Diversified major BHP said on Wednesday it had signed contracts with China's COSCO Shipping Group to charter two ammonia dual-fuelled Newcastlemax bulk carriers, continuing efforts to decarbonise its maritime supply chain.

The five-year time charter agreements will see the new vessels primarily transport iron-ore from Western Australia to Northeast Asia. The ships, expected to be delivered from 2028, will be among the first in the world capable of using ammonia as marine fuel.

BHP said that when operated on lower or zero greenhouse gas emissions ammonia, the vessels could reduce emissions by at least 50% and up to 95% per voyage compared with conventional fuels.

“This is an exciting moment for BHP, COSCO Shipping and the maritime sector,” said BHP vice president maritime and supply chain excellence Emma Roberts. “Together we are contributing to the industry’s ambition towards abatement of maritime greenhouse gas emissions through these first generation ammonia dual-fuelled vessels.”

BHP selected COSCO following a competitive process that considered safety, technical and commercial factors. The two companies have an established relationship and will work together with regulators to ensure the safe delivery and operation of the ships.

The deal supports BHP’s commitment under the First Movers Coalition to ship 10% of its products on zero-emission vessels by 2030. It also builds on BHP’s previous steps to lower shipping emissions, including its use of five dual-fuel LNG vessels and biodiesel in its value chains.

“Our tender process for the design and charter of ammonia dual-fuelled bulk carriers has brought together shipowners, fuel suppliers, engine-makers, and regulatory bodies from around the world,” Roberts said.

“We believe this investment will help to build momentum in the technology, strengthen the demand for ammonia as a marine fuel, and support the reduction of greenhouse emissions in the maritime value chain.”

BHP is working with industry stakeholders to develop an ammonia bunkering plan for the ships and has launched a tender process to source low-emissions ammonia.

COSCO Shipping vice president Ji Lin said the agreement reflected growing efforts to develop the Australia–China green shipping corridor.

“Our partnership with BHP has developed for many years. It’s been shaped by openness, reliability, and a joint pursuit of innovation,” he said. “Ammonia is one of the most promising marine fuels with zero-carbon potential. These vessels will stand at the forefront of technological and environmental advancement—not just for COSCO Shipping and BHP, but for the broader dry bulk sector.”