Fortescue’s Executive Chairman Andrew Forrest has called on the International Maritime Organization (IMO) to impose a $100 per metric ton (mt) carbon levy on marine energy consumption. This move aims to make green ammonia—produced from renewable hydrogen—more competitive against conventional marine fuels.
IMO’s Role in Maritime Decarbonization
The IMO, a UN agency regulating global shipping, is set to finalize new greenhouse gas (GHG) regulations this year for implementation in 2027. Forrest emphasized that a $100/mt CO2-equivalent levy would act as a market signal, helping close the cost gap between green ammonia and traditional fossil fuels.
“Everyone wants a level playing field, wants a market signal … for a proper transition,” Forrest said during an industry event in London.
Fortescue’s Commitment to Green Shipping
Fortescue, one of Australia’s largest miners, has been actively investing in renewable hydrogen and ammonia production while planning to:
- Develop ammonia bunkering infrastructure
- Decarbonize its shipping fleet
- Promote green ammonia as a sustainable marine fuel
Forrest reassured that if the IMO adopts the carbon levy, Fortescue will pay it when chartering ships and pass the cost to customers, whom he believes will support greener shipping.
A Push for Stricter Global Standards
In addition to the carbon levy, Forrest urged the IMO to:
- Provide financial incentives for hydrogen-based e-fuels like green ammonia
- Establish a stringent global fuel standard to lower the GHG intensity of marine energy
- Phase out transitional fuels like LNG and biofuels
“The International Maritime Organization must fast-track shipping’s transition to green fuels,” Forrest stated.
Green Ammonia vs. Conventional Fuels
According to Platts’ global bunker cost calculator (January 2025), fuel price comparisons in Far East Asia were:
- Green ammonia: $47.6/GJ
- B24 biobunker fuel: $17.67/GJ
- LNG: $16.96/GJ
- 0.5%-sulfur fuel oil: $14.22/GJ
Despite its higher cost, green ammonia remains a key candidate for zero-emission shipping.
Ammonia-Powered Shipping Developments
- Green Pioneer, Fortescue’s pilot ammonia-powered vessel, fueled one mt of ammonia in Southampton on March 5, after completing the world’s first ammonia bunkering in Singapore (March 2024).
- Ammonia remains highly toxic and corrosive, and the first ammonia-powered ships for deep-sea trade are expected later this decade.
- Fortescue is working with China Cosco Shipping Corp. to develop ammonia-fueled bulk carriers.
Future Outlook
Despite scaling back its ambitious green hydrogen production targets, Fortescue remains committed to making green ammonia commercially available in Australia and Singapore by 2027.
“I’m whipping my team every single day … just give us a couple of years,” Forrest said, reaffirming Fortescue’s dedication to green shipping.
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Source: S&P GLOBAL
