FMG plans to decarbonise bulk carriers with green ammonia

What are Scope 3 emissions? These are the emissions that are indirectly created by a company’s value chain. This measurement of emissions includes that of its employees, suppliers and even its customers. Many organisations are now becoming aware of the high percentage of emissions that remain with their value chains and are taking the necessary steps to encourage sustainability down the line. 

Fortescue Metals Group (FMG), a leading Australian organisation in the iron ore industry, has made the conscious decision to convert eight of its supersized bulk carrier vessels to be fuelled by green ammonia. 

Provoking decarbonisation in the value chain 

FMG is expected to become the first major mining company to announce a specific decarbonisation target for this year, involving the reduction of Scope 3 emissions to net-zero by 2040. 

How will it achieve this? 

Although it cannot physically manage its customers’ emissions directly, the company has plans to build its own green hydrogen production facilities, which will allow it to produce iron from its own ore and ensure that customers are effectively buying green iron. 

According to the FMG’s Chief Executive Officer, Elizabeth Gaines, its commitment to lowering Scope 3 emissions could benefit other industries as well. ‘

Fortescue has commenced its transition from a pure-play iron ore producer to a green renewables and resources company, underpinned by the world’s first major carbon emission heavy industry operation to set a target to achieve carbon neutrality by 2030’, says Gaines. 

‘We remain committed to actively engaging with our customers, suppliers and other key industry participants to facilitate the reduction of emissions. This includes the development of technologies and the supply of green hydrogen and ammonia through FFI, which will provide significant opportunities for the steel, cement and land and sea transport industries to decarbonize’.

The company is already carrying out its own in-house testing of green ammonia for its vessels. As a result of the switch in fuel type, FMG hopes to encourage further organisations to make the switch while also supporting businesses to convert to green hydrogen. 

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