Posted on 12 Mar 2025
Fortescue’s chairman Andrew Forrest is calling on the International Maritime Organization (IMO) to implement a “basic” carbon tax to accelerate shipping’s decarbonisation.
A $100/tonne carbon levy would send a market signal to promote green ammonia adoption in the sector, bridging its price gap with conventional, fossil-based fuels, he suggests. The IMO should also provide “clear and effective” financial rewards for hydrogen-based fuels and a “stringent global fuel standard,” the executive adds.
Forrest is urging the IMO to fast-track shipping’s transition to green fuels, Kallanish reports. “There is no time to waste on so-called transition fuels” such as biofuels and liquified natural gas (LNG), he adds.
The IMO is due to decide whether to implement a carbon tax in a meeting next month. Final regulations, expected this year, will be implemented globally in 2027.
According to Forrest, if a levy was adopted, Fortescue’s iron ore customers would be willing to pay a green premium for cleaner shipping. “We will be paying it and billing it in the bill… Our customers will be so much happier,” he said at a London tour to promote the group’s Fortescue Green Pioneer – the world’s first dual-fuelled ammonia-powered vessel.
The ship arrived in London over the weekend, starting a global tour of ports aimed at fast-tracking international shipping’s transition to green fuels. The vessel, which features converted ammonia engines, left Singapore in January. It also runs on diesel.
Forrest says an early use of green ammonia by the maritime sector will “accelerate a reduction in shipping costs through the widespread adoption and scaling of renewable energy.” He adds Fortescue will start retrofitting its vessels with zero-carbon engines “by the end of the decade.”
In addition to iron ore mining, the Fortescue group is also building green projects and technology to achieve what it calls “real [net] zero.” These involve green hydrogen and ammonia production projects, plus the manufacturing of electrolysers, batteries and ammonia-powered engines.
Fortescue Energy plans to invest $750 million in green projects, targeting the production of 12,000 t/y of green hydrogen, which can be converted, stored and transported as green ammonia.
The IMO will impose legally binding regulations to reduce emissions with interim targets in 2030 and 2040. Shipping’s complete decarbonisation is planned by 2050.
Source:Kallanish
