The deal envisages iron ore being shipped on ammonia-powered vessels. File Image / Pixabay
A consortium of mining firms and shipping companies is planning to set up a green corridor for iron ore shipments in the Asia-Pacific region.
BHP, Rio Tinto, Oldendorff Carriers, Star Bulk Carriers and the Global Maritime Forum have signed a letter of intent to develop a green corridor for iron ore shipments between Australia and East Asia, the Global Maritime Forum said in a statement on its website on Wednesday.
The parties will jointly assess the potential for green ammonia supply, bunkering and first mover support mechanisms needed to set up the green corridor.
"BHP's membership of this Green Corridor consortium is testament to the importance we place on targeted exploration and partnerships in identifying pathways to decarbonization for the maritime sector," Rashpal Bhatti, vice president of maritime and supply chain excellence at BHP, said in the statement.
"As one of the largest bulk charterers in the world, we recognize this opportunity and have announced a number of partnerships across our value chain to seek to accelerate the process."