BHP and Fortescue – first movers in decarbonizing bulk carriers BOX 7 In July 2024, Fortescue signed an MoU with COSCO – a Chinese state-owned maritime shipping company – to jointly build a green shipping fuel supply chain. The agreement would see the companies exploring the construction and deployment of green ammonia-fuelled vessels to transport iron ore and other minerals from Australia to China.68 In July 2025, mining multinational BHP contracted to charter two ammonia dual-fuel Newcastlemax bulk carriers from COSCO, scheduled to enter service in 2028. BHP has announced these ships could cut GHG emissions by 50-95% per voyage if powered by low- to zero-carbon ammonia.69 The contracts form part of BHP’s commitment as a member of the First Movers Coalition to ensure that by 2030, 10% of its products to customers will be shipped using zero-GHG emissions fuels. At the same time, Australia could emerge as a key global producer of alternative fuels for the shipping industry. One participant highlighted that the country looks well-placed to manufacture green ammonia, given its existing fuel production capacity, pipeline infrastructure, export readiness and emerging government commitments to green hydrogen production. While book-and-claim options were discussed, there was also a push during the workshop to focus on building out robust physical supply chains. Sounding a cautionary note, some argued that – given the long lead-time required to scale up green fuel manufacture, safety infrastructure and regulations in collaboration with governments and port authorities – deep-sea shipping needs transition fuels now, such as LNG and biodiesel, to bridge the gap. Some LNG dual-fuel Newcastlemaxes are already in service on the WA-China route, chartered by BHP . Emission reductions range from 10-30% depending on methane management. Marine biofuels are also being trialled on the same route by Rio Tinto. Participants voiced uncertainty around future green fuel standards and costs – risks that act as a significant constraint on investment. The workshop called for clearer government policies and financial instruments, including subsidies and co-investment, to de-risk private investment in green shipping and fuel transitions. Participants at the Adelaide workshop highlighted that alignment of infrastructure to accelerate both green shipping and green trucking is essential to avoid the risk of stranded assets. Gaps in logistics or coordination will undermine the wider credibility of green iron. A comprehensive solution could have a major impact not just on Australia or the region, but globally – given that 60% of the world’s iron ore trade is shipped across Asia-Pacific.3.4 Green trucking and shipping corridors require regional collaboration Australia’s commitment to expanding electric vehicle (EV) infrastructure has accelerated, with the federal government and private sector investing heavily in charging solutions. As of mid-2024, there were almost 3,000 public EV charging stations across the country, including more than 1,000 fast- charging sites – a 90% increase year-on-year.70 The government’s Driving the Nation Fund – announced in 2022 with AU$500 million of funding – is boosting Australia’s shift to electric vehicles (EVs) in several ways. In 2025, it will channel AU$99.3 million to support a national rollout of EV charging infrastructure, as well as supporting hydrogen refuelling infrastructure and investment in EV fleets. The government is partnering with the National Roads and Motorists’ Association (NRMA) to deliver a “backbone” national EV charging network. There will be over 100 charging stations on key highway routes across Australia at an average interval of 150 kms, connecting all capital cities.71 Meanwhile, ARENA is tasked with delivering the Driving the Nation Program, which supports the development of a network of charging infrastructure and the deployment of battery-electric trucks along key freight corridors in Australia, as outlined in its report Electrifying Road Freight.72 In November 2024, ARENA made AU$100 million available under this programme for initiatives to support charging and uptake of heavy BEVs. On the hydrogen front, Australia is developing an East Coast Hydrogen Highway, following an MoU signed in 2022 between the governments of New South Wales, Victoria and Queensland to establish a network of hydrogen refuelling stations on key freight routes such as the Hume, Pacific and Newell Highways.73Green trucking corridors Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 24

Unlocking Asia-Pacific as a First Mover 2025