Norsepower's push-button wind propulsion system uses rotor sails to harness wind to maximise ship fuel efficiency.
When wind conditions are favourable, the rotor sails kick in to allow the main engines to be throttled back to save fuel and reduce emissions.
The rotor sails will be installed on the Koryu, a 53,762-deadweight tonne combination carrier that hauls copper concentrate from Chile to Japan, and sulphuric acid from Japan to Chile.
Norsepower chief strategy officer Jukka Kuuskoski said the company wanted to set the standard in bringing sailing back to shipping and help the maritime industry reach the goal of zero carbon emissions.
"As fuel prices increase and a carbon levy is initiated, investing in technologies that have proven emissions reductions and fuel savings is essential for long-term commercial success," he said.
"Working with BHP and PPC demonstrates the increased commitment to greener operations, particularly within the bulk carrier market [and] we look forward to completing the installation and seeing the results."
BHP CCO Vandita Pant said the project supported BHP's decarbonisation ambitions.
"The wind-assisted propulsion system will enable further greenhouse gas emissions reduction in our supply chain and add to the already strong partnership between BHP and PPC," she said.
PPC president Kazuhiro Hori said the Koryu project was a good example of collaboration and a valuable step that proves both companies were eager to take on the climate challenge.