Fortescue, a green technology, energy and metals company, and COSCO SHIPPING, the world’s leading shipping company, have signed a non-binding Memorandum of Understanding to work together to decarbonize shipping.
Both companies will collaborate on developing technologies to lower emissions and build a green fuel supply chain. This includes exploring the construction and deployment of COSCO SHIPPING vessels, or co-owned vessels, powered by green ammonia, to ship iron ore and other mineral products with the aim of reducing Australia-China Iron Ore Green Shipping Corridor’s carbon emissions.
The signing ceremony held in Shanghai was attended by Fortescue Metals Chief Executive Officer, Dino Otranto, and Executive Vice President of China COSCO SHIPPING Corporation, Lin Ji, according to a news release.
“The shipping industry plays a vital role in global trade however also contributes significantly to the world’s carbon emissions. This collaboration marks a significant step in decarbonizing the shipping industry and establishing a green fuel supply chain,” Mr Otranto said.
“It also paves the way for collaboration on a variety of decarbonization solutions which we believe will be integral to delivering on our ambitious target of net zero Scope 3 emissions by 2040.”
Lin Ji, Executive Vice President of China COSCO SHIPPING Corporation, said “COSCO SHIPPING is committed to green and low carbon as one of the two major development tracks, increasing cooperation with global partners, joining hands to jointly build a digital, green, open, shared and safe industry development ecosystem, and actively promoting the sustainable development of green and low carbon in the entire life cycle of the shipping industry.”
This collaboration builds on Fortescue’s research and development to decarbonize shipping, having developed a green ammonia capable ship engine. In March 2024, the Fortescue Green Pioneer received the world’s first certification to use ammonia in combination with diesel as a marine fuel, bringing the company one step closer to green shipping. The vessel has also successfully completed propulsion and maneuverability trials in the Port of Singapore.
