Fortescue and COSCO Shipping have inked a deal to partner on decarbonising shipping, marking the teaming with a recent ceremony in Shanghai.
The companies are set to collaborate on developing technologies to lower emissions and build a green fuel supply chain, including the exploration and construction and deployment of COSCO Shipping vessels, or co-owned vessels, powered by green ammonia. Those vessels will ideally ship iron ore and other mineral products with the aim of reducing Australia-China Iron Ore Green Shipping Corridor’s carbon emissions.
Fortescue officials noted the project builds on its research and development to decarbonise 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 manoeuvrability trials in the Port of Singapore.
“The shipping industry plays a vital role in global trade, however it also contributes significantly to the world’s carbon emissions. This collaboration marks a significant step in decarbonising the shipping industry and establishing a green fuel supply chain,” said Fortescue Metals Chief Executive Officer Dino Otranto.
“It also paves the way for collaboration on a variety of decarbonisation solutions which we believe will be integral to delivering on our ambitious target of net zero Scope 3 emissions by 2040.”
COSCO Executive Vice President of China Lin Ji added: “COSCO…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.”