Fortescue, a green technology, energy, and metals company, has signed a non-binding Memorandum of Understanding (MoU) with COSCO SHIPPING, the world’s leading shipping company, to collaborate on decarbonizing shipping.
The partnership aims to develop technologies that lower emissions and establish a green fuel supply chain. This initiative includes exploring the construction and deployment of COSCO SHIPPING vessels, or co-owned vessels, powered by green ammonia to transport iron ore and other mineral products. The goal is to reduce carbon emissions along the Australia-China Iron Ore Green Shipping Corridor.
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.
“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 decarbonizing the shipping industry and establishing a green fuel supply chain,” said Otranto.
“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 added, “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 ongoing research and development efforts to decarbonize shipping. In March 2024, the Fortescue Green Pioneer received the world’s first certification to use ammonia in combination with diesel as a marine fuel, marking a significant milestone in green shipping. The vessel has also successfully completed propulsion and maneuverability trials in the Port of Singapore.
