Fortescue, an Australian company specialising in green technology, energy, and metals, has partnered with COSCO SHIPPING, the world’s leading shipping company, by signing a non-binding Memorandum of Understanding (MoU) to advance the decarbonisation of shipping.
The two companies will work together to develop technologies aimed at reducing emissions and establishing a green fuel supply chain. Their collaboration includes exploring the construction and operation of COSCO SHIPPING vessels, or co-owned vessels, powered by green ammonia for transporting iron ore and other minerals. This initiative aims to lower carbon emissions in the Australia-China Iron Ore Green Shipping Corridor.
The MoU was signed in Shanghai, and attended by Fortescue Metals CEO Dino Otranto and Lin Ji, Executive Vice President of China COSCO SHIPPING Corporation.
“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 decarbonising the shipping industry and establishing a green fuel supply chain,” Otranto said.
He added, “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.”
Lin Ji 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 partnership builds on Fortescue’s ongoing research and development efforts to decarbonise shipping, including the creation of a green ammonia-capable ship engine.