Fortescue and major global shipping company COSCO Shipping have signed a non-binding memorandum of understanding to work together on decarbonising 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 the 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 COSCO Shipping executive vice president of China Lin Ji.
“The shipping industry plays a vital role in global trade however also contributes significantly to the world’s carbon emissions,” Otranto said.
“This collaboration marks a significant step in decarbonising the shipping industry and establishing a green fuel supply chain.
“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.”
The collaboration builds on Fortescue’s existing 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.
“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,” Ji said.
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