Fortescue and COSCO Shipping to develop green fuel supply chain

July 30, 2024, by Aida Čučuk

Australian green technology, energy and metals company Fortescue and China-based shipping major COSCO Shipping have signed a non-binding memorandum of understanding (MoU) to work on developing technologies to lower emissions and build a green fuel supply chain.

The collaboration 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.

Dino Otranto, CEO of Fortescue Metals, commented: “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. 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, Executive Vice President of China COSCO Shipping, stated: “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.”

Moving forward, COSCO Shipping said the company remains committed to accelerating the green and low-carbon transformation across the global supply chain. The company plans to further establish a marine new energy industry chain and provide eco-friendly shipping solutions.

Fortescue noted that this collaboration builds on its research and development to decarbonize shipping, having developed a green ammonia-capable ship engine.

In 2024, the dual-fueled ammonia-powered vessel Fortescue Green Pioneer received a 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 completed propulsion and manoeuvrability trials in the Port of Singapore.