China’s COSCO Shipping Corporation has signed a preliminary agreement with Australia’s Fortescue to jointly develop a green fuel supply chain aimed at reducing pollution in the shipping industry. The memorandum of understanding outlines plans to explore the construction and deployment of green ammonia-fueled vessels, which could be owned either by COSCO or jointly by both companies. These vessels will transport iron ore and other minerals, contributing to the reduction of carbon emissions in the China-Australia iron ore green corridor.
COSCO Shipping, headquartered in Shanghai, emphasised its commitment to enhancing cooperation with global partners to promote green and sustainable development in the shipping industry. The company views this collaboration as a significant step towards decarbonising shipping and achieving its net zero Scope 3 emission target by 2040.
Fortescue, a leading green technology, energy, and metals company, highlighted the importance of this cooperation in advancing their sustainability goals. The company, also known as the world’s fourth-largest iron ore supplier, recently conducted a successful trial of ammonia as a shipping fuel in Singapore.
Fortescue’s executives have been actively engaging with potential partners in China, with CEO Dino Otranto confirming these discussions on July 25. This partnership underscores both companies’ dedication to pioneering green fuel solutions and setting new standards for environmental stewardship in maritime transport.
