COSCO and Fortescue Unite to Pioneer Green Fuel Shipping

China's COSCO Shipping Corporation and Australia's Fortescue have agreed to collaboratively build a green fuel supply chain to minimize pollution in the shipping industry. This venture includes developing green ammonia-fuelled vessels to reduce carbon emissions, particularly in the China-Australia shipping corridor. The partnership aims for net-zero emissions by 2040.

China's COSCO Shipping Corporation has entered into a preliminary agreement with Australia's Fortescue to develop a green fuel supply chain aimed at reducing pollution in the shipping industry, the Chinese firm announced on Monday.

The memorandum of understanding focuses on the construction and deployment of green ammonia-fuelled vessels, which could be owned by either COSCO or jointly by both companies. These vessels will be used to transport iron ore and other minerals, helping to cut carbon emissions in the China-Australia iron ore green shipping corridor. 'We are committed to increasing cooperation with global partners to actively promote the green and sustainable development in the shipping industry throughout its life cycle,' COSCO Shipping, headquartered in Shanghai, noted on its WeChat account.

'The cooperation marks another big step in decarbonising the shipping industry ... These solutions will be integral to achieving our net zero Scope 3 emission target by 2040,' said Fortescue, a major player in green technology, energy, and metals production and the world's No.4 iron ore supplier. Fortescue's executives have recently been in China discussing potential partnerships, CEO Dino Otranto mentioned on July 25.

In March, Fortescue conducted the world's first trial using ammonia as shipping fuel at the port of Singapore, according to Reuters.