China’s COSCO Shipping signs agreement with Fortescue to develop green fuel supply chain

China’s COSCO Shipping Corporation has entered into a preliminary agreement with Australia’s Fortescue (FMG.AX) to collaborate on developing a green fuel supply chain aimed at reducing pollution in the shipping industry. The memorandum of understanding involves exploring the construction and deployment of green ammonia-fueled vessels, either owned by COSCO or jointly owned by both companies, to transport iron ore and other minerals, thereby reducing carbon emissions along the China-Australia iron ore shipping corridor.

COSCO Shipping which is based in Shanghai, stated that are committed to strengthening cooperation with global partners to actively promote green and sustainable development throughout the shipping industry’s life cycle. Similarly, Fortescue, a leading green technology, energy, and metals company, and the world’s fourth-largest iron ore supplier, commented in the statement that this partnership represents a significant step toward decarbonizing the shipping industry. The solutions will be crucial in achieving their net zero Scope 3 emission target by 2040. Fortescue’s executives have recently been in China, engaging with potential partners for joint projects, according to CEO Dino Otranto. In March, as reported by Reuters, Fortescue conducted the world’s first trial using ammonia as a shipping fuel at the port of Singapore.