COSCO and Fortescue to build green fuel supply chain to decarbonise shipping

Green technology, energy and metals company Fortescue on Tuesday (30 July) said it has signed a non-binding Memorandum of Understanding with COSCO Shipping 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 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 Executive Vice President of China COSCO SHIPPING Corporation, Lin Ji.

“The shipping industry plays a vital role in global trade. However, it 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,” Mr Otranto said.

“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 Corporation, said: “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.”

This collaboration builds on Fortescue’s research and development to decarbonise shipping, having developed a green ammonia capable ship engine. 

In March, the Fortescue Green Pioneer received the world’s first certification to use ammonia in combination with diesel as a marine fuel. The vessel has also successfully completed propulsion and manoeuvrability trials in the Port of Singapore. 

Green Pioneer completed the world’s first ammonia bunkering trial safely at an ammonia facility on Jurong Island, in the Port of Singapore in March 2024, following which the vessel received flag approval from the Singapore Registry of Ships (SRS) and the ‘Gas Fuelled Ammonia’ notation from DNV.

Related: SMW 2024: Fortescue gets DNV certificates for ammonia-powered vessel
Related: Singapore: “Fortescue Green Pioneer” completes trials using ammonia-HVO bunker fuel
Related: Fortescue successfully conducts world’s first ammonia bunker fuel trial in Singapore

Photo credit: Fortescue
Published: 30 July 2024