Fortescue, a green technology, energy, and metals company, and COSCO SHIPPING, the world’s leading shipping company, have signed a non-binding Memorandum of Understanding to collaborate on decarbonizing shipping.
The two companies will work together to develop technologies aimed at lowering emissions and establishing a green fuel supply chain. This includes exploring the construction and deployment of COSCO SHIPPING vessels, or co-owned vessels, powered by green ammonia. The goal is to reduce the carbon emissions of the Australia-China Iron Ore Green Shipping Corridor by shipping iron ore and other mineral products.
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 global carbon emissions. This collaboration represents a significant step toward decarbonizing the shipping industry and establishing a green fuel supply chain,” Said Dino Otranto, Chief Executive Officer of Fortescure Metals
“It also paves the way for collaboration on a variety of decarbonization solutions, which we believe will be integral to achieving our ambitious target of net zero Scope 3 emissions by 2040.”
Lin Ji, Executive Vice President of China COSCO SHIPPING Corporation, stated “COSCO SHIPPING is committed to green and low-carbon development as one of its major tracks. We are increasing cooperation with global partners to jointly build a digital, green, open, shared, and safe industry development ecosystem, and actively promote the sustainable development of green and low-carbon practices throughout the entire life cycle of the shipping industry.”
This collaboration builds on Fortescue’s research and development efforts to decarbonize shipping, including the development of a green ammonia-capable ship engine. In March 2024, the Fortescue Green Pioneer received the world’s first certification to use ammonia in combination with diesel as a marine fuel, bringing the company closer to achieving green shipping. The vessel has also successfully completed propulsion and maneuverability trials in the Port of Singapore.
About COSCO Shipping
COSCO SHIPPING Lines was established on March 1, 2016, through the integration of COSCO Container Lines Co., Ltd. and China SHIPPING Container Lines Co., Ltd., with a registered capital of RMB 23.664 billion. Headquartered in Shanghai’s Hongkou District, the company is a core segment of COSCO Shipping Group, specializing in domestic and international container shipping services.
COSCO SHIPPING Lines operates 27 departments and has domestic branches in nine major Chinese ports, including Dalian, Tianjin, Qingdao, Shanghai, Ningbo, Xiamen, South China, Hainan, and Wuhan. Internationally, it maintains branches across Europe, North America, Southeast Asia, West Asia, South America, Australia, Japan, Korea, and Africa. As of July 2022, the company managed 224 corporate enterprises globally and over 400 marketing and service outlets.
With a workforce of 17,000 employees, including 5,339 stationed overseas, COSCO SHIPPING Lines owns and operates 368 container vessels with a combined capacity of approximately 2.1 million TEUs. The company’s fleet serves 395 international and domestic shipping routes, calling at 578 ports across 142 countries and regions.
About Fortescue
Fortescue is a proud West Australian company renowned for its culture, values, innovation, and industry-leading development of infrastructure and mining assets. As one of the world’s lowest-cost iron ore producers, we are currently shipping over 180 million tonnes annually and have delivered more than 1.7 billion tonnes of iron ore to our customers since 2008. Through our green energy and technology subsidiary, Fortescue Future Industries (FFI), we are rapidly evolving into an integrated global green energy and resources company. Our ambitious targets include achieving carbon neutrality for Scope 1 and 2 emissions by 2030 and net zero Scope 3 emissions by 2040. No other mining company of our size and scale is taking as extensive measures as we are to eliminate emissions.
Source Fortescue