Fortescue and COSCO SHIPPING Sign MOU for Shipping Decarbonization

Fortescue, a green technology, energy, and metals company, has entered into a non-binding Memorandum of Understanding with COSCO SHIPPING, the world's leading shipping company, to collaborate on decarbonizing the shipping industry. This partnership will focus on developing technologies to reduce emissions and establish a green fuel supply chain. A key aspect of their collaboration involves exploring the construction and deployment of COSCO SHIPPING vessels, or co-owned vessels, powered by green ammonia. The goal is to transport iron ore and other mineral products, thereby reducing the carbon emissions associated with the Australia-China Iron Ore Green Shipping Corridor.

The signing ceremony for the Memorandum of Understanding was held in Shanghai, where key representatives from both companies were present. Dino Otranto, Chief Executive Officer of Fortescue Metals, and Lin Ji, Executive Vice President of China COSCO SHIPPING Corporation, attended the event. Their participation underscores the commitment of both Fortescue and COSCO SHIPPING to advancing their collaboration on decarbonizing the shipping industry and developing innovative technologies and green fuel solutions to reduce carbon emissions in the Australia-China Iron Ore Green Shipping Corridor.

Mr. Otranto underscored the shipping industry's pivotal role in global trade while acknowledging its significant contribution to carbon emissions. This collaboration marks a landmark achievement in efforts to decarbonize the industry by establishing a green fuel supply chain, which is a critical step towards mitigating its environmental impact. The partnership not only aims to reduce carbon emissions but also sets the stage for exploring diverse decarbonization solutions. These innovations are integral to meeting their ambitious target of achieving net-zero Scope 3 emissions by 2040, thus demonstrating a commitment to sustainability and environmental responsibility in the maritime sector.

Lin Ji, Executive Vice President of China COSCO SHIPPING Corporation, emphasized the company's dedication to advancing green and low-carbon initiatives as a core part of its development strategy. By enhancing collaboration with global partners, COSCO SHIPPING aims to create a comprehensive industry ecosystem that is digital, green, open, shared, and secure. This approach is designed to foster sustainable development throughout the entire life cycle of the shipping industry, reflecting a strong commitment to reducing environmental impact and promoting a more sustainable future in maritime operations.

This partnership leverages Fortescue’s advancements in decarbonizing shipping, including its development of a ship engine capable of using green ammonia. In March 2024, the Fortescue Green Pioneer achieved a milestone by receiving the world’s first certification for using ammonia mixed with diesel as a marine fuel, advancing the company's green shipping goals. Additionally, the vessel has successfully completed propulsion and maneuverability trials at the Port of Singapore, further demonstrating its readiness for sustainable maritime operations.