The company Fortescue, has taken a step towards sustainability by signing a non-binding Memorandum of Understanding (MoU) with COSCO SHIPPING, to establish a collaboration has the fundamental objective of decarbonizing shipping, a key sector in global trade, but also one of the biggest contributors to carbon emissions.
A collaborative agenda to decarbonize shipping
The companies will work together to develop technologies to reduce greenhouse gas emissions. One of the core projects is the construction and deployment of environmentally friendly ammonia-powered vessels owned or managed by COSCO SHIPPING. These vessels will be used to transport iron ore and other mineral products between Australia and China, with the goal of reducing the carbon footprint of the Green Iron Ore Shipping Corridor.
The signing of the MoU took place at a ceremony in Shanghai, which was attended by Dino Otranto, CEO of Fortescue Metals, and Lin Ji, executive vice president of China COSCO SHIPPING Corporation.
During the event, Otranto mentioned the importance of this collaboration, which the shipping sector requires for international trade. In his words, this historic partnership will enable the creation of a green fuel supply chain, which in turn will make progress towards the goal of achieving net emissions by 2040.
Lin Ji expressed COSCO SHIPPING’ s commitment to developing sustainable solutions. Among Ji’s remarks, he mentioned that the company is focused on environmental protection and carbon emission reduction as key pillars of its growth strategy. In addition, he highlighted that this collaboration strengthens global cooperation in creating a green, digital and safe industrial ecosystem.
This agreement between Fortescue and COSCO SHIPPING builds on Fortescue’s previous progress in decarbonizing shipping. In March 2024, the company reached a major milestone by receiving the world’s first certification for a ship engine capable of using ammonia in combination with diesel as a marine fuel.
This innovation, implemented on the Fortescue Green Pioneer, consolidates progress towards greener shipping. In addition, the vessel has successfully completed propulsion and maneuverability tests in the port of Singapore, demonstrating its operational capability in adverse and real-world conditions.
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Source and photo: Fortescue
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