The non-binding agreement was signed at COSCO headquarters in Shanghai. Credit: Fortescue

Chinese major shipping corporation COSCO has signed a memorandum of cooperation with an Australian green technology and energy company, Fortescue. 

The pair hope to collaborate on the development of low-emission shipping fuel and its supply chain. 

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“This includes the potential for Fortescue to use COSCO SHIPPING vessels or vessels owned by the two parties, powered by green ammonia, to ship iron ore and other mineral products with the aim of reducing China-Australia Iron Ore Green Shipping Corridor’s carbon emissions,” the companies explained. 

Fortescue began its work with the Australian mining industry before growing into more sectors, including green fuel solutions. 

The joint statement explained that: “both parties will leverage their respective technological and resource strengths to collectively develop a sustainable green fuel supply chain. This initiative aims to advance the shipping industry’s energy structure transformation, foster its eco-friendly growth, and contribute to the realization of a globally interconnected green, low-carbon, and sustainable shipping ecosystem.” 

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“The shipping industry plays a vital role in global trade however also contributes significantly to the world’s carbon emissions. This partnership marks a significant step of the shipping industry in decarbonizing and establishing a green fuel supply chain,” said CEO of Fortescue Metals, Dino Otranto.

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“It also paves the way for collaboration on a variety of decarbonization solutions which we believe will be integral to delivering on our ambitious target of net zero Scope 3 emissions by 2040,” Otranto added. 

COSCO Shipping added that it hoped to build on recent Australia-China trade and bulk cargo cooperation. 

“By enhancing collaboration with international partners, we aim to create a digitally advanced, intelligent, environmentally friendly, open, shared, and secure industrial ecosystem. We are committed to promoting the sustainability and low-carbon evolution of the shipping industry throughout its life cycle,”  Lin Ji, COSCO Shipping’s executive vice president said.