China's Cosco Shipping, Fortescue Eyeing Ammonia-Fuelled Ships

China’s COSCO Shipping Corporation has done a deal with Fortescue, an Australian company involved in green technology, plus mineral and energy.

Cosco said on Monday it has signed a preliminary agreement with Fortescue – run by Perth Billionaire Andrew Forrest – to jointly build a green fuel supply chain with the aim of reducing pollution from the shipping sector.

The memorandum of understanding includes exploring construction and deployment of green ammonia-fuelled vessels owned either by COSCO or jointly owned by both companies to transport iron ore and other minerals to reduce carbon emissions in the China-Australia iron ore green shipping corridor.

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“We are committed to increasing cooperation with global partners to actively promote the green and sustainable development in the shipping industry throughout its life cycle,” COSCO Shipping, headquartered in Shanghai, said in a statement on its WeChat account.

“The cooperation marks another big step in decarbonising the shipping industry … These solutions will be integral to achieving our net zero Scope 3 emission target by 2040,” Fortescue, an integrated green technology, energy, and metals company, said in the statement.

Fortescue is known as the world’s No-4 iron ore supplier.

Fortescue’s executives have been in China in recent weeks talking with potential partners for joint projects, CEO Dino Otranto said on July 25.

Fortescue conducted the world’s first trial using ammonia as shipping fuel in the port of Singapore, Reuters reported in March.