China’s Cosco Shipping is joining forces with Australian mining giant Fortescue Metals Group to build a green fuel supply chain.
The companies signed a deal to potentially build and deploy green ammonia-fuelled vessels owned by Cosco or jointly owned by both companies to reduce carbon emissions in the China-Australia iron ore green shipping corridor.
“The partnership marks another important step forward for the shipping industry in decarbonising and building a green fuel supply chain, paving the way for collaboration on a variety of decarbonisation solutions that we believe are integral to achieving our ambitious goal of achieving Scope 3 net zero emissions by 2040”, said Fortescue chief executive officer Dino Otranto.
Cosco said green and low-carbon has become a new trend to promote the sustainable development of shipping.
Fortescue, which produces around 190m tonnes of iron ore annually, has set ambitious targets to achieve carbon neutrality for Scope 1 and 2 emissions by 2030 and net zero Scope 3 emissions by 2040.
In February, the mining company completed the world’s first use of ammonia, in combination with diesel in the combustion process, as a marine fuel onboard its Singapore-flagged ammonia-powered 2,874-gt FFI Green Pioneer (built 2010) — a former offshore supply vessel — in the Port of Singapore.
Fortescue was recently reported to be in the newbuilding market, enquiring about five newcastlemax bulk carriers and a quintet of very large ammonia carriers in business being worked under the codename Project Consul.
These moves in shipping are just one aspect of its decarbonisation and transformation plans for its business outside the mining sector.
