COSCO & Fortescue Partner to Develop Green Fuel Supply Chain

China’s COSCO has entered into a preliminary agreement with Australian mining company Fortescue to collaboratively establish a green fuel supply chain.

The memorandum of understanding outlines plans to explore the construction and deployment of green ammonia-fueled vessels, which may be owned by COSCO or jointly with Fortescue. These vessels will be used to transport iron ore and other minerals, aiming to reduce carbon emissions along the China-Australia iron ore shipping corridor.

"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 said in a statement.

Earlier this year, Fortescue's Green Pioneer, a platform supply vessel, achieved a milestone by becoming the first in the world to use ammonia fuel in combination with diesel in its combustion process.