Cosco and Fortescue focus on green fuel supply chain

Cosco Shipping and Australia-based energy and metals company, Fortescue, have signed an agreement to cooperate on the development of a sustainable green fuel supply chain. The collaboration includes scope for the mining company to use Cosco vessels, or ships owned by the two parties, for the transport of iron ore and other mineral products to reduce carbon emissions on the China-Australia Iron Ore Green Shipping Corridor.

Dino Otranto, Fortescue Metals CEO, and Lin Ji, Cosco Shipping’s executive vice president, attended the signing ceremony which marked deeper cooperation between the two companies in the ore trade between the two countries.

In a statement, Fortescue said: “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 decarbonising and establishing a green fuel supply chain. It also paves the way for collaboration on a variety of decarbonisation solutions which we believe will be integral to delivering on our ambitious target of net zero Scope 3 emissions by 2040.”

Cosco Shipping stated: “Sustainability and decarbonisation have emerged as a new trend that propels the sustainable development of the shipping industry. Cosco Shipping is dedicated to prioritising these green and low-carbon initiatives as one of its two development tracks. 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.”