Andrew Forrest’s iron ore and green energy giant Fortescue has signed a Memorandum of Understanding (MoU) with the world’s biggest shipping company to test the possibilities of using green ammonia as a clean fuel to help transport green iron.
The non-binding MoU with Chinese shipping giant Cosco Shipping will see the two companies explore the construction and deployment of Cosco Shipping vessels, or co-owned vessels, which are powered by green ammonia, and which will be used to cut emissions in the shipping of iron ore and other mineral products.
Green ammonia and green iron remain two of the biggest markets for Fortescue, despite the recent admission that its ambitious green hydrogen production targets will not be met in the timeframe originally hoped.
The options for green hydrogen have narrowed, with cars, homes and other applications likely to be focused on battery electric options, but there are still many hard to abate industries that will need green hydrogen and its derivative es.
“The shipping industry plays a vital role in global trade however also contributes significantly to the world’s carbon emissions,” said Dino Otranto, CEO of Fortescue Metals, who attended the signing ceremony in Shanghai.
“This collaboration marks a significant step in decarbonising the shipping industry 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.”
The partnership will build on Fortescue’s existing research and development efforts to decarbonise shipping and the development of a green ammonia capable ship engine.
Working over 18 months at its Perth testing facility, Fortescue converted a four-stroke engine to run a blend of ammonia and diesel. Fortescue then installed an entire gas fuel delivery system and converted two of the four engines on the proof-of-concept Green Pioneer in Singapore to enable the vessel to run in dual-fuel mode on ammonia and diesel.
The Green Pioneer then sailed from its base in Singapore to Dubai for COP28 in late 2023 as a symbol demonstrating the technology solutions and regulatory changes needed to decarbonise shipping.
Three months later, in March, the Green Pioneer was awarded the Hydrogen Transport award at the World Hydrogen 2024 Awards and became the first of its kind to be certified to use ammonia, in combination with diesel, as a marine fuel.
A few days later, the Green Pioneer completed the world’s first use of ammonia, in combination with diesel in the combustion process, as a marine fuel in a fuel trial in the Port of Singapore.
