The mining company VALE, as a pioneer in the use of ethanol fuel in the shipping industry, has partnered with Shandong Shipping to construct at least two Guibamax-type ships with rotor sails and ethanol fuel. These projects are aimed at reducing greenhouse gas emissions and increasing fuel choice flexibility in an uncertain market.
Growing Interest in Ethanol as a Marine Fuel
Ethanol is emerging as an attractive option for reducing greenhouse gas emissions in the shipping industry. Its use in road transport has led to the establishment of extensive production capacity and suitable supply chains over decades. With the increasing focus on reducing greenhouse gas emissions and regulations like FuelEU Maritime, attention is growing towards fuels that can significantly reduce emissions.
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However, the scale of production and performance of emissions alone cannot explain the growing motivations. Ethanol is being introduced to the shipping industry at a time when this sector is seeking practical pathways to reduce carbon, allowing companies to access diverse fuels.
VALE's Projects for Sustainable Shipping
Among the companies that have recognized the potential of ethanol is VALE, which sees this fuel as part of its overall carbon reduction strategy. The company has already initiated projects that include collaboration with Shandong Shipping to build new ships. These vessels are expected to be operational by 2029.
According to Rodrigo Bramelo, VALE's transportation manager, the design and construction of new ships provide an economic and integrated opportunity to leverage technological advancements in the company's carbon reduction program. This approach allows the company to continue progress in carbon reduction under uncertain market conditions and regulations.
Additionally, ethanol is entering the shipbuilding market at a time of increased investment in methanol technology. These two alcoholic fuels share similar characteristics that could create opportunities for improving fuel systems and practical experiences.
In May 2026, the dual-fuel container ship "Eco Levant" refueled with ethanol for the first time in Rotterdam. This ship uses ethanol as a component in a blend with 90 percent bio-methanol.
Technology development for methanol-fueled ships is currently available and fully operational. Given the similarities between ethanol and methanol, only minor adjustments are required for compatibility.
