Ethanol Gains Momentum as Shipping Fuel Option

Ethanol is beginning to garner attention as a potential option for reducing greenhouse gas emissions within the shipping industry, according to Hellenic Shipping News Worldwide. Despite being the most widely produced liquid biofuel globally, ethanol has historically been confined to regional discussions within the maritime sector, while LNG and methanol have seen greater uptake.

Several factors contribute to the increasing interest in ethanol as a marine fuel. Its long-standing use in road transport has resulted in established production capacity, supply chains, and logistical infrastructure. Furthermore, a growing focus on lifecycle emissions and regulations, such as FuelEU Maritime, is directing attention towards fuels that can deliver significant well-to-wake greenhouse gas reductions. The publication notes that ethanol is entering the maritime discussion as the industry seeks practical decarbonisation pathways that offer flexibility without committing companies to a single long-term fuel choice.

Cargo Owners and Fuel Flexibility

Mining company VALE is exploring ethanol's potential as part of its decarbonisation strategy. VALE has partnered with Shandong Shipping to build at least two Guaibamax vessels equipped with rotor sails and designed to operate on ethanol, with delivery anticipated in 2029. The company is also evaluating the conversion of methanol-fuelled vessels into tri-fuel ships capable of operating on methanol, ethanol, and conventional fuel.

Rodrigo Bermelho, Shipping Director at VALE, stated that designing new ships offers the most cost-effective opportunity to integrate technological advances into their decarbonisation programme. He added that this approach provides flexibility amid regulatory and market uncertainty, allowing VALE to advance decarbonisation while maintaining strategic options. This reflects a broader industry trend towards preserving fuel flexibility while working to reduce emissions.

Shared Technology with Methanol Creates Opportunities

Ethanol's emergence is linked to accelerating investments in methanol technology, as the two alcohol fuels share several characteristics. This creates opportunities to build upon existing engine developments, fuel systems, and operational experience. In May 2026, the dual-fuel container feeder vessel "Eco Levant" completed its first bunkering of ethanol in Rotterdam, where it uses a blend with 90 per cent bio-methanol.

Mario Barbosa, General Manager Latin America at Wärtsilä, noted that ethanol shares some characteristics with methanol and may offer additional flexibility for certain vessel applications. This connection could be significant for shipowners aiming to maintain flexibility in an uncertain fuel landscape, potentially allowing them to leverage technologies and vessels compatible with multiple future fuel options.

While the similarities between methanol and ethanol offer advantages, industry experts caution against treating them identically. Each fuel requires its own technical assessment, considering differences in energy content. Engine parameters, fuel injection, fuel system specifications, and safety considerations must be evaluated for each specific vessel and application. However, ethanol benefits from established IMO safety frameworks for alcohol fuels, and growing operational experience with methanol is enhancing understanding of safe handling for alcohol-based marine fuels.

According to Jones Soares, Shipping Operations Director at Transpetro, new vessels are increasingly being specified with the flexibility to use both conventional fuels and biofuels such as ethanol. He highlighted that technology for methanol-powered vessels is already available, and due to the similarity between the two alcohols, only minor software and engine modifications are typically required for ethanol operation.

Economic and Availability Factors

The move towards ethanol is progressing beyond conceptual discussions. However, its wider adoption will depend on factors including fuel availability, bunkering infrastructure, regulatory treatment, and economics. Jason Stefanatos, Global Decarbonization Director at DNV Maritime, commented that the relevant question is shifting from fuel cost to the cost of emissions reduction while maintaining regulatory compliance.

In this context, fuels like ethanol could become increasingly attractive where they offer meaningful greenhouse gas reductions and can utilise existing infrastructure, technologies, and supply chains. While global ethanol production is substantial, its future uptake in shipping will also be contingent on the industry's capacity to ensure consistent fuel supply, Hellenic Shipping News Worldwide reported.