The world’s first ethanol-powered oceangoing vessels would cut greenhouse gas emissions by around 90%

Credit: Vale

Vale and Shandong Shipping have entered into an agreement for new ethanol-powered Guaibamax vessels, which are scheduled for delivery starting in 2029. 

The agreement marks the first in the maritime industry that ethanol will be used as the primary fuel on an oceangoing vessel.

The agreement includes 25-year contracts for the construction of two vessel, to be built by CSSC Qingdao Beihai Shipbuilding, with an option for additional ships. The adoption of these second-generation Guaibamax vessels, which are 340 meters long and have a capacity of 325,000 tonnes, is part of the Brazilian mining company’s multi-fuel strategy.

In addition to ethanol, these vessels will be capable of using methanol and heavy fuel oil, and their design also allows for conversion to use LNG or ammonia. 

"The use of ethanol as fuel in the ships that transport our ore, combined with the adoption of rotor sails to harness wind energy, places Vale in a unique position for the energy transition in global shipping over the coming decades, whilst driving similar initiatives in the sector,” said Rodrigo Bermelho, Vale’s Director of Shipping. 

The new ethanol-powered ships will be similar to 10 other dual-fuel vessels (methanol and fuel oil) that Shandong will deliver to Vale from 2027 onwards.

As part of Vale’s Ecoshipping program, such technologies and low-carbon fuels are being tested to drive maritime decarbonization and boost fleet efficiency. Since 2011, Vale has chartered first-generation Valemax vessels, followed by second-generation Valemax in 2018 and the first Guaibamax vessels in 2019. These highly efficient ships deliver up to 41% fewer CO₂ equivalent emissions compared with standard capesize carriers.