How ethanol is expanding shipping’s fuel choices
Ethanol is beginning to gain momentum as a viable option for reducing greenhouse gas emissions in shipping. A growing number of projects and technical developments are helping to move the fuel from regional discussions to global considerations.
For years, ethanol sat on the periphery of the maritime fuel debate. Whilst the orderbook shows that LNG and, more recently, methanol have seen growing uptake in the global fleet, ethanol has remained largely confined to regional discussions despite being the world’s most widely produced liquid biofuel.
That picture is beginning to change.
Why interest is growing in ethanol as marine fuel
Part of ethanol’s appeal is its maturity outside shipping. Decades of use in road transport have created extensive production capacity, established supply chains, and well-developed fuel logistics. At the same time, increasing focus on lifecycle emissions and regulations such as FuelEU Maritime are directing attention towards fuels capable of delivering meaningful well-to-wake greenhouse gas reductions.
However, production scale and emissions performance alone do not explain the growing interest. Ethanol is entering the maritime conversation at a time when the industry is searching for practical pathways that can support decarbonization without locking companies into a single long-term fuel choice.
Why cargo owners are investing in ethanol-powered ships
Among those exploring ethanol’s potential is VALE, a mining company and cargo owner which sees the fuel as part of its broader decarbonization strategy.
That commitment is already translating into projects. VALE has partnered with Shandong Shipping to build at least two Guaibamax vessels equipped with rotor sails and powered by ethanol, with delivery expected in 2029, and is evaluating the conversion of methanol-fuelled vessels into tri-fuel ships capable of operating on methanol, ethanol, and conventional fuel.
For VALE, a central focus of these projects is how they support the company in maintaining flexibility, thus creating options in an uncertain market. This reflects a broader industry trend towards preserving fuel flexibility whilst continuing to reduce emissions.
“Designing and constructing new ships is the most cost-effective and integrated opportunity to incorporate technological advances in our decarbonization program,” says Rodrigo Bermelho, Shipping Director at VALE. “This approach provides flexibility during regulatory and market uncertainty, enabling VALE to advance decarbonization whilst maintaining different strategic options.”
Shared technology, greater flexibility: the growing ethanol–methanol opportunity
One of the most interesting aspects of ethanol’s emergence is that it is not developing in isolation.
The fuel enters the maritime conversation at a time when investments in methanol technology are accelerating. The two alcohol fuels share several characteristics, creating opportunities to build on existing engine developments, fuel systems, and operational experience rather than requiring a completely separate technological pathway.
“Ethanol shares some characteristics with methanol and may offer additional flexibility for certain vessel applications over time,” says Mario Barbosa, General Manager Latin America at Wärtsilä.
This connection could prove important as shipowners seek to maintain flexibility in an increasingly uncertain fuel landscape. Rather than committing to a single fuel pathway, they may be able to leverage technologies and vessels capable of accommodating multiple future fuel options.
Ethanol requires own technical assessment
Whilst the similarities between methanol and ethanol create opportunities, industry experts stress that the two fuels should not be treated identically. Safety considerations also remain important. However, ethanol benefits from the fact that alcohol fuels are already covered by established IMO safety frameworks, whilst growing operational experience with methanol is helping the industry better understand the safe handling and use of alcohol-based marine fuels.
“Engine parameters, fuel injection, fuel system specifications, and safety considerations need to be carefully assessed for each vessel and application,” says Barbosa. “Ethanol brings its own characteristics, including differences in energy content, which means optimization is important to support reliable and efficient operation.”
In practice, this means that ethanol benefits from lessons learned through methanol adoption but still requires its own technical assessment. Fuel system design, engine configuration, and operational requirements must all be considered when evaluating ethanol for a specific vessel or trade.
New vessel designs keep fuel options open in an uncertain market
The growing link between ethanol and methanol is already influencing vessel design decisions.
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.
“There is an intense debate within the maritime sector regarding the most effective solutions to meet the decarbonization standards stipulated by the IMO,” says Soares. “In this regard, the new vessels we’re commissioning are designed to use both traditional fuels and biofuels, such as ethanol, which is produced on a large scale in Brazil.”
“From an operational standpoint, the technology for methanol-powered vessels is already available and fully functional. Since both alcohols are similar, only minor software and engine modifications are required to operate using ethanol.”
Economics and availability will determine scale of ethanol
Such developments and the growing number of projects and vessels specifications suggest the conversation around ethanol is moving beyond the conceptual stage. The next question is whether ethanol can compete economically and be supplied at scale. However, wider adoption will still depend on factors such as fuel availability, bunkering infrastructure, regulatory treatment, and economics.
“The relevant question is no longer simply the cost of the fuel but the cost of reducing emissions, whilst maintaining regulatory compliance,” says Jason Stefanatos, Global Decarbonization Director at DNV Maritime. “In that context, fuels such as ethanol may become increasingly attractive where they can deliver meaningful greenhouse-gas reductions whilst leveraging existing infrastructure, technologies, and supply chains.”
Availability will be equally important. Although ethanol production is already substantial, marine-specific supply chains and bunkering infrastructure remain in the early stages of development. Production growth may help support wider adoption. According to Brazil’s Energy Research Office (EPE), ethanol production in Brazil could reach 51 billion litres by 2035, representing an increase of around 30% compared with current production. Future uptake will depend not only on vessel technology, but also on the industry’s ability to make fuel available where and when it is needed.
Understanding the sustainability of ethanol across different production pathways
As interest in ethanol grows, so too does scrutiny of how it is produced. Like many biofuels, ethanol sits at the centre of a long-running debate around land use, water use, and competition with food production.
According to Flavio Haruo Mathuiy, former Brazilian Navy captain and member of Brazil’s coordination commission for IMO affairs, these discussions are important to ensure that biofuels are produced in a sustainable way. Historically, the production of Brazilian sugarcane ethanol has always been tied to sugar – an essential food staple and a key input for the food and biotechnology industries. Likewise, and more recently, corn ethanol production has been associated with by-products destined for animal feed, such as dried distillers grains (DDG) and corn oil.
“The food-versus-fuel discussion cannot be viewed in isolation,” he says. “Different production pathways have very different sustainability characteristics, and in Brazil, ethanol production is increasingly linked to integrated agricultural systems, co-products, and food production simultaneously that can reduce pressure on food supplies whilst delivering significant emissions reductions.”
Mathuiy argues that assessing ethanol’s sustainability requires a lifecycle perspective that considers how and where the fuel is produced, rather than treating all ethanol pathways as equal.
Regulation will shape the future uptake of ethanol
Technology, fuel availability, and sustainability alone will not determine ethanol’s future role in shipping. How different production pathways are treated under regulatory frameworks may prove just as important.
Recent progress at IMO, together with incentives created by regional frameworks such as FuelEU Maritime, which include the recognition of specific ethanol pathways within lifecycle assessment discussions, has helped strengthen confidence in the fuel’s potential role. However, wider adoption will require continued alignment between IMO requirements, regional regulations, and sustainability certification systems.
According to Mathuiy, achieving greater harmonization between these frameworks will be essential if ethanol is to compete effectively with other low-GHG fuel options. Ultimately, the competitiveness of ethanol may depend not only on how the fuel is produced, but also on how those production pathways are recognized under future lifecycle emissions methodologies and compliance regimes.
Can ethanol scale as a marine fuel for shipping decarbonization?
Like other alternative fuels, ethanol faces both opportunities and challenges as a decarbonization pathway. Questions remain around infrastructure, sustainability, and regulation, and its future role will depend on how these challenges evolve.
Yet momentum is clearly building. As the orderbook shows, real-world projects are moving forward, ethanol is appearing in vessel specifications, and growing experience with methanol is helping to lower some of the barriers to adoption.
As shipping explores multiple pathways to lower emissions, ethanol is beginning to emerge as more than a niche regional fuel. Whether it ultimately achieves large-scale adoption remains uncertain, but for a fuel that until recently sat on the periphery of the maritime fuel debate, its trajectory is increasingly difficult to ignore.
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