Key facts
- Ethanol is being considered as a marine fuel due to its potential to lower emissions.
- Engine technology is available and adaptable for ethanol-fueled ships.
- Vale has ordered the first ethanol-fueled two-stroke engines for its dry bulk charter vessels.
- Brazilian corn ethanol has a low emissions factor of 20.8gCO2eq/MJ, significantly lower than VLSFO.
- Ethanol is widely available in markets like Brazil and the US at a price competitive with conventional fuels.
- Certification under FuelEU Maritime remains a challenge for biofuels made from food crops.
Ethanol is gaining traction as a potential marine fuel, offering a pathway to reduce greenhouse gas emissions in the shipping industry. Engine manufacturers like WinGD have demonstrated the feasibility of using ethanol, with early tests conducted in 2014 and technology adaptable from their methanol engines. This development is underscored by significant industry investment, such as Vale's order for the world's first ethanol-fueled two-stroke engines for its Newcastlemax vessels, which will be chartered by Shandong Shipping.
The International Maritime Organization's (IMO) Marine Environmental Protection Committee has recognized Brazilian 'second growth' corn ethanol by approving its inclusion in the Lifecycle Analysis Guidelines for Marine Fuels, assigning it a low emissions factor of 20.8gCO2eq/MJ. This is more than four times lower than Very Low Sulfur Fuel Oil (VLSFO), positioning ethanol as a strong contender for meeting future net-zero targets.
Beyond its environmental benefits, ethanol's availability and competitive pricing are key advantages. Large-scale production in regions like Brazil and the US, coupled with slower-than-anticipated uptake in the automotive sector, has made the fuel readily accessible. While challenges remain, particularly regarding certification under regulations like FuelEU Maritime for biofuels derived from food crops, the broader alcohol fuel family, including methanol, is seeing growing momentum. The US Grains & BioProducts Council (USGBC) and the Methanol Institute are actively engaging stakeholders to foster collaboration and ensure a level playing field for these alternative marine fuels.