Shipping giants such as Maersk are exploring ethanol as a marine fuel

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The 25th National \"Safety Production Month\" in 2026: Everyone talks about safety, and everyone knows how to handle emergencies; identifying and addressing risks and hazards. -------------------------------------------------- Shipping companies such as Maersk and Vale are exploring ethanol as a fuel for ships. Ethanol is readily available at low costs, is compatible with methanol engines, and is expected to be commercialized by 2027. Some large shipping companies are beginning to pay attention to the use of ethanol in future fuel mixes. Adequate supply and relatively low prices help drive its adoption. It is compatible with existing methanol-powered ship engines. Shipping companies including Maersk and the mining giant Vale are turning to ethanol as a marine fuel to reduce emissions, as it is readily available at lower costs and is more attractive than other low-carbon fuels; broader commercial use is expected to begin by 2027. The use of ethanol in shipping could open up new demand channels for this fuel. Currently, some ** have already blended ethanol into gasoline; it also provides shipowners with another way to reduce their consumption of conventional fuels and thereby meet emission reduction targets. As tensions in the Middle East and the closure of the Strait of Hormuz, an important waterway, highlight the risks associated with traditional fuel supplies, the global shipping industry is under increasing pressure to cope with the uncertainties related to oil price fluctuations, which has drawn new attention to this issue. The Global Centre for Green Fuel (GCGF) said that the volatility of fuel prices has underscored the need to achieve long-term fuel diversification. In such an environment, the advantage of ethanol is that it can be introduced gradually – by mixing it with methanol and using it on ships that are already equipped to use methanol – without the need for major modifications or significant capital investment in a single fuel strategy. The shipping industry has been testing alternatives to fuel oil, including liquefied natural gas, ammonia, biodiesel, and methanol. Ships equipped with methanol engines conducted ethanol trials. Shipping group Maersk (MAERSKb.CO) completed two voyages in the first quarter using 100% ethanol for the first time, as well as conducting related tests. Previously, the company had tested mixed fuels of 10% and 50% ethanol on a vessel that could operate on methanol or fuel. Maersk views ethanol as a complement to methanol, which has emerged in recent years as an alternative marine fuel, although the supply of green methanol remains limited. Maersk told Reuters that exploring ethanol is significant because it already has a mature global market and existing infrastructure, and its properties are similar to those of methanol. Singapore-based shipping group X-Press Feeders said it also tested a marine fuel composed of 10% ethanol and 90% methanol on a container ship in Rotterdam. Brazil-based Vale said it has signed a contract with China’s Shandong Shipping Group to build two vessels capable of running on ethanol, methanol, or heavy fuel oil. According to engine manufacturers, including Switzerland’s Everllence, ethanol can be used directly in existing methanol-compatible engines without the need for major modifications. According to DNV data, the number of ships capable of using methanol is expected to rise from 107 in 2025 to 450 by 2030, of which around 313 will be newly built vessels that have already been ordered. GCGF said that green methanol made from renewable resources faces supply constraints in the short term. Maersk has made it clear that the supply of methanol is one of the main challenges to expanding the use of alternative fuels, and it is for this reason that ethanol was introduced. The United States and Brazil have abundant corn resources. The main raw material for ethanol is corn, and the United States and Brazil, as major producers, have an ample supply of corn. Traditional methanol is made from fossil fuels. The U.S. Department of Agriculture predicts that domestic corn supply will reach 17 billion bushels in the 2025-2026 season, hitting a record high thanks to increased yields per acre. The Renewable Fuels Association, formerly known as the Ethanol Producers Association of the United States, said that if ethanol were to capture a 5% share of the global marine fuel market, it would lead to an increase in demand by 4 billion to 5 billion gallons, while corn demand would rise by 1.5 billion bushels. The U.S. biofuel trade group Growth Energy has lobbied for tax policies to encourage greater use of ethanol. Energy efficiency of ethanol. The energy contained in each kilogram of ethanol is about 35% higher than that in methanol, which means less fuel is required for ships to travel the same distance. However, ethanol still lags behind traditional fuels in terms of energy content; to achieve the same level of energy output, its weight needs to increase by about 50%. Depending on location and quantity, the cost of ethanol is roughly on par with traditional low-sulfur fuel oil (LSFO), but it is cheaper than green methanol. According to data from the U.S. Grains and BioProducts Council, as of early June 2026, the cost of ethanol was approximately $700 per ton when calculated based on shipping costs from the United States, while it exceeded $800 per ton when calculated based on import prices in Asia. Industry insiders say that in comparison, the cost of LSFO in Asia exceeds $750 per ton, while the price of green methanol can easily exceed $1,000 per ton. It is expected that in the next 12 to 24 months, more commercial ethanol fuel bunkering operations will emerge. Santos Port in Brazil and Singapore, a major global bunkering hub, will likely be among the first to do so. Singapore has been developing infrastructure and establishing relevant standards to facilitate the large-scale adoption of various alternative marine fuels.