Vale Plans Ethanol-Fuelled Bulk Carriers from 2029

by Ship & Bunker News Team
Friday April 10, 2026

Brazilian mining firm Vale has signed an agreement with Shandong Shipping Corporation to build the world’s first ethanol-fuelled bulk carriers.

The deal covers two 325,000 DWT Guaibamax vessels under 25-year contracts, with options for additional units, Vale said in a statement on its website on Thursday.

The first ship could start operations from 2029.

The vessels will be designed as triple-fuel ships, capable of running on ethanol, methanol and conventional bunker fuel, with future retrofit potential for LNG and ammonia.

On a well-to-wake basis, ethanol could reduce greenhouse gas emissions by up to 90% compared with heavy fuel oil, depending on the fuel type.

Vale has been exploring the use of ethanol as a marine fuel.

In February, the company signed a cooperative agreement with engine maker Everllence to develop a dual-fuel ethanol marine engine.

The company is also the founding member of the Global Ethanol Association, which seeks to promote ethanol as a marine fuel.

Interest in ethanol as a marine fuel has been growing, with discussions at the IBIA Annual Convention in Hong Kong last year highlighting increased attention on the fuel, particularly as a way to address the potential shortfall in biofuel demand.

Ship & Bunker News Team
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