Energy company Raizen is set to work with engineering firm Wärtsilä looking into the use of ethanol as an alternative marine fuel.
The two companies have signed a decarbonisation agreement setting out plans for the ethanol study, they said in an emailed statement on Friday.
The use of green ethanol as fuel could reduce CO2 emissions on a standard voyage from Brazil to Europe by up to 80%, according to the statement.
"Ethanol has the potential of being a viable solution to help decarbonize the sector since it provides greater flexibility and optionality as the industry moves toward a combination of lower-emission fuel options," the companies said in the statement.
"With the International Maritime Organization's (IMO) Greenhouse Gas Strategy aiming to reduce carbon emissions from international shipping by 40% by 2030 and 70% by 2050 versus 2008 levels, ethanol can provide one more avenue to help achieve this target."
