Vale, Shandong Shipping Sign Deal for Ethanol-Powered Carriers

Brazilian mining firm Vale has signed an agreement with China's Shandong Shipping Corporation to build the world’s first ocean-going vessels powered primarily by ethanol, as part of efforts to cut emissions in maritime transport.

The agreement covers the construction of two Guaibamax bulk carriers under 25-year contracts, with delivery scheduled from 2029 and options for additional vessels.

The ships will be capable of running on ethanol, methanol and conventional bunker fuel, with design provisions allowing future conversion to liquefied natural gas or ammonia.

Each vessel will measure about 340 meters in length and have a cargo capacity of 325,000 tones.

Vale said the use of ethanol could reduce greenhouse gas emissions by around 90% compared with heavy fuel oil, depending on the fuel type and lifecycle assumptions.

The vessels will also incorporate energy-efficiency technologies including rotor sails, hydrodynamic devices, shaft generators, frequency inverters and silicone coatings, contributing to further emissions reductions.

"Vale’s pioneering efforts towards decarbonization in maritime transport are guided by a strategy that combines flexibility and efficiency. The use of ethanol as fuel in the ships that transport our ore, combined with the adoption of rotor sails to harness wind energy, places Vale in a unique position for the energy transition in global shipping over the coming decades, whilst driving similar initiatives in the sector,” said Rodrigo Bermelho, Vale’s Director of Shipping.

Vale said the project forms part of its broader Ecoshipping program, aimed at improving fleet efficiency and reducing emissions across its value chain.

The company has committed to reducing Scope 3 emissions by 15% by 2035, with maritime transport accounting for a significant share of those emissions.