Vale commissions first ethanol-powered ocean-going vessel

April 15, 2026 |

In Brazil, mining giant Vale has struck a deal with Shandong Shipping Corporation to build the world’s first ethanol-fueled ocean-going vessels, with the first ship set to enter service in 2029.

The 340-meter Guaibamax vessels, each carrying 325,000 tonnes of iron ore, will run primarily on ethanol but can also burn methanol and heavy fuel oil, with retrofit options for LNG and ammonia. Five rotor sails will supplement propulsion by harvesting wind energy.

Vale says second-generation ethanol can cut carbon emissions by up to 90% compared to heavy fuel oil on a well-to-wake basis. The agreement covers two ships on 25-year contracts, with options for more.

The deal extends Vale’s existing decarbonization push. The company has invested $1.4 billion since 2020 reducing emissions across its operations, and already operates some of the most fuel-efficient bulk carriers afloat.

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Category: Sustainable Marine Fuels

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