Vale has signed an agreement with Shandong Shipping Corporation to develop what it says will be the world’s first ocean-going vessels powered primarily by ethanol, marking a new pathway for maritime decarbonisation.
The ships, due for delivery from 2029, will be designed as triple-fuel units capable of running on ethanol, methanol and conventional bunker fuel, with future retrofit options for LNG and ammonia. Vale said the use of second-generation ethanol could reduce greenhouse gas emissions by around 90% on a well-to-wake basis compared to heavy fuel oil.
The agreement covers two 340-metre Guaibamax vessels with a capacity of 325,000 tonnes under 25-year contracts, with options for additional units. The vessels will also feature rotor sails and other energy efficiency technologies aimed at cutting fuel consumption and emissions further.
Vale said the project forms part of its broader multi-fuel and Ecoshipping strategy, as it seeks to reduce Scope 3 emissions tied to maritime transport.
