Posted on April 13, 2026
By Mike Schuler
Brazilian mining giant Vale is pushing the boundaries of maritime decarbonization with plans to deploy the world’s first ocean-going vessel powered primarily by ethanol—a move that could slash greenhouse gas emissions by up to 90%.
The company announced it has signed an agreement with Shandong Shipping Corporation to build a new generation of “Guaibamax” bulk carriers, marking the first time ethanol will be used as the main fuel on a deep-sea vessel. The first ship is expected to enter service in 2029.
The vessels will be massive by any standard—stretching 340 meters in length with a carrying capacity of 325,000 tonnes—and will feature a flexible, multi-fuel design. In addition to ethanol, they will be capable of running on methanol and conventional bunker fuel, with future retrofit options for LNG and ammonia.
Vale says the real breakthrough lies in ethanol’s emissions profile. When assessed on a full lifecycle “well-to-wake” basis, second-generation ethanol could cut carbon emissions by around 90% compared to traditional heavy fuel oil, the industry’s dominant fuel.
The project forms part of Vale’s broader strategy to decarbonize its logistics chain, particularly the shipping segment, which represents a major share of its Scope 3 emissions. The company has already committed to reducing these emissions by 15% by 2035.
“This is about combining flexibility and efficiency,” said Rodrigo Bermelho, Vale’s Director of Shipping. “Using ethanol alongside wind-assisted propulsion puts us in a strong position for the energy transition.”
Each vessel will also be equipped with five rotor sails to harness wind energy, along with a suite of efficiency upgrades including optimized hull design, shaft generators, advanced coatings, and frequency-controlled systems. Collectively, these improvements are expected to reduce emissions by an additional 15% compared to the current generation of Very Large Ore Carriers (VLOCs).
The ethanol-powered ships will follow a series of 10 dual-fuel (methanol and heavy fuel oil) vessels already on order from Shandong, scheduled for delivery starting in 2027.
The initiative is part of Vale’s “Ecoshipping” program, a long-running R&D effort aimed at accelerating maritime decarbonization. Since 2020, the company has invested approximately $1.4 billion in emissions reduction across its operations, including trials of ethanol in trucks and locomotives.
While alternative fuels like ammonia and methanol have dominated industry headlines, Vale’s ethanol bet introduces a new contender—one that could leverage existing biofuel supply chains while offering near-term emissions reductions.
If successful, the project could open a new pathway for bulk shipping’s energy transition—one fueled not just by innovation, but by a surprising source: alcohol.
