Classification society DNV on Thursday (17 September) published a Maritime Impact article, examining why interest in ethanol is growing, drawing on insights from cargo owners, engine manufacturers, and other industry stakeholders.
The article explores recent vessel projects, technology developments, and the factors that will influence future uptake, including economics, fuel availability, sustainability, and regulation:
For years, ethanol sat on the periphery of the maritime fuel debate. Whilst the orderbook shows that LNG and, more recently, methanol have seen growing uptake in the global fleet, ethanol has remained largely confined to regional discussions despite being the world’s most widely produced liquid biofuel.
That picture is beginning to change.
Why interest is growing in ethanol as marine fuel
Part of ethanol’s appeal is its maturity outside shipping. Decades of use in road transport have created extensive production capacity, established supply chains, and well-developed fuel logistics. At the same time, increasing focus on lifecycle emissions and regulations such as FuelEU Maritime are directing attention towards fuels capable of delivering meaningful well-to-wake greenhouse gas reductions.
However, production scale and emissions performance alone do not explain the growing interest. Ethanol is entering the maritime conversation at a time when the industry is searching for practical pathways that can support decarbonization without locking companies into a single long-term fuel choice.
Why cargo owners are investing in ethanol-powered ships
Among those exploring ethanol’s potential is VALE, a mining company and cargo owner which sees the fuel as part of its broader decarbonization strategy.
That commitment is already translating into projects. VALE has partnered with Shandong Shipping to build at least two Guaibamax vessels equipped with rotor sails and powered by ethanol, with delivery expected in 2029, and is evaluating the conversion of methanol-fuelled vessels into tri-fuel ships capable of operating on methanol, ethanol, and conventional fuel.
For VALE, a central focus of these projects is how they support the company in maintaining flexibility, thus creating options in an uncertain market. This reflects a broader industry trend towards preserving fuel flexibility whilst continuing to reduce emissions.
“Designing and constructing new ships is the most cost-effective and integrated opportunity to incorporate technological advances in our decarbonization program,” says Rodrigo Bermelho, Shipping Director at VALE. “This approach provides flexibility during regulatory and market uncertainty, enabling VALE to advance decarbonization whilst maintaining different strategic options.”
Shared technology, greater flexibility: the growing ethanol–methanol opportunity
One of the most interesting aspects of ethanol’s emergence is that it is not developing in isolation.
The fuel enters the maritime conversation at a time when investments in methanol technology are accelerating. The two alcohol fuels share several characteristics, creating opportunities to build on existing engine developments, fuel systems, and operational experience rather than requiring a completely separate technological pathway.
“Ethanol shares some characteristics with methanol and may offer additional flexibility for certain vessel applications over time,” says Mario Barbosa, General Manager Latin America at Wärtsilä.
This connection could prove important as shipowners seek to maintain flexibility in an increasingly uncertain fuel landscape. Rather than committing to a single fuel pathway, they may be able to leverage technologies and vessels capable of accommodating multiple future fuel options.
Ethanol requires own technical assessment
Whilst the similarities between methanol and ethanol create opportunities, industry experts stress that the two fuels should not be treated identically. Safety considerations also remain important. However, ethanol benefits from the fact that alcohol fuels are already covered by established IMO safety frameworks, whilst growing operational experience with methanol is helping the industry better understand the safe handling and use of alcohol-based marine fuels.
“Engine parameters, fuel injection, fuel system specifications, and safety considerations need to be carefully assessed for each vessel and application,” says Barbosa. “Ethanol brings its own characteristics, including differences in energy content, which means optimization is important to support reliable and efficient operation.”
In practice, this means that ethanol benefits from lessons learned through methanol adoption but still requires its own technical assessment. Fuel system design, engine configuration, and operational requirements must all be considered when evaluating ethanol for a specific vessel or trade.
Note: The full article by DNV can be found here.
Photo credit: Venti Views on Unsplash
Published: 21 September, 2026