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

With vessels operating for 25 to 30 years and only around 4% of the fleet renewed annually, newbuild decisions made over the coming decade will establish much of the engine capacity available in 2050, Global Centre for Maritime Decarbonisation said on Thursday (17 September). 

Yet having the capacity to consume a new fuel does not guarantee its uptake. Dual-fuel engines allow shipowners to switch between conventional fuels and the selected new fuel as economics and regulations evolve; continued fuel competitiveness is therefore critical to what vessels ultimately consume.

These are among the findings of Navigating the maritime fuel transition: How fuel economics, regulations, and fleet decisions shape the future bunkering landscape, based on a model jointly developed by the GCMD and Boston Consulting Group (BCG).

The model illustrates this dynamic in its base scenario. With the Tier-2 penalty under the IMO Net-Zero Framework held at USD 380/tCO2e through 2050, methanol dual-fuel engines account for around 10% of fleet engine capacity in 2050, but methanol represents just 2% of fleet energy consumption. With conventional fuels remaining more economical under this regulatory regime, methanol dual-fuel vessels continue to operate on fuels cheaper than methanol (Figure 1).

A global carbon price of USD 700/tCO2e materially changes the transition

The base scenario demonstrates how fuel economics can limit uptake even when vessels have the capacity to use new fuels. This picture changes if the IMO Tier-2 penalty rises to USD 700/tCO2e by 2050, at which point new fuels, including dropins, reach approximately 61% of fleet energy consumption (Figure 1).

By contrast, EU regulations alone will not drive a marked global shift, as they cover only around 20% of international shipping’s energy demand.

Overall cost of using e-methanol and e-ammonia is near parity

While a stronger global carbon price can accelerate the shift towards new fuels, the model does not point to a clear cost winner between e-methanol and e-ammonia.

E-ammonia’s production cost advantage is largely offset by higher logistics costs arising from its toxicity, including specialised crew training, larger exclusion zones, and more complex bunkering. As a result, the overall cost (Figure 2) of using e-ammonia and e-methanol is near parity through to 2050.

Professor Lynn Loo, CEO of GCMD, said: “Many vessels ordered over the coming decade will still be operating in 2050. Shipowners are therefore making long-lived engine choices before the relative economics of future fuels are clear. 

“Our modelling puts into perspective just how difficult closing the cost gap between new and conventional fuels will be. The carbon price required to close this gap is substantial. And achieving it will be particularly challenging in today’s geopolitical environment. Understanding the signposts that could change these economics will be critical to the decisions the industry makes today.”

Anand Veeraraghavan, Managing Director & Senior Partner at BCG, said: “The maritime fuel transition is being shaped as much by policy and cost uncertainty as by technology readiness. 

“Rather than offer a single prediction, our approach with GCMD maps how sensitive each fuel pathway’s competitive position is to a handful of critical variables — policy scenarios, key cost drivers, and potential restrictions. Our hope is that this gives shipowners, fuel suppliers, port operators, and infrastructure investors a practical tool to stress-test their own fuel strategies as conditions change.”

Photo credit: Global Centre for Maritime Decarbonisation
Published: 18 September, 2026

SGMF on Wednesday (16 September) has published its latest Life Cycle Assessment (LCA) on methanol as a marine fuel, highlighting the significant greenhouse gas (GHG) reduction potential of renewable and synthetic methanol production pathways.

The study evaluates 15 methanol production pathways and finds that methanol produced using renewable energy sources can deliver substantial emissions reductions, reinforcing its potential role in shipping’s decarbonisation journey.

The publication follows SGMF’s third edition LNG Life Cycle Assessment, released earlier this year, and its inaugural ammonia LCA, published in 2024. Together, the three studies provide stakeholders with a comprehensive, science-based comparison of the emissions performance of key alternative marine fuels.

The methanol LCA study was conducted by WSP and consistent with earlier SGMF’s studies, this one is critically peer reviewed by industry experts and leading academics and covers multiple pathways, reflecting the distinct carbon intensities of each one. 

The emissions calculations are based on the performance of a wide range of engine types, including medium-speed 4-stroke and low-speed 2-stroke engines.

SGMF noted that LCAs provide a snapshot of industry performance at a specific point in time. 

Given the rapid pace of innovation in alternative fuels, the organisation said regular updates are necessary to ensure future studies accurately reflect technological developments and the latest GHG intensity data.

The report also recognised that a range of additional production-specific pathways, including co-processing approaches, could offer further emissions reduction opportunities and may warrant further assessment.

Mark Bell, General Manager and COO of SGMF, said: “SGMF is the only fuel-agnostic NGO with a proven track on providing clear and fact-based information to the maritime industry, covering technical and environmental aspects of future marine fuels.

“We therefore take pride in being the first organisation that conducted a high-quality full LCA on methanol as a marine fuel, complementing our portfolio of marine fuel LCA’s.”

Note: The full LCA report on methanol as a marine fuel can be found here. 

Related: SGMF’s LCA finds up to 29% TtW GHG emissions reductions when using LNG bunker fuel

Photo credit: CHUTTERSNAP from Unsplash
Published: 17 September, 2026