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NorthStandard: Ethanol makes its case in maritime decarbonisation

NorthStandard expects to see an increase in the use of ethanol in the marine industry as demand increases for lower carbon fuels to meet maritime regulatory requirements, says Mark Smith.

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NorthStandard: Ethanol makes its case in maritime decarbonisation

Mark Smith, Loss Prevention Director Decarbonisation of global marine insurer NorthStandard explored the maritime case for a sustainable biofuel that is widely used as an automotive fuel additive:

In October, the International Maritime Organization is set to adopt a legally binding framework to reduce greenhouse gas (GHG) emissions from ships over 5,000 GT, pending entry into force in 2027. 

Including a new fuel standard and a global pricing mechanism for emissions, the framework is highly significant for the UN agency’s targets for global shipping to achieve net-zero emissions close to 2050, and interim carbon intensity targets for 2030 and 2040.

In the immediate term, however, ship operators looking to decarbonise by using sustainably sourced biofuels or similar alternatives could find that growing demand may outpace current supply. Ethanol, a sometimes overlooked-alternative fuel type, may therefore merit further consideration as the shipping industry seeks additional options.

Ethanol is already an established ingredient in automotive industry fuels. Forecourt pumps and fuel filling caps on many petrol engine cars now display E5 or E10 notation to indicate ethanol content of up to 10% (E10).  New cars even have E25 on their petrol caps. Evidently car makers are confident engines can cope with up to 25% (E25) ethanol content to create a lower carbon footprint. 

Given these developments, it is worth considering the potential for ethanol to play a larger role in the maritime industry.

Ethanol (CH₃CH₂OH), also known as ethyl alcohol, is a colourless, volatile and flammable organic compound commonly used as a fuel, solvent and in alcoholic beverages. It is also used as a biofuel (bioethanol) when made from renewable resources like corn, sugarcane, or agricultural waste. It is mostly produced by fermenting sugars derived from such crops, where yeast converts the sugars into ethanol and carbon dioxide. In principle, the carbon dioxide emitted when bioethanol is burnt is offset by the carbon absorbed in growing the plants.

NorthStandard expects to see an increase in the use of ethanol in the marine industry as demand increases for lower carbon fuels to meet FuelEU Maritime requirements and IMOs legally binding framework.  

Unlike some biofuels, bioethanol can be considered both renewable and sustainable as it is sourced from widely available crops. It burns cleaner than fossil fuels, thereby reducing CO2 emissions as well as SOx and particulate (PM) emissions. Lower GHG emissions are particularly the case when it is made from renewable sources including biomass and waste.

In addition, there is already available infrastructure for use – as ethanol is widely used in land-based transportation. Some fuelling and storage facilities could be adapted for marine use.

As in the automotive industry, ethanol can be blended with other fuels and blending with marine fuels is set to be tested shortly.  

However, there are acknowledged challenges when it comes to its use in the marine sector.  As is the case with most alternative fuels, ethanol has a 50% lower energy density than fossil fuels. Its energy density is also about 40% lower than biodiesels which could have an impact on engine performance and reduce operational range as vessels may not be able to carry enough fuel without higher volume tanks. 

Any lower range would likely require consideration in time charter party terms including speed and performance warranties.

Ethanol is also hygroscopic and can corrode tanks, engines, and pipelines not specifically designed for its use. Purification plants, filtration and transfer systems also need to be specifically designed to handle ethanol.

Biodiesels are more compatible with existing ship’s engine types (as “drop-in fuels”), but ethanol may require purpose built or modified ethanol-specific engines as a result. Operating these engines when built may also be a learning curve. 

Crew training and safety have also to be considered.

Ethanol has a low flashpoint fuel (13-15 °C), and vapours can accumulate, increasing explosion risk if there is improper ventilation.

The fuel also creates toxicity and health risks which require scenario-based training, including vapour leakage and emergency response. Ethanol fires also develop differently to hydrocarbon fires and require specialised firefighting equipment, procedures and personal protective equipment.

Pollution and spill behaviour are also factors.

Ethanol is water-soluble and disperses quickly in the marine environment but, unlike oil, it does not form a surface slick, making physical recovery challenging. It is biodegradable, but rapid breakdown can deplete oxygen in the water leading to hypoxic (low oxygen) conditions that are harmful to marine life.

The IMO and other maritime bodies are still developing guidelines for the regulation of alternative fuels such as ethanol and further clarity will be essential to encourage investment and its adoption as part of the IMO’s Zero or Net Zero (ZNZ) emissions technology strategy.

While  ethanol may not be a perfect alternative fuel to help decarbonise shipping, short supplies of biodiesel to meet the demand created by FuelEU Maritime and the IMO ZNZ strategy suggest it can be part of the mix. 

In summary, as biofuels continue to find a place in maritime decarbonisation, ethanol is a viable option worth considering for open-minded ship operators.

 

Photo credit: NorthStandard
Published: 6 June, 2025

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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