DNV Examines Ethanol’s Emerging Role in Shipping’s Fuel Mix

DNV has examined the growing interest in ethanol as a marine fuel, highlighting recent vessel projects, engine technology developments and the factors that could determine its wider adoption across shipping.

In a Maritime Impact article, the classification society draws on perspectives from cargo owners, engine manufacturers and other industry stakeholders to assess ethanol’s potential alongside established and emerging marine fuels. The analysis focuses on economics, fuel availability, lifecycle emissions, sustainability and regulatory developments.

Ethanol gains attention as shipping seeks fuel flexibility

Ethanol has historically played a limited role in the maritime fuel debate, while LNG and, more recently, methanol have gained greater traction in vessel orders. Ethanol, despite being the world’s most widely produced liquid biofuel, has largely remained associated with regional markets.

That position is beginning to shift as shipping companies and cargo owners assess fuel options capable of supporting decarbonisation while retaining flexibility amid evolving regulations and fuel markets.

Ethanol’s established use in road transport is one factor supporting its consideration for shipping. Decades of application have contributed to production capacity, supply infrastructure and fuel-handling experience. At the same time, regulations such as FuelEU Maritime are increasing the focus on lifecycle greenhouse gas emissions and well-to-wake performance.

Vale explores ethanol-powered vessels

Mining company and cargo owner Vale is among the companies examining ethanol as part of its decarbonisation strategy.

Vale has partnered with Shandong Shipping to develop at least two Guaibamax vessels equipped with rotor sails and designed to operate on ethanol. The vessels are expected to be delivered in 2029.

The company is also evaluating the conversion of methanol-fuelled vessels into tri-fuel ships capable of using methanol, ethanol and conventional fuel.

Rodrigo Bermelho, Shipping Director at Vale, said designing and constructing new ships is the most cost-effective and integrated opportunity to incorporate technological advances in the company’s decarbonisation programme, while also providing flexibility amid regulatory and market uncertainty.

Ethanol and methanol share technology links

DNV notes that ethanol’s development is taking place alongside the rapid expansion of methanol technologies. Both are alcohol-based fuels and share certain characteristics, creating potential opportunities to build on existing engine technology, fuel systems and operational experience.

Mario Barbosa, General Manager Latin America at Wärtsilä, said ethanol shares some characteristics with methanol and may provide additional flexibility for certain vessel applications over time.

However, DNV also highlights that ethanol and methanol cannot simply be treated as interchangeable fuels. Vessel-specific factors, including engine parameters, fuel injection, fuel-system specifications and safety requirements, need to be evaluated before implementation.

Barbosa noted that ethanol has its own technical characteristics, including differences in energy content, making optimisation important for reliable and efficient operation.

Regulation and fuel availability remain key factors

The wider adoption of ethanol in shipping will depend on more than the availability of suitable engines and vessels. DNV identifies fuel economics, production capacity, supply availability, sustainability and regulatory requirements as important considerations for shipowners and cargo interests.

Ethanol also benefits from established IMO safety frameworks covering alcohol fuels, while the industry’s growing experience with methanol is contributing to broader operational knowledge around the safe handling and use of alcohol-based marine fuels.

As shipping evaluates multiple pathways to reduce greenhouse gas emissions, ethanol is emerging as another potential option within a broader fuel mix rather than as a replacement for other alternative fuels.