Mining giant Vale to own world's first ethanol-powered ships by 2029: Why it matters

Brazilian mining firm Vale on Thursday announced that it had signed an agreement with China's Shandong Shipping Corporation for the development of two of the world's first ethanol-fuelled bulk carriers.

While ethanol has been used in experimental fuel blends and in small inland vessels before, the new Guaibamax-capacity (325,000 dwt) ships will be the first transoceanic ships to use it as primary fuel.

The new agreement involves two 25-year contracts for the production of the vessels, of which the first one is expected to be released by 2029.

The production of the new ships have the potential to reduce carbon emissions by about 90 per cent (in the case of second-generation ethanol) as compared to heavy fuel oil, which is commonly used in Guaibamax vessels.

This marks an important step towards decarbonising maritime transport, in line with the International Maritime Organization's (IMO) push for sustainability in the maritime sector.

"The use of ethanol as fuel in the ships that transport our ore ... places Vale in a unique position for the energy transition in global shipping over the coming decades," says Rodrigo Bermelho, Vale’s Director of Shipping. 

Measuring 340m long, these second-generation ships will also be capable of using methanol and heavy fuel oil, and can be retrofitted for the use of liquefied natural gas (LNG) or ammonia as well.

The second generation Guaibamax ships—said to be about 15 per cent more efficient than the previous generation—will be equipped with five rotor sails, more efficient engines, hydrodynamic devices, a shaft generator, frequency inverters, and silicone paint, amongst other such energy efficiency improvements.

The new ethanol-powered ships are said to be similar to 10 other dual-fuel vessels (methanol and heavy fuel oil) that Shandong will deliver to Vale from 2027 onwards—all of which come under the mining giant's Ecoshipping programme, its research and development initiative support maritime sustainability efforts and improve the efficiency of the its fleet.