The global shipping industry is turning to ethanol as a marine fuel to cut emissions, with abundant supply and lower cost making it more attractive than other low-carbon fuels.
Renewed interest follows mounting pressure on the industry to manage oil price uncertainty, highlighting the risks of conventional fuel supplies.
The use of ethanol in shipping could open a new demand channel for the fuel, which is blended into gasoline in some countries, while offering shipowners another pathway to cut conventional fuel use.
Volatile fossil fuel prices strengthen the long-term case for fuel diversification, according to maritime adviser Chris Chatterton at the Global Centre for Green Fuels.
Ethanol's incremental deployment on existing methanol-ready vessels with no major retrofit and capital commitment is a key advantage in this environment.
The shipping industry has been testing alternatives to fuel oil, including liquefied natural gas, ammonia, biodiesel, and methanol.
Maersk completed its first two sailings on 100% ethanol, following earlier tests of 10% and 50% ethanol blends on a vessel designed to run on either methanol or fuel oil.
Ethanol is relevant to explore because it has an established global market and existing infrastructure, and it shares properties similar to methanol, according to Maersk.
Singapore-based shipping group X-Press Feeders trialed a marine fuel blend consisting of 10% ethanol and 90% methanol on a container vessel in Rotterdam.
Brazil-based Vale has contracted with China's Shandong Shipping Corp to build two vessels that can operate on ethanol, methanol, or heavy fuel oil.
Ethanol can run on an existing methanol-compatible engine without major retrofits, according to engine-makers including Switzerland's Everllence.
The number of methanol-capable vessels is expected to reach 450 by 2030, up from 107 in 2025, DNV data showed.
About 313 of those 450 vessels are newbuilds on order.
Green methanol faces near-term supply constraints, which is why ethanol is being introduced into the mix, according to GCGF's Chatterton.
Maersk has been explicit that methanol availability is one of the principal challenges in scaling alternative fuels, and that is precisely why ethanol is being explored as a complement.
As the shipping industry seeks to reduce emissions, alternative fuels like ethanol are gaining traction due to their abundance and lower costs.
