Vale reports it has entered into an agreement with China’s Shandong Shipping Corporation to build the first large ocean-going vessels that will use ethanol as their primary fuel. It is an adaptation of its current design for the massive Guaibamax vessels (325,000 dwt) and follows news from earlier this year that reported Vale and Everllence were working on ethanol as a marine fuel for its engines.
According to Vale, the agreement with Shandong includes 25-year contracts for the construction of two vessels, with an option for additional ships. The adoption of these second-generation Guaibamax vessels, which are 340 meters (1,115 feet) long and have a capacity of 325,000 tonnes, is part of the Brazilian mining company’s multi-fuel strategy. In addition to ethanol, these vessels will be capable of using methanol and heavy fuel oil, and their design also allows for conversion to use liquefied natural gas (LNG) or ammonia.
Shipping companies and the engine manufacturers have reported they are exploring ethanol as an alternative fuel. While there are concerns over supply, it is easier to handle than ammonia, which is toxic and highly corrosive. Maersk reported last December that it was exploring ethanol aboard its pioneering methanol-fueled feeder ship Laura Maersk. Everllence reported in September 2025 that it had success testing ethanol on its large two-stroke engines in the factory.
“The use of ethanol as fuel in the ships that transport our ore, combined with the adoption of rotor sails to harness wind energy, places Vale in a unique position for the energy transition in global shipping over the coming decades, whilst driving similar initiatives in the sector,” said Rodrigo Bermelho, Vale’s Director of Shipping.
