Vale has signed an agreement with Shandong Shipping Corporation to develop what it claims will be the world’s first ocean-going vessels powered primarily by ethanol.
The new Guaibamax vessels, scheduled for delivery from 2029, will be capable of reducing carbon emissions by up to 90% compared with conventional heavy fuel oil, depending on the type of ethanol used. The two ships will operate under 25-year contracts, with options to expand the fleet.
Designed as multi-fuel vessels, the vessels will be able to run on ethanol, methanol and heavy fuel oil, with future conversion options for liquefied natural gas (LNG) or ammonia. Each vessel will have a capacity of 325,000 tonnes, supporting the mining giant’s global iron ore transport operations.
Rodrigo Bermelho, Vale’s director of shipping, said: “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.”
The new ethanol-powered vessels will be similar to 10 dual-fuel vessels (methanol and heavy fuel oil) that Shandong will deliver to Vale from 2027 onwards.
The new ships and alternative fuels are being tested as part of Vale’s Ecoshipping programme, which aims to support the maritime industry’s decarbonisation efforts and improve the efficiency of the mining company’s fleet.
The initiative forms part of Vale’s broader strategy to reduce Scope 3 emissions across its supply chain by 15%. By 2025, particularly in maritime logistics, which represents a significant share of its carbon footprint.
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