From Corn Fields to Cargo Ships, Ethanol Gains Early Traction as Marine Fuel

June 12, 2026

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by Jeslyn Lerh (Reuters) Some major shippers start eyeing ethanol in future fuels mix; Abundant supply, relatively low prices can support adoption; Compatible with existing methanol-capable ship engines

Shippers including Maersk and mining giant Vale are turning to ethanol as a marine fuel to cut emissions as abundant supply and lower cost make it more attractive than other low-carbon fuels, with further commercial usage expected as early as next year.

The use of ethanol in shipping could open a new demand channel for the fuel, which in some countries is blended ‌into gasoline, while offering shipowners another pathway to cut conventional fuel use to meet emission reduction targets.

Renewed interest follows mounting pressure on the global shipping industry to manage oil price uncertainty as hostilities in the Middle East and closure of the Strait of Hormuz, a vital waterway, highlight the risks of conventional fuel supplies.

"Volatile fossil fuel prices strengthen the long-term case for fuel diversification," said Chris Chatterton, maritime adviser at the Global Centre for Green Fuels (GCGF).

"What is distinctive about ethanol in this environment is that it can be deployed incrementally - as a blend into methanol on existing methanol-ready vessels, with no major retrofit and no capital commitment to a single-fuel strategy."

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ETHANOL TRIALS ON SHIPS EQUIPPED WITH ⁠METHANOL ENGINES

Shipping group Maersk (MAERSKb.CO), opens new tab completed its first two sailings on 100% ethanol in the first quarter and last week, following earlier tests of 10% and 50% ethanol blends on a vessel designed to run on either methanol or fuel oil.

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"Ethanol is relevant to explore because it has an established global market and existing infrastructure, and it shares properties similar to methanol," a Maersk spokesperson told Reuters.

Singapore-based shipping group X-Press Feeders said it also trialled a marine fuel blend consisting of 10% ethanol and 90% methanol on a container vessel in Rotterdam.

Brazil-based Vale, which uses ships to transport iron ore, said it 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.

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ABUNDANT U.S., BRAZILIAN CORN

Ethanol's main feedstock is corn, which top producers, the U.S. and Brazil, have in abundance. Conventional methanol is derived from fossil fuels.

The U.S. Department of Agriculture has projected a 17-billion-bushel domestic corn supply for 2025-2026, the largest on record, as yield per acre improves.

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EFFICIENCY OF ETHANOL

Ethanol contains around 35% more energy per kilogram than methanol, meaning ships require less fuel to travel the same distance. However, ethanol still lags conventional fuel oil in energy content, requiring about 50% more fuel by weight to achieve the same energy output.

Depending on location and volume, the cost of ethanol is broadly comparable to conventional low-sulphur fuel oil (LSFO) but is cheaper than green methanol.

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Chatterton expects more commercial ethanol bunkering operations to emerge over the next 12 to 24 months, with Brazil's Santos and top bunker hub Singapore as likely first movers.

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"Additional early activity is expected in the U.S. Gulf, linked to export-driven ethanol supply chains," said Rostom Merzouki, global sustainability vice president at ship classification society ABS. READ MORE

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Maritime fuel policy push could open new market for U.S. ethanol (National Association of Farm Bureaus/KFGO)

Excerpt from National Association of Farm Bureaus/KFGO: Ethanol industry groups are intensifying efforts to ensure renewable fuels are included in emerging international maritime fuel policies, arguing the shipping sector could become a major new source of demand for U.S. agriculture. The push comes as the International Maritime Organization and national governments consider policies aimed at reducing greenhouse gas emissions from ocean-going vessels. Ethanol advocates say the fuel offers a lower-carbon alternative that can be used in many methanol-capable ship engines without significant modifications.

The Renewable Fuels Association and other members of the American Biofuels Maritime Initiative are urging policymakers to adopt technology-neutral regulations that allow ethanol to compete alongside other alternative fuels. According to the coalition, expanding marine fuel markets could support U.S. corn growers and rural economies. Interest in ethanol as a marine fuel is growing among global shipping companies.

Reuters reported that firms including Maersk and Vale have conducted trials or commissioned vessels capable of operating on ethanol-based fuels as they seek to reduce emissions and diversify fuel supplies. Industry estimates cited by the Renewable Fuels Association suggest capturing just 5% of the global marine fuel market could increase annual ethanol demand by 4 billion to 5 billion gallons and boost corn demand by roughly 1.5 billion bushels.

Supporters say policy decisions made over the next several years will help determine whether ethanol becomes a significant player in the maritime fuel market. READ MORE