Vale and Shandong Shipping Corporation have signed a landmark agreement to develop the world’s first ethanol-powered ocean-going bulk carriers, marking a major breakthrough in maritime decarbonisation.
The deal covers two next-generation Guaibamax vessels, with delivery scheduled from 2029, and includes 25-year charter contracts with an option for additional ships. The vessels will transport iron ore under Vale’s global logistics network.
Powered primarily by ethanol, the new ships are expected to cut carbon emissions by around 90% versus conventional heavy fuel oil, making them the first in the industry to use ethanol as a main marine fuel.
The 340-metre vessels, with a 325,000-tonne capacity, are part of Vale’s broader multi-fuel strategy and can also operate on methanol and heavy fuel oil, with future conversion options to LNG or ammonia.
Vale said the initiative strengthens its push toward a lower-carbon supply chain, while also aligning with global decarbonisation discussions at the International Maritime Organisation.
Beyond fuel innovation, the ships will feature rotor sails, energy-efficient engines, hydrodynamic upgrades and other technologies, collectively cutting emissions by about 15% versus current Guaibamax vessels.
The project builds on Vale’s broader “Ecoshipping” programme, which has already delivered some of the world’s most efficient bulk carriers and reduced emissions by up to 41% compared to traditional capesize vessels.
