Mining Giant Vale Orders World's First Ethanol-Powered Giant Bulkers
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.
Considering the full fuel cycle from well to wake, Vale highlights that ethanol can reduce carbon emissions by around 90 percent (in the case of second-generation ethanol) compared with heavy fuel oil. In addition to maritime transport, Vale’s adoption of ethanol in its logistics operations includes trials on trucks at its operations and on locomotives on the Vitória a Minas Railway (EFVM).
The new ethanol-powered ships will be similar to 10 other dual-fuel vessels (methanol and heavy fuel oil) that Shandong will deliver to Vale starting in 2027. The second generation of the Guaibamax will be equipped with five rotor sails to provide wind-assisted propulsion, as well as more efficient engines, hydrodynamic devices, a shaft generator, frequency inverters, and silicone paint, among the energy efficiency improvements. Vale says this set of technologies applied will reduce GHG emissions by around 15 percent compared to the current generation of Guaibamax. These technologies and alternative fuels are being tested as part of Vale’s Ecoshipping program.
The mining giant had reported in October 2024 that it was proceeding with the installation of rotors on one of its 400,000 dwt vessels. It was part of an agreement with the Japanese owners of the NSU Tubarao and Anemoi Marine. The company also added Norsepower rotors to one of its Capesize bulkers.
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Vale’s chartered fleet includes first-generation Valemax vessels since 2011, second-generation Valemax vessels since 2018, and, since 2019, the first generation of Guaibamax. According to the company, these vessels are among the most efficient in the world and can reduce CO2 equivalent emissions by up to 41 percent compared to a standard capesize vessel.