AUTONEWS

Brazilian mining company announces world's first transoceanic vessel powered by ethanol

Pioneering use of biofuel in vessels serving the mining company could reduce greenhouse gas emissions in maritime transport by around 90%

Vale and Shandong Shipping Corporation have concluded a charter agreement for new Guaibamax vessels powered by ethanol, to be delivered starting in 2029. The agreement is an unprecedented milestone for the global transport of iron ore: it is the first time in the maritime industry that ethanol will be adopted as the main fuel in a transoceanic vessel.

With the potential to reduce carbon emissions by around 90% compared to the use of heavy fuel oil, commonly used in shipping, the initiative reinforces Vale's commitment to reducing its carbon emissions in the value chain and promoting decarbonization in the maritime sector, in line with ongoing discussions at the International Maritime Organization (IMO).

The agreement between Vale and Shandong includes 25-year contracts for the construction of 2 vessels, with an option for more vessels. The adoption of these second-generation Guaibamax vessels, which are 340 meters long and have a capacity of 325,000 tons, is part of a multi-fuel strategy by the Brazilian mining company. In addition to ethanol, these vessels will be able to use methanol and heavy oil, and a design also allows for conversion to liquefied natural gas (LNG) or ammonia.

"Vale's pioneering efforts towards decarbonization in maritime transport are geared towards a strategy that combines flexibility and efficiency. The use of ethanol as fuel in ships transporting our ore, coupled with the adoption of rotating sails to harness wind energy, allows Vale to be in a unique position for the energy transition in global maritime transport in the coming decades, while also driving similar initiatives in the sector," says Rodrigo Bermelho, Director of Navigation at Vale.

Considering the complete fuel cycle from well to propeller (well-to-wake), ethanol can represent an approximately 90% reduction (in the case of second-generation ethanol) in carbon emissions compared to heavy oil. In addition to maritime transport, the adoption of ethanol in Vale's logistics includes tests on trucks in operations and on locomotives of the Vitória-Minas Railway (EFVM).

Emission Reduction...The new ethanol-powered ships will be similar to 10 other dual-fuel (methanol and heavy oil) ships that will be delivered by Shandong to Vale starting in 2027. The second generation of the Guaibamax will be equipped with five rotating sails – which use wind energy to reduce fuel consumption –, more efficient engines, hydrodynamic devices, shaft generator, frequency inverters, and silicone paint, among other improvements in energy efficiency. The set of applied technologies will reduce GHG emissions by approximately 15% compared to the current generation of Guaibamax.

These technologies and alternative fuels are being tested within the Ecoshipping program, a research and development initiative created by Vale to support the decarbonization challenge of the maritime industry and increase the efficiency of the fleet serving the mining company.

The main difference lies in the multi-fuel system. Although ethanol is the focus of the operation, the ship does not depend exclusively on it.

The structure allows the use of:

-ethanol as the main fuel

-methanol as an alternative

-heavy fuel oil in specific situations

The project also already considers future adaptations for fuels such as liquefied natural gas (LNG) and ammonia, which extends the technological lifespan of the vessel and reduces the risk of obsolescence.

The efficiency of ethanol is measured considering the entire fuel use cycle, from the point of production to consumption on the ship. In this model, known as "well-to-wake," second-generation ethanol can reduce carbon emissions by up to 90%, making it one of the most advanced solutions being tested in the sector.

What changes in the ship's structure...In addition to the fuel, the new generation of Guaibamax incorporates technologies that reduce energy consumption.

Among the main advancements are:

-Rotating sails, which capture wind energy to assist in propulsion

-More efficient engines

-Hydrodynamic devices that reduce water resistance

-Shaft generator, which reuses energy from movement

-Special silicone paint, which reduces hull friction

These improvements allow for a reduction of approximately 15% in greenhouse gas emissions compared to previous models.

Why this change is gaining global relevance...Maritime transport still relies heavily on highly polluting fossil fuels. At the same time, the International Maritime Organization (IMO) is pressuring the sector for more aggressive decarbonization targets.

In this scenario, the use of ethanol in large ships represents a concrete and scalable alternative. Vale's initiative serves as a real-world test of a technology that could become standard in the industry in the coming years.

When the ships enter operation...The agreement signed with Shandong Shipping Corporation provides for:

-25-year contracts

-initial construction of 2 ships

-possibility of fleet expansion

Deliveries are scheduled to begin in 2029, indicating a gradual implementation of the technology.

Before that, Vale will already have an operational basis for comparison, with the entry into operation of 10 dual-fuel ships powered by methanol and heavy oil from 2027.

The strategy goes beyond maritime transport...The new ships are part of the Ecoshipping program, aimed at developing solutions to reduce emissions in the mining company's logistics chain.

The use of ethanol is also being tested in other areas, including:

-trucks in operations

-locomotives of the Vitória-Minas Railway (EFVM)

This move indicates that the company seeks to reduce emissions throughout its operation, and not just in maritime transport.

The change may also affect the cost of maritime transport over time. With stricter environmental regulations, companies that reduce emissions tend to avoid fees and restrictions, which can make operations more efficient and competitive.

What changes in practice with Vale's ethanol-powered ship...The adoption of Vale's ethanol-powered ship could accelerate changes in global cargo transportation.

In practice, this could:

-reduce future costs related to emissions and environmental regulation

-influence international shipping standards

-open up space for new fuels in global logistics

If the technology gains scale, Vale's current maritime transport model could accelerate changes in the current maritime transport model in the coming years.

Autonews and Mundoquatrorodas