Shipping Opens a New Demand Channel for Ethanol
Ethanol is beginning to attract attention as a marine fuel as major shipping companies look for alternatives to conventional fuel oil and costly low-carbon fuels.
Maersk, X-Press Feeders and Brazilian mining group Vale are among the companies testing or preparing to use ethanol in shipping.
Maersk completed its first voyages using 100 percent ethanol during the first half of 2026 after earlier trials with 10 percent and 50 percent ethanol blends.
The development is significant for ethanol producers because maritime transport could create an entirely new demand segment beyond traditional gasoline blending.
Unlike some emerging marine fuels, ethanol already has an established global production and trading system, particularly in the United States and Brazil.
Methanol-Ready Ships Can Use Ethanol with Limited Modification
One of ethanol’s strongest advantages is its compatibility with existing methanol-capable marine engines.
Engine manufacturers and shipping companies say ethanol can be used in many methanol-ready vessels without major engine retrofits.
That allows shipowners to experiment with ethanol without committing to an entirely new propulsion system.
The number of methanol-capable ships is also increasing rapidly. DNV data cited by Reuters indicate that the global fleet could rise from 107 vessels in 2025 to around 450 by 2030.
This growing installed base could create a ready platform for ethanol adoption if commercial supply and bunkering infrastructure continue to develop.
Ethanol also contains more energy per kilogram than methanol, meaning vessels require less fuel to deliver the same amount of energy.
Competitive Pricing Could Expand Marine Demand
Price is another reason marine operators are paying attention.
In early June, ethanol was priced at around $700 per tonne on a U.S. loading basis and above $800 per tonne for imports into Asia.
That placed ethanol broadly in line with conventional low-sulphur fuel oil in some markets while remaining significantly cheaper than green methanol, which can cost more than $1,000 per tonne.
The scale of potential demand is considerable.
The Renewable Fuels Association estimates that if ethanol captured just 5 percent of the global marine fuel market, it could generate an additional four to five billion gallons of annual ethanol demand.
The first commercial infrastructure is also beginning to appear.
In May 2026, Rotterdam completed its first ethanol bunkering operation for a seagoing vessel when X-Press Feeders’ Eco Levant received a blend consisting of 90 percent certified biomethanol and 10 percent second-generation ethanol.
Further commercial activity is expected in major bunkering hubs including Singapore, Santos and the U.S. Gulf.
For ethanol producers, shipping could therefore become one of the most important emerging demand channels outside road transport.
Sources
Reuters — From Corn Fields to Cargo Ships, Ethanol Gains Early Traction as Marine Fuel, June 12, 2026
Port of Rotterdam — First Ethanol Bunkering in Rotterdam Port Successful, May 26, 2026