Vale has signed an agreement with Shandong Shipping Corporation for the construction of new ethanol-powered Guaibamax vessels, with deliveries scheduled from 2029.
The deal includes 25-year contracts for two vessels, with options for additional units. The ships, with a capacity of 325,000 tons, will be capable of operating on ethanol as the primary fuel, marking a first for ocean-going vessels, while also supporting methanol and conventional fuels.
Vale said the use of ethanol could reduce carbon emissions by up to 90pct compared with heavy fuel oil on a full fuel-cycle basis. The vessels will also incorporate energy-efficiency technologies, including rotor sails, advanced engines and hydrodynamic improvements.
The project forms part of Vale’s broader strategy to decarbonize its shipping operations, including the transport of iron ore, supported by its Ecoshipping programme aimed at improving fleet efficiency and reducing emissions. The company has committed to reducing Scope 3 emissions by 15pct by 2035, with maritime transport representing a key component of its emissions profile.
