Brazil’s iron ore producer Vale has signed a 25-year agreement with Shandong Shipping Corporation to build the world’s first transoceanic vessels powered by ethanol, marking a major step toward cleaner shipping, mining.com reported.
The two Guaibamax-class ships, each capable of carrying up to 325,000 tonnes of iron ore, are expected to be delivered from 2029. They will also feature rotor sails to use wind energy and improved engines to enhance fuel efficiency.
Vale’s navigation director Rodrigo Bermelho said the move reflects the company’s focus on reducing emissions across its operations, including maritime transport.
The agreement comes at a time when disruptions in global oil markets have increased interest in alternative fuels and flexible energy systems in shipping.
Bermelho said Vale’s shipping operations have not been significantly affected by recent geopolitical tensions, but added that the company is focused on building resilience through fuel diversification.
Vale currently operates around 50 Guaibamax vessels and has already chartered 10 dual-fuel ships from Shandong, which can run on methanol and conventional fuel. These vessels are scheduled for delivery between 2027 and 2029.
The company is also exploring the possibility of converting these ships to run on ethanol, as part of its broader strategy to adopt cleaner fuels and reduce dependence on traditional energy sources.
