Vale and Shandong Shipping Corporation have concluded an agreement for new ethanol-powered Guaibamax vessels, which are scheduled for delivery starting in 2029.
Vale said this would be the first time in the maritime industry that ethanol will be used as the primary fuel on an oceangoing vessel.
The agreement between Vale and Shandong Shipping includes 25-year contracts for the construction of two vessels, with an option for additional ships.
The adoption of these Guaibamax vessels, each of which will measure 340 meters 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 will also allow for conversion to use LNG or ammonia.
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 from 2027 onwards.
