Vale and Shandong Shipping have signed an agreement covering new ethanol-powered Guaibamax vessels, with deliveries expected to begin in 2029.
The project marks what the companies describe as the first use of ethanol as the primary fuel on an oceangoing vessel in the maritime industry.
The agreement includes 25-year contracts covering the construction of two ships at CSSC Qingdao Beihai Shipbuilding, with options for additional vessels. The ships will be 340 metres long and capable of carrying 325,000 tonnes.
Vale said the second-generation Guaibamax design forms part of its broader multi-fuel strategy. In addition to ethanol, the vessels will also be able to use methanol and heavy fuel oil, while the design allows for future conversion to LNG or ammonia.
Rodrigo Bermelho, Vale’s director of shipping, said the use of ethanol in combination with rotor sails places the company in a distinctive position in the energy transition of global shipping. He said the initiative also helps stimulate similar decarbonisation efforts across the sector.
The new ships will be similar to 10 other dual-fuel vessels, capable of operating on methanol and fuel oil, that Shandong is scheduled to deliver to Vale from 2027 onward.
The programme forms part of Vale’s Ecoshipping strategy, under which the company is testing lower-carbon fuels and new technologies to reduce emissions and improve fleet efficiency.
Vale noted that since 2011 it has chartered first-generation Valemax ships, followed by second-generation Valemax vessels in 2018 and the first Guaibamax ships in 2019. According to the company, these highly efficient vessels produce up to 41% fewer CO2-equivalent emissions than standard capesize carriers.
