Everllence and Vale have signed a landmark agreement to develop ethanol-powered dual-fuel engines using the B&W ME-LGI platform. The collaboration scales successful 2025 tests in Japan and Denmark to G70 and G80 engine platforms, targeting the Brazil-China trade corridor. This strategic move establishes ethanol as a commercially scalable, ambient-temperature alternative for the decarbonization of the global dry-bulk fleet.
Denmark | February 25, 2026 – In a move that signals a major shift in the alternative fuels landscape, Brazilian mining titan Vale and engine pioneer Everllence have formalized a cooperation agreement to develop ethanol-powered dual-fuel engines. The partnership aims to position ethanol, a fuel long championed by Brazil, as a commercially scalable, “future-proof” solution for the global bulk carrier fleet.
The collaboration centers on the adaptation of Everllence’s proven B&W ME-LGI (Liquid Gas Injection) platform. By leveraging this technology, the companies intend to create an engine capable of running on ethanol, offering a high-density, low-carbon alternative to traditional Heavy Fuel Oil (HFO).
The Ethanol Advantage: Beyond Carbon Neutrality
For Vale, one of the world’s largest logistics operators, the appeal of ethanol extends beyond simple emissions math. While its lifecycle carbon neutrality is a primary driver, the fuel offers several operational advantages that simplify the transition for shipowners:
- Sulphur-Free & Non-Toxic: Ethanol contains zero sulphur and boasts very low toxicity, aligning with tightening global environmental regulations.
- Ambient Handling: Unlike LNG or Ammonia, ethanol remains liquid at ambient temperatures and pressures. This allows for the use of standardized bunkering procedures, significantly reducing the complexity and cost of on-board handling systems.
- Environmental Safety: Being water-soluble and biodegradable, the risks associated with accidental spills are drastically lower than those of fossil fuels or more corrosive alternatives.
Strategic Synergies: The Brazil-China Axis
The timing of the agreement is no coincidence. Brazil is a global powerhouse in ethanol production, while China remains the primary destination for Vale’s iron ore.
Christian Ludwig, Vice President and Head of Global Sales at Everllence, noted the geopolitical significance:
“It’s a pleasure to reach this agreement with Vale, this is particularly the case in Brazil and China, two markets where we expect this collaboration to resonate strongly. This agreement represents a milestone for the decarbonization journey of large-scale shipping.”
Proven Tech, Scalable Future
This announcement follows a string of technical successes for Everllence in late 2025. In September, the company successfully ran a 90-bore, two-stroke ME-LGIM engine on ethanol in Japan, followed by successful four-stroke GenSet tests in Denmark in December.
Building on this momentum, the R&D teams are now looking toward even larger applications. Ole Pyndt Hansen, Head of Two-Stroke R&D at Everllence, revealed that recent testing data has paved the way to expand the technology to G70 and G80 engine platforms, the workhorses of the capesize and VLOC (Very Large Ore Carrier) sectors.
“This cooperation marks a definitive shift in the maritime energy transition, signaling that ethanol has moved from a regional curiosity to a cornerstone of global fleet strategy. By integrating this technology into the G70 and G80 engine platforms, the workhorses of the global dry-bulk trade,“
“Everllence and Vale are not just testing a prototype; they are providing a commercially scalable, liquid-fuel pathway that bypasses the cryogenic complexities of other alternatives. For the maritime industry, the message is clear: ethanol is no longer a future prospect, it is a present-day solution for the next generation of global shipping.”
Vessel Specs & Operational Impact
| Feature | Ethanol (LGI) Platform |
| Engine Base | Everllence B&W ME-LGI |
| Primary Target | Vale’s affreighted fleet (G70/G80 platforms) |
| Bunkering | Ambient temperature/pressure; standardized handling |
| Environmental Key | Zero Sulphur, Biodegradable, Water-soluble |
The Bottom Line
For the bunkering industry, this partnership validates ethanol as a serious contender in the “multi-fuel” future. By focusing on a fuel that utilizes existing infrastructure and simplifies on-board storage, Vale and Everllence are offering a pragmatic pathway to decarbonization that balances environmental ambition with the harsh realities of maritime logistics.
About Vale
Based in Rio de Janeiro, Vale is a global leader in the production of iron ore, copper, and nickel, serving as a critical pillar of the global industrial supply chain. With a massive logistics network that includes a proprietary fleet of Valemax and Guaibamax vessels, the company is aggressively pursuing a “multi-fuel” strategy to achieve its target of a 15% reduction in Scope 3 emissions by 2035.
Beyond maritime innovations, Vale is a pioneer in terrestrial decarbonization, currently developing ethanol-powered mining trucks and battery-electric locomotives to solidify its position as one of the world’s most sustainable mining operators.
About Everllence
Everllence is a global leader in decarbonization and propulsion systems for shipping, energy, and industry. the company’s portfolio spans advanced engine technology, climate-neutral fuel retrofits, carbon capture, hydrogen systems, and industrial heat pumps. Through its subsidiary Quest One, Everllence also supports green hydrogen production at scale. With 15,000 employees across more than 140 sites worldwide, Everllence’s service arm, Everllence PrimeServ, provides global after-sales support.
Source: Everllence