Vale and Shandong Shipping have partnered to launch the world’s first ethanol-powered Guaibamax vessels, targeting a 90% reduction in carbon emissions for global iron ore transport. Scheduled for delivery starting in 2029, these 325,000-tonne triple-fuel carriers integrate rotor sails and advanced energy-saving technologies to pioneer the maritime energy transition. This landmark agreement reinforces Vale’s Ecoshipping strategy and its commitment to reducing Scope 3 emissions in alignment with IMO decarbonization goals.
Sao Paulo | April 9, 2026 – In a landmark move for the global shipping industry, Brazilian mining titan Vale has announced a strategic partnership with Shandong Shipping Corporation to construct the world’s first ocean-going vessels powered primarily by ethanol.
The agreement marks an unprecedented milestone in the energy transition for the dry bulk sector. By shifting to ethanol as a primary propellant, Vale aims to slash greenhouse gas (GHG) emissions by up to 90% on a “well-to-wake” basis, effectively setting a new benchmark for deep-sea decarbonization.
A Multi-Fuel Marvel: The Second-Generation Guaibamax
The agreement centers on the construction of two massive Guaibamax bulk carriers under 25-year contracts, with options for further expansion. These vessels represent the pinnacle of current maritime engineering:
- Vessel Specs: 340 meters in length with a massive cargo capacity of 325,000 tonnes.
- Triple-Fuel Capability: The engines are designed to operate on ethanol, methanol, and conventional bunker fuel (HFO).
- Future-Proof Design: The vessels are built with “retrofit-ready” configurations, allowing for seamless transition to Liquefied Natural Gas (LNG) or ammonia as the global regulatory and supply landscape evolves.
- Operational Timeline: The first of these ethanol-powered giants is scheduled to enter service in 2029.
Engineering Efficiency: Beyond the Fuel Tank
While the fuel switch is the headline, the second-generation Guaibamax integrates a suite of advanced energy-saving technologies under Vale’s Ecoshipping program. These enhancements are expected to reduce emissions by 15% compared to the current fleet, regardless of the fuel used:
- Rotor Sails: Each ship will be equipped with five rotor sails, harnessing wind energy to augment mechanical propulsion.
- Hydrodynamic Devices: Optimized hull attachments to reduce drag and improve water flow to the propeller.
- Shaft Generators & Inverters: High-efficiency electrical systems to manage onboard power consumption more effectively.
- Silicone Hull Paint: Specialized coatings to minimize friction and prevent marine growth.
“Vale’s pioneering efforts are guided by a strategy that combines flexibility and efficiency. The use of ethanol, combined with rotor sails, places us in a unique position for the energy transition whilst driving similar initiatives across the sector.” said Rodrigo Bermelho, Vale’s Director of Shipping
The Decarbonization Roadmap
This initiative is a critical component of Vale’s broader environmental commitment. Since 2020, the company has poured approximately US$ 1.4 billion into reducing its Scope 1, 2, and 3 emissions.
- Scope 3 Target: Vale aims to reduce its value chain emissions (which include maritime transport) by 15% by 2035.
- Comparison: Currently, Vale’s Guaibamax and Valemax fleets are already high performers, reducing CO2 equivalent emissions by up to 41% compared to standard Capesize vessels.
The ethanol strategy isn’t limited to the sea. Vale is currently conducting parallel trials using ethanol for its heavy-duty mining trucks and its locomotives on the Vitória a Minas Railway (EFVM), signaling a total-logistics shift toward biofuels.
Industry Impact & Strategy
The deal with Shandong Shipping also includes a separate rollout of 10 dual-fuel (methanol/HFO) vessels starting in 2027. By layering ethanol-powered ships into this mix, Vale is diversifying its fuel risk, ensuring that its fleet can adapt to whichever green fuel achieves the best infrastructure and price parity by the end of the decade.
By utilizing second-generation ethanol (produced from agricultural waste), the 90% reduction target becomes a tangible reality, aligning the mining giant with the International Maritime Organization’s (IMO) intensifying pressure to reach net-zero shipping by mid-century.
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.
Source: Vale