Brazilian mining giant Vale is pushing ahead with ethanol as a marine fuel， agreeing with China’s Shandong Shipping to build what it said will be the first ocean-going vessels powered primarily by ethanol.

The deal covers two 325，000 dwt Guaibamax bulkers under 25-year contracts， with deliveries from 2029 and options for further ships.

The vessels will be triple-fuel， able to run on ethanol， methanol and conventional bunker fuel， with designs allowing future conversion to LNG or ammonia.

Vale shipping director Rodrigo Bermelho said the approach “combines flexibility with efficiency” and added that ethanol， alongside rotor sails， “puts Vale in a strong position for the energy transition in shipping”.

The company said emissions could be cut by up to 90% compared with heavy fuel oil， depending on the type of ethanol used.

The newbuilds will also feature five rotor sails and a range of efficiency upgrades， targeting a further 15% cut in emissions versus current Guaibamax ships， and will be similar to 10 methanol dual-fuel units Shandong will deliver to Vale from 2027 onwards.

The order builds on earlier work with engine developer Everllence， where Vale has been exploring ethanol-ready propulsion systems as part of its wider Ecoshipping programme.

Shandong has already moved on similar concepts， signing a letter of intent in Qingdao in March covering two 325，000 dwt methanol/ethanol-ready vessels.

Vale said the initiative supports its goal to cut value chain emissions by 15% by 2035， with shipping accounting for a large share of that footprint.