Latest News

From corn fields and cargo ships, early interest in ethanol as a marine fuel

Maersk, Vale and other shippers are using ethanol to reduce emissions. Its low cost and abundant supply make it more appealing than other fuels with lower carbon content. Further commercial use is expected to begin as soon as next year.

The use of ethanol in shipping can open up a new market for the fuel which is in some countries blended with gasoline. It also offers'shipowners' another way to reduce conventional fuel consumption to meet emission targets.

The global shipping industry is under increasing pressure to manage the uncertainty of oil prices as the hostilities in Middle East and the closure of the Strait of Hormuz - a vital waterway - highlight the risks of conventional fuel supply.

Chris Chatterton is a maritime advisor at the Global Centre for Green Fuels.

The ethanol can be blended into existing methanol ready vessels without requiring major retrofits or capital investment in a single fuel?strategy.

Shipping industry tests alternatives to fuel oil, including ammonia and biodiesel.

ETHANOL TRIALS FOR SHIPS WITH METHANOL ENGINES

Maersk, a shipping company, completed its first two 100% ethanol sailings?in the quarter and last year. This followed earlier tests on 10% and 50% blends of ethanol on a vessel that was designed to run either on methanol or on fuel oil.

Maersk sees ethanol as a complementary fuel to methanol.

Maersk's spokesperson said that ethanol is a good candidate for exploration because of its established global market, existing infrastructure and similar properties to methanol.

Singapore shipping group XPress?Feeders also said that it had tested a marine fuel mixture consisting of 90% methanol and 10% ethanol on a container ship in Rotterdam.

Vale, a Brazilian company that uses ships to transport ore, has announced a contract with China's Shandong Shipping Corp. for the construction of two vessels capable of running on ethanol, heavy fuel oil, or methanol.

According to Everllence, a Swiss engine manufacturer, ethanol can be used in existing methanol compatible engines without requiring major retrofits.

DNV data shows that the number of vessels capable of using methanol is expected to increase from 107 by 2025 to 450 in 2030. Around 313 of the 450 vessels on order are newbuilds.

Chatterton, GCGF's Chatterton, said that green methanol, derived renewable resources, faces short-term supply restrictions.

Chatterton stated that "Maersk is explicit in its assertion that methanol is a major challenge to scaling up alternative fuels. That is why ethanol has been introduced."

CORN ABUNDANT IN THE U.S. AND BRAZILIAN

The main feedstock for ethanol is corn. Top producers like the U.S.A. and Brazil have plenty of it. Methanol derived from fossil sources is conventional?methanol.

As yields per acre increase, the U.S. Department of Agriculture projects a domestic corn supply of 17 billion bushels in 2025-2026. This is the highest ever.

The Renewable Fuels Association (a U.S. group of ethanol producers) said that if ethanol captured 5% market share in the marine fuels sector, it would increase corn demand by up to 1.5 billion bushels and demand for ethanol by between 4 billion and 5 billion gallons.

Growth Energy, a U.S. trade group for biofuels, has been lobbying for tax rules to encourage the use of more ethanol.

ETHANOL EFFICIENCY

Ethanol has a higher energy content per kilogram than Methanol. This means that ships need less fuel to cover the same distance. Despite this, the energy content of ethanol is still lower than conventional fuel oil, which requires about 50% more fuel to reach the same output.

Depending on the location and volume, ethanol costs are comparable to low-sulphur conventional fuel oil (LSFO), but it is less expensive than green methanol.

The U.S. Grains and Bioproducts Council reported that ethanol cost $700 per metric tonne if it was imported from the U.S. and more than $800 if it came from Asia.

According to industry sources, LSFO in Asia can cost more than $750 per tonne, while green methanol is easily over $1,000 per tonne.

Chatterton anticipates that more commercial ethanol-bunkering operations will emerge in the next 12-24 months. The first to move are likely to be Brazil's Santos, and Singapore as a top bunker hub. Singapore is developing standards and infrastructure to scale up alternative marine fuels.

Rostom Merzouki is the global sustainability vice-president at ABS. He said that additional early activity in the U.S. Gulf will be linked to exports driven by ethanol supply chains.

Merzouki anticipates that the first-pilot operation in Northwest Europe will expand to other important bunker hubs by late 2020.

(source: Reuters)