The Availability of US Ethanol as a Sustainable Marine Fuel Opportunity

Exploring Ethanol as a Sustainable Marine Fuel

A recent study released by the Maritime Ethanol Methanol Alliance (MEMA), an initiative from the Global Centre for Green Fuels (GCGF), shows promising results for the utilization of ethanol in maritime shipping. This study highlights that with minimal modifications, ethanol can be used in dual-fuel engines and existing bunkering infrastructures dedicated to methanol, paving the way for shipowners to access an efficient and sustainable fuel source during a time when the availability of low-emission methanol is limited.

Ethanol's adaptability comes at a pivotal moment for the maritime industry, where there are currently over 300 vessels designed to run on methanol, either in service or on order. Ethanol can serve these vessels either on its own or mixed with methanol, showcasing its versatility as an alternative fuel. Additionally, the US is well-positioned to cater to the growing demand for biofuels in the shipping sector. Current production capabilities are impressive, with US plants able to generate approximately 18.5 billion gallons of ethanol annually. The forecast for 2025 indicates that production will reach around 16.4 billion gallons, indicating a surplus of nearly 2 billion gallons available for use in maritime applications.

The global shipping industry consumes nearly 300 million tonnes of fuel each year, a market worth an estimated $180 billion. The study illustrates that if ethanol were to satisfy just 1% of this demand, that would equate to around 1 billion gallons annually, well within the bounds of the current surplus. Projections suggest that achieving a 5% market share by the mid-2030s could require up to 5 billion gallons, further underscoring ethanol's potential impact in this sector.

Recent activities in the industry reflect a transition from trial to commercial viability for ethanol bunkering. For instance, on September 28, Tangier Maersk successfully completed the first commercial ship-to-ship bunkering operation of US corn ethanol in Houston. This milestone marks a significant pivot for the acceptance of ethanol as a reliable marine fuel for deep-sea shipping.

The study evaluates ethanol as a fuel option with a technology readiness level between 8 and 9, indicating it is technically mature and ready for commercial application. Compared to heavy fuel oil, ethanol has demonstrated remarkable environmental benefits—eliminating sulfur oxide emissions entirely and reducing nitrogen oxides by 40 to 94%, depending on the engine type. Furthermore, it substantially lowers particulate matter emissions by 90 to 99%, significantly outperforming traditional fuels.

From a financial perspective, the net production cost of ethanol, after accounting for co-product revenues, is estimated to be below $1 per gallon, making it a cost-effective alternative when positioned against other low-emission marine fuels.

Clarence Woo, Managing Director of GCGF, expressed optimism about the findings, stating, "Ethanol is transitioning beyond pilot projects into widespread use. This study indicates that the United States has both the production capacity and the export infrastructure necessary to service the shipping industry at a large scale. The challenge ahead lies in ensuring consistency and reliability as the international bunkering infrastructure grows. Standardized marine fuel specifications will be crucial, alongside transparent feedstock sourcing and strong custody chains, to guarantee the seamless use of ethanol from multiple producers and regions."

The full report is available for download at www.green-fuels.org/us-ethanol.

About Ethanol

Ethanol (C₂H₅OH) serves as a clean-burning alcohol fuel, fully liquid at standard temperature and pressure. It boasts a high octane rating of 108, contributing to its resistance to engine knocking, while its lower heating value stands at 26.8 MJ/kg, outperforming methanol and comparably rated to marine gas oil. Ethanol’s structure facilitates more efficient combustion, leading to the significant reduction of harmful emissions. This environmentally friendly fuel is widely available, demonstrating low toxicity levels and rapid biodegradability.

About the Global Centre for Green Fuels

The GCGF operates as a non-profit think tank in Singapore, dedicated to promoting the adoption of sustainable, low-carbon biofuels, particularly focusing on ethanol. The organization provides insights and advice to industry leaders, policymakers, and government bodies worldwide to bolster global efforts aimed at decarbonizing transport fuels. Acting through its MEMA platform, GCGF brings together key stakeholders in the fuel production and shipping sectors to accelerate the implementation of ethanol and methanol in maritime operations, aligned with international standards set by IMO, ISO, and EU guidelines.