Nineteen dual-fuel bulk carriers capable of using ethanol have been ordered, marking a significant shift towards alternative fuels in shipping.
As the transition to alternative fuels accelerates in the global shipping sector, 19 dual-fuel bulk carriers capable of using ethanol have entered the newbuilding order book. Investments led by Brazilian mining giant Vale are opening the door to a new era in dry bulk transportation.
Efforts to reduce carbon emissions in global maritime transport are increasing interest in new fuel technologies within the shipbuilding sector. In dry bulk transportation, which has long been dominated by traditional marine fuels, vessels capable of using ethanol and methanol have begun to emerge as new investment options for shipowners.
According to a report by Hellenic Shipping News dated November 7, 2026, the number of orders for dual-fuel bulk carriers capable of using ethanol has reached 19. The first methanol and ethanol-compatible bulk carriers were entered into the order book in 2023, with a significant increase in orders occurring from May 2026 onwards. The order portfolio of 19 vessels was reached as of September.
Vale's 30-Vessel Alternative Fuel Initiative
At the center of the development of alternative fuel bulk carriers is Brazilian Vale, one of the world's leading iron ore producers.
As part of the company's long-term transportation strategy, there is a goal to commission up to 30 large ore carriers capable of using methanol or ethanol.
Under this program, various shipowners are placing new vessel orders by entering into long-term transportation agreements with Vale.
South Korea-based Polaris Shipping ordered four Newcastlemax-type bulk carriers with a capacity of 210,000 DWT from the Qingdao Beihai Shipbuilding yard in China in August.
The vessels, scheduled for delivery starting in 2031, will be equipped with tri-fuel main engines capable of using methanol, ethanol, and heavy fuel oil. The ships are also designed to be convertible for future use of LNG and ammonia.
Polaris Shipping has a 25-year transportation contract with Vale for these vessels.
Interest in Ethanol-Fueled Ships is Growing
According to data from classification society DNV, 69 vessels capable of using alternative fuels were ordered by September 2026. Of these, 12 were bulk carriers capable of using ethanol.
In the first nine months of 2026, new vessel orders for alternative fuels reached 311, marking a 53% increase compared to the same period the previous year.
While LNG continues to be the most common alternative fuel option in the sector, ethanol and methanol are emerging as new options, particularly for large bulk carriers.
The long-standing use of ethanol in the automotive sector, its existing production capacity, and fuel supply infrastructure are cited as influential factors in the maritime sector's shift towards this fuel.
Some Shipowners are Returning to Traditional Fuels
Despite the growing interest in alternative fuel technologies, not all shipowners are following the same investment strategy.
Pacific Basin decided to replace four Ultramax-type bulk carriers, which it had previously planned to order as methanol dual-fuel vessels, with traditional fuel-powered ships.
This change reduced the announced cost of the company's newbuilding program from $186 million to $156.8 million.
The company noted that uncertainties regarding the International Maritime Organization's (IMO) Net-Zero Framework also influenced its decision. However, it has retained options for two dual-fuel vessels.
Fuel Prices and Supply Infrastructure Will Be Determinative
According to an analysis by maritime consultancy Drewry based on IMO data, alternative fuels accounted for 9.5% of the total energy demand in maritime transport in 2025. The share of methanol in alternative fuel consumption remained at only 0.3%.
These figures indicate a significant gap between the ordering of vessels capable of using alternative fuels and the actual consumption of these fuels.
For bulk carriers operating in different geographical areas, the availability of fuel in ports, its price, and supply infrastructure are of critical importance.
In future investment decisions, it is expected that not only the fuel technologies of vessels but also whether alternative fuels can become commercially competitive will be decisive for shipowners.
New-generation vessels capable of using ethanol and methanol offer a new option for the maritime sector's carbon emission reduction targets, while the widespread adoption of these technologies will depend on fuel costs, infrastructure investments, and international regulations.
Source: SeaNews Türkiye
