Shipping Giant Maersk Turns to Ethanol for Cleaner Fuel Alternative

The shipping industry is turning to ethanol as a cleaner alternative to traditional marine fuels, potentially opening up a massive new market for corn growers. Danish shipping giant Maersk recently completed its second voyage running on 100% ethanol this year, following earlier test runs on 10% and 50% blends.

Brazilian mining company Vale has ordered two vessels designed to burn ethanol, methanol or heavy fuel oil, signaling growing industry confidence in biofuels. The appeal is straightforward: price and availability. Ethanol traded around $700 per ton in early June, compared to more than $1,000 for green methanol.

With volatile oil markets sharpened by Middle East conflicts and the Strait of Hormuz closure, shippers are actively diversifying their fuel sources. The Renewable Fuels Association estimates that capturing just 5% of the global marine fuel market would add 4 to 5 billion gallons of ethanol demand, translating to 1.5 billion bushels of corn.