Ethanol Emerges as a Leading Next-Generation Marine Fuel

The maritime industry is intensifying its competition over next-generation fuels.

While methanol, ammonia, and LPG have led the conversation, ethanol is now rapidly rising as a major contender.

Why is ethanol attracting attention? How does it differ from methanol?
This article explains the engine makers’ latest moves and the potential impact on decarbonization strategies.

Why Ethanol Is Gaining Attention as a Marine Fuel

Three major factors are driving ethanol’s rise:

• Large-scale global supply already exists
• Easy to adopt as a carbon-neutral fuel
• High compatibility with methanol systems

1. Large supply infrastructure

Ethanol is widely produced from biomass in North and South America, and fuel infrastructure already exists due to automotive use (E10, etc.).

2. Carbon-neutral characteristics

Bioethanol is effectively carbon-neutral across its lifecycle, aligning well with IMO regulations.

3. Compatibility with methanol systems

As alcohol-based fuels, ethanol and methanol share similar properties, allowing easier conversion from methanol-ready engines.

Why the Shift Toward Ethanol Is Happening Now

Two recent developments accelerated ethanol’s momentum:

• Rapid growth in methanol-fueled vessels
• Shortage of green methanol

As methanol demand surged, green methanol production lagged behind, pushing ethanol into the spotlight.

Engine Makers Accelerate Ethanol-capable Technologies

The pace of marine decarbonization depends heavily on engine manufacturers.

Two global leaders are moving fast:

• WinGD: Based on X-DF-M, convertible to ethanol with fuel valve and tuning changes
• EVERENCE (ex-MAN ES): Successful ethanol combustion tests, preparing for commercialization

Their alignment is expected to accelerate adoption by shipowners.

Future Potential of Ethanol Marine Fuel

Ethanol offers high practical feasibility:

• Lower transition costs due to methanol compatibility
• Existing supply chains reduce risk
• Strong alignment with global decarbonization policies

Key future factors include:

• Newbuilding trends among shipowners
• Fuel policy and regulatory frameworks
• Bioethanol supply expansion in the Americas

Conclusion

A paradigm shift in marine fuels may already be underway.