# Brazilian miner Vale and Shandong Shipping Corporation have concluded a charter agreement for new Guaibamax grade vessels, powered by ethanol.

*business · news · 2026-04-09 · SteelOrbis*

## Key points

- Vale and Shandong Shipping signed a 25-year charter for ethanol-powered Guaibamax vessels.
- This is the first time ethanol will be used as the primary fuel on transoceanic ships.
- The new vessels can reduce carbon emissions by about 90% compared to heavy fuel oil.
- The ships are designed for multi-fuel use, including methanol, heavy oil, and future conversion to LNG or ammonia.
- Vale is also testing ethanol as a fuel in trucks and locomotives beyond maritime transport.

**Companies:** Vale, Shandong Shipping Corporation
**Countries:** Brazil, China

[Read the full story on SteelOrbis](https://www.steelorbis.com/steel-news/latest-news/vale-announces-first-transoceanic-ethanol-powered-vessel-for-2029-iron-ore-delivery-1446879.htm)

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