US ethanol readily available to fuel the world’s methanol-capable fleet

The Maritime Ethanol & Methanol Alliance (MEMA) has published a new study titled "Marine Ethanol: Unlocking the US Opportunity," highlighting how US ethanol can readily fuel the world’s methanol-capable fleet. The study reveals that ethanol can be used in dual-fuel engines and bunkering infrastructure designed for methanol with minimal modifications. This availability of ethanol provides shipowners with a readily available fuel option during a period when supply of low-emission methanol remains limited, according to MEMA.

The research indicates that ethanol can support over 300 methanol-capable vessels currently in service or on order, either alone or blended with methanol. The US is well-positioned to meet the growing demand for biofuels in shipping. US plants have the capacity to produce 18.5 billion gallons of fuel ethanol annually, surpassing the 2025 output of 16.4 billion gallons, leaving around 2 billion gallons of spare capacity.

The US is the largest producer of fuel ethanol, accounting for over half of the global output, and exports to approximately 80 countries through Gulf Coast terminals that also serve as major bunkering hubs.

International shipping consumes around 300 million tonnes of fuel annually, valued at an estimated US$180 billion. The study's scenarios suggest that ethanol could meet 1% of this fuel by mass, requiring approximately 1 billion gallons, which is well within the current spare capacity. Reaching a 5% share by the mid-2030s would necessitate around 5 billion gallons.

The study comes as ethanol bunkering transitions from trials to commercial operation, with the International Maritime Organization to decide on its next steps on the Net-Zero Framework during an extraordinary session on 4 December, following MEPC 85.

Ethanol, at technology readiness levels 8-9, is technically mature and is emerging for commercial deployment. Compared to heavy fuel oil, ethanol eliminates sulphur oxide emissions entirely. It reduces nitrogen oxides by 40-94%, depending on engine technology, and particulate matter by 90-99%, without the need for scrubbers. The study also notes that ethanol's net production cost, after co-product revenue, is below US$1 a gallon, making it a cost-effective low-emission marine fuel option.

The research was conducted by MEMA, a platform of the Global Centre for Green Fuels, with technical analysis provided by ABS as a Knowledge Partner. The study's views and recommendations are those of MEMA, with input from US ethanol producer Marquis Energy.