Brazilian mining company Vale has signed a 25-year charter agreement with China’s Shandong Shipping Corporation for the construction of the world’s first two ocean-going ethanol-powered vessels. The new Guaibamax-class bulk carriers, each capable of carrying up to 325,000 tons of iron ore, are scheduled to be delivered to the customer starting in 2029, according to a press release.
The vessels will be equipped with a range of energy-efficiency solutions. Specifically, they will be fitted with rotary sails to harness wind energy, as well as more efficient engines and other technologies aimed at reducing fuel consumption and emissions. Vale emphasizes that decarbonization is an irreversible trend and remains one of the key elements of the company’s strategy in both maritime transport and the development of products for the steel industry.
The agreement was signed amid renewed tensions in the international oil market, which have heightened interest in alternative fuels and diversification in maritime transport. The company notes that current geopolitical risks underscore the importance of flexible logistics systems capable of adapting to various market conditions and ensuring business continuity. At the same time, Vale states that its shipping operations have not yet been significantly affected by the situation in the Middle East.
Vale already operates approximately 50 Guaibamax-class vessels. Previously, the company also announced the charter of an additional 10 vessels from Shandong Shipping, capable of running on methanol and fuel oil, with deliveries scheduled for 2027–2029. The ore producer is currently exploring the possibility of retrofitting these vessels to run on ethanol, signaling its intention to further expand its portfolio of low-carbon solutions in maritime logistics.
As a reminder, in 2025, Vale increased its iron ore production by 2.6% year-over-year to 336 million tons. This is the highest annual volume since 2018. Production exceeded last year’s forecast (325–335 million tons).
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