Maritime fuel rules could open new market for U.S. ethanol

The American Biofuels Maritime Initiative on April 23 asked Secretary of State Marco Rubio to back ethanol in global shipping rules, saying a 5% slice of the marine fuel market could add 4 billion to 5 billion gallons of annual ethanol demand. The coalition said that shift could also lift corn demand by about 1.5 billion bushels as maritime regulators weigh new emissions standards.

Industry groups are pressing the International Maritime Organization and national governments to write technology-neutral rules that let ethanol compete with other low-carbon fuels. The American Biofuels Maritime Initiative said the framework should include ethanol, biodiesel, renewable diesel and bio-LNG, and argued that a workable global policy would open export markets for U.S. fuels while preserving flexibility for shipowners.

The policy window is still open. The IMO Marine Environment Protection Committee approved the Net-Zero Framework in April 2025, but final adoption was deferred after the U.S. and other oil-producing countries pushed back. The roadmap targets a 20% emissions cut by 2030, 70% to 80% by 2040 and net zero by 2050, leaving the next round of negotiations to decide which fuels will qualify.

Zoltan Szabo of the Climate Ethanol Alliance called maritime fuel the ethanol industry’s “single biggest opportunity.” His pitch rests on the fuel’s compatibility, since ethanol can run in some methanol-capable ship engines without major modifications, giving owners a way to cut emissions without waiting for a full fleet retrofit.

Maersk has already tested that case. The company completed its first two sailings on 100% ethanol in the first quarter and also ran 10% and 50% ethanol blends on a methanol- or fuel-oil-capable vessel. Maersk has said ethanol’s appeal includes its established global market and existing infrastructure, plus the ability to deploy it incrementally on methanol-ready ships.

Vale has also moved. The miner contracted with China’s Shandong Shipping Corp. to build two vessels that can operate on ethanol, methanol or heavy fuel oil, with deliveries due to begin in 2029. That comes against a backdrop of roughly 2.5 billion barrels of heavy fuel oil burned by the maritime sector each year, a fuel pool large enough that even a modest ethanol share would create a new demand channel alongside road fuel.