Everllence and Brazilian mining and logistics group Vale have signed a cooperation agreement to advance ethanol as a marine fuel, with plans to develop a dual-fuel ethanol engine for large-scale shipping.

Under the agreement, the companies will work on an ethanol-powered engine based on the Everllence B&W ME-LGI (Liquid Gas Injection) platform, positioning it as a lower-carbon alternative to conventional fossil-fuel engines.

The partners said the initiative is intended to combine environmental performance with commercial viability by leveraging ethanol’s characteristics. Ethanol contains no sulphur, is low-toxicity, biodegradable, and water-soluble, and remains liquid at ambient temperature and pressure, enabling the use of established bunkering and onboard handling procedures.

Christian Ludwig, Vice President, Head of Global Sales & Promotion, Two-Stroke Business, Everllence, said: "It's a pleasure to reach this agreement with Vale, a company that is widely recognised as a strong global advocate for ethanol as an energy-transition fuel. This is particularly the case in Brazil and China, two markets where we expect this collaboration to resonate strongly."

He added: "For our part, we see Vale as a key strategic partner — not just on the ethanol front, but in general — and are very happy to support its ambitious fleet strategy. This agreement represents a milestone for the decarbonisation journey of large-scale shipping, leveraging ethanol as a commercially scalable, globally significant pathway."

Everllence previously reported successful ethanol testing across multiple engine platforms. In September 2025, the company ran a 90-bore, two-stroke ME-LGIM (Liquid Gas Injection Methanol) engine on ethanol at all load points in Japan. In December 2025, it completed full-load testing of a four-stroke 21/31 dual-fuel GenSet on ethanol at its test facilities in Denmark.

Ole Pyndt Hansen, Senior Vice President, Head of Two-Stroke R&D, Everllence, commented: "With multiple dual-fuel technologies already in service and an ammonia-powered engine close to commercial maturity, Everllence's position as the world's leading engine developer within the two-stroke marine segment is secure."

Hansen added: "As our attention turns to ethanol, our R&D team has just returned from a two-week engine testing campaign in Japan, bringing data that further reinforces our confidence in ethanol-based solutions. Earlier tests showed strong potential and, with this new data, we are now expanding technical pathways to incorporate G70 and/or G80 engine platforms. Both our companies view this cooperation as a strategic step to support Vale's newbuilding expansion with scalable, future-proof engine technologies."

The companies said the cooperation builds on their existing strategic relationship and is intended to support Vale’s fleet expansion with scalable, future-ready propulsion solutions.