Maersk tests Brazilian ethanol mix to make cleaner maritime fuel

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By Roberto Samora

SAO PAULO (Reuters) -Danish shipping company Maersk is testing a blend of Brazilian ethanol with methanol and marine diesel – known as “bunker” – for its vessel engines as part of its efforts to further decarbonize operations, the company announced on Monday.

WHY IT’S IMPORTANT

The initiative could open a new market for Brazil’s ethanol industry while helping to reduce the maritime shipping sector’s carbon footprint, which currently accounts for about 3% of global greenhouse gas emissions.

BY THE NUMBERS

Maersk, which represents 15% of the global maritime shipping market, is testing a blend with 10% of ethanol. If the whole industry adopted the fuel mix, it could create demand for 50 billion liters of ethanol globally per year. Brazil’s expected production this year is around 35 billion liters.

KEY QUOTES

“This is the first time ethanol is being burned in a two-stroke engine that’s four stories tall – it’s a completely different scale of research and level of concern,” said Danilo Veras, VP of Regulatory Policies at Maersk Latam.

CONTEXT

Maersk, which aims to achieve net-zero emissions by 2040, chose the Brazilian ethanol for the test because it comes from existing sugarcane areas or, when corn-based, mostly from the same fields as soybeans, lowering potential impacts for deforestation, according to Veras.

WHAT’S NEXT

Maersk will complete ethanol blend tests in methanol-powered vessels by October 23, followed by bunker fuel testing. If successful, the company would begin negotiations with major Brazilian ethanol producers, including Raizen, Copersucar, Inpasa, FS and Atvos.

(Reporting by Roberto Samora; Writing by Fernando Cardoso; Editing by Lisa Shumaker)