US corn ethanol enters the marine fuel market

Source:  Spglobal
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Maersk has completed the first commercial ship-to-ship bunkering of a deep-sea container vessel in the US using 100% domestically produced corn ethanol. The operation took place at the Port of Mobile on the Tangier Maersk, which can run on both conventional marine fuels and alcohol-based alternatives.

The company is testing ethanol as one option for reducing emissions from maritime transport. The bunkering operation is expected to provide practical data on vessel performance, infrastructure, sourcing and the logistics required for wider use of the fuel.

For the US agricultural sector, development of this market could create an additional outlet for corn. The US is the world’s largest ethanol producer and already has an established production and distribution infrastructure.

Maersk stressed, however, that ethanol use in shipping remains at the testing stage. Further expansion will depend on fuel availability, regulatory frameworks and the readiness of port infrastructure.

Interest in alternative marine fuels is increasing as shipping faces tighter emissions requirements. If ethanol gains commercial traction, maritime transport could become a new source of demand for the US corn market.

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