Everllence and Vale sign ethanol cooperation agreement

he ME-LGIE engine [Image; Everllence]

Everllence and and Brazilian mining giant Vale have signed an agreement to cooperate on the development of ethanol as a marine fuel.

Vale is one of the world’s largest charterers of shipping tonnage and has been a leader in chartering vessels incorporating GHG reducing solutions.

Under the terms of the agreement with Everllence, the companies will develop an advanced ethanol-powered engine – based on the well-proven Everllence B&W ME-LGI (-Liquid Gas Injection) platform – designed to provide a sustainable and viable alternative to conventional fossil-fuel engines. The initiative aims to deliver a solution that combines environmental responsibility with market competitiveness by utilizing ethanol’s unique properties.

These include life-cycle neutrality, reducing carbon emissions compared to fossil fuels. Notable attractions of ethanol are that it contains no sulfur and has very low toxicity, while being biodegradable and water-soluble. Finally, it is liquid at ambient temperatures and pressures, enabling usage of standardied handling procedures during bunkering and on-board handling, simplifying these time-consuming operations.

It is also aligned with Vale’s multifuel, future-ready strategy to increase the flexibility of its chartered-in fleet and foster solutions for the reduction of greenhouse-gas emissions.

The agreement builds on a longstanding, strategic relationship between the two comanies and thier shared ambition to drive sustainable solutions in shipping.

“It’s a pleasure to reach this agreement with Vale, a company that is widely recognized as a strong global advocate for ethanol as an energy-transition fuel,” said Christian Ludwig, vice president, head of global sales & promotion, two-stroke business, Everllence. “This is particularly the case in Brazil and China, two markets where we expect this collaboration to resonate strongly. 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 decarbonization journey of large‑scale shipping, leveraging ethanol as a commercially scalable, globally significant pathway.”

Everllence previously showcased its market-leading position within the ethanol segment with two announcements in, respectively, September and December of 2025. The first was the successful running on ethanol – at all load points – of a 90-bore, two-stroke ME-LGIM (-Liquid Gas Injection Methanol) engine in Japan; the second being the successful running on ethanol – at all load points – of a four-stroke 21/31 dual-fuel GenSet at company test facilities in Denmark.

Ole Pyndt Hansen, senior vce president, head of two-stroke R&D, at Everllence said: “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. 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.”