US Ethanol Emerges as Viable Maritime Biofuel, Study Finds Spare Capacity Could Supply Global Methanol Fleet

## US Ethanol Positioned to Power Global Methanol-Capable Fleet, Study Finds The United States holds significant untapped potential to supply the global shipping industry with ethanol as a low-carbon marine fuel, according to a new study published by MEMA, a platform of the Global Centre for Green Fuels. The research finds that the US currently has approximately 2 billion gallons per year of spare ethanol production capacity — a surplus that could be redirected to meet surging maritime biofuel demand without requiring major new infrastructure investment. Critically, the study concludes that ethanol is compatible with existing methanol-capable marine engines and bunkering infrastructure, lowering the barrier to adoption for shipowners and operators who have already transitioned to or ordered dual-fuel methanol vessels. This compatibility positions ethanol as a near-term, practical alternative rather than a speculative future fuel. ### Why This Matters for Shipping The maritime industry is under mounting regulatory pressure to decarbonise, with the International Maritime Organization's (IMO) revised greenhouse gas strategy targeting net-zero emissions by or around 2050. Methanol has gained considerable traction as a transition fuel, with major carriers including Maersk commissioning methanol-ready newbuilds. However, green methanol supply remains constrained and expensive. Ethanol, by contrast, benefits from a mature US production and distribution ecosystem built around the domestic road transport sector. The MEMA study argues that redirecting a portion of this existing capacity toward maritime applications could provide a cost-competitive, lower-carbon bunkering option at scale — and relatively quickly. The findings are particularly timely as the IMO's FuelEU Maritime regulation and Carbon Intensity Indicator (CII) requirements continue to tighten, pushing operators to seek credible, available alternatives to conventional heavy fuel oil. ### Infrastructure Compatibility a Key Advantage One of the study's most significant conclusions is that ethanol does not require a parallel bunkering buildout. Ports and terminals already equipped to handle methanol could, with appropriate modifications, accommodate ethanol — reducing capital expenditure for both fuel suppliers and vessel operators. The report positions the US as a strategic supplier in the emerging green fuels market, at a time when energy geopolitics and fuel security are top concerns for shipping companies and flag states alike. Industry observers will be watching closely to see whether the findings accelerate commercial interest from bunker suppliers and shipowners, and whether ethanol gains formal recognition under key regulatory frameworks as an eligible compliance fuel. *Source: PR Newswire / MEMA, Global Centre for Green Fuels*