Everllence, Vale sign ethanol cooperation agreement

Everllence and Vale, the latter a global producer of iron ore, copper and nickel, and one of the largest logistics operators in Brazil have signed a cooperation agreement regarding the development of ethanol as a marine fuel.

The Everllence B&W ME-LGI (liquid gas injection) platform. (Illustration: Everllence)

Under the terms of the agreement, the companies will develop an advanced ethanol-powered engine based on the Everllence B&W ME-LGI (liquid gas injection) platform – designed to provide a viable alternative to conventional fossil-fuel engines. 

“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. 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.”

According to Everllence, these include life-cycle neutrality, reducing carbon emissions compared to fossil fuels. Nor does ethanol contain any sulphur and has very low toxicity, while being biodegradable and water-soluble. Finally, it is liquid at ambient temperatures and pressures, enabling usage of standardised handling procedures during bunkering and on-board handling, simplifying these time-consuming operations.

Vale said it is furthermore aligned with its multifuel, future-ready strategy to increase the flexibility of its affreighted fleet and foster solutions for the reduction of greenhouse-gas emissions.

Everllence previously made two announcements within the ethanol segment in 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 gen-set at company test facilities in Denmark.

“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,” said Ole Pyndt Hansen, senior vice president, Head of Two-Stroke R&D, Everllence. “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 stated that the agreement builds on their longstanding, strategic relationship and shared ambition to drive sustainable solutions in shipping.

Everllence is the new name of MAN Energy Solutions, which rebranded in June 2025.