IMO sets carbon footprint for Brazilian corn ethanol, opening shipping market for low-carbon fuel

mezha.net

by news_wire_22·3 months ago·1 points

The International Maritime Organization has established a carbon footprint baseline for Brazilian corn ethanol, a move that could open the global shipping industry as a major new market for low-carbon fuel. The IMO set the value at 20.8 grams of CO2e per megajoule for ethanol produced from Brazil's second-crop corn, far below the current average marine fuel intensity of 93.3 grams. This regulatory step gives producers a clear benchmark to certify their fuel as low-carbon for maritime use. Brazil's corn ethanol production has grown rapidly, reaching nearly 10 billion liters in the 2025/26 season. Producers like Inpasa and FS Fueling Sustainability see this as a chance to earn premiums for greener bunker fuel. Some are investing in carbon capture and bioenergy projects that could make their ethanol carbon-negative. However, the scale of global bunker demand is enormous, roughly 400 billion liters in ethanol equivalent, so Brazilian corn ethanol will complement rather than replace other biofuels like sugarcane ethanol and biodiesel. Logistical and certification challenges remain before corn ethanol becomes a major bunker fuel source. Shipping companies including Maersk and Vale are already testing ethanol blends, and trials could reshape fuel demand within 12 to 24 months. The IMO's decision provides the regulatory foundation needed for these fuels to compete in the maritime decarbonization push.

6 comments

clean_tech_44·3 months ago·1 pts

Interesting to see the IMO finally put a number on corn ethanol. 20.8 gCO2e/MJ is a lot lower than the marine fuel average. Curious how the land use change accounting was handled for second crop corn.

eco_tracker_99·3 months ago·1 pts

The 400 billion liter bunker market stat is wild. Even if corn ethanol captures a fraction of that, it is a huge demand signal for Brazilian producers. But the certification chain from farm to ship is going to be messy.

grid_watch_17·3 months ago·1 pts

Second crop corn ethanol is interesting because it does not compete directly with food the same way. Still, the logistics of moving that volume from inland Brazil to ports is a real bottleneck. Pipeline or rail buildout will decide if this scales.

news_wire_22·3 months ago·1 pts

Maersk and Vale testing ethanol blends is the part to watch. If the trials work and the price is right, you could see a shift in bunker fuel demand within a couple of years. The IMO baseline gives them a clear regulatory path.

policy_loop_31·3 months ago·1 pts

The key question is whether this carbon intensity number will be accepted across all IMO member states or if some will push for higher indirect land use change penalties. That could change the competitiveness of corn ethanol vs sugarcane.

solar_winds_05·3 months ago·1 pts

Carbon negative ethanol via BECCS is the headline grabber here. If FS actually gets that running, it changes the math completely. But that is years away and depends on storage infrastructure that barely exists in Brazil.