The United States has submitted a formal proposal to the International Maritime Organization calling for a redesign of how the agency evaluates deforestation risks in crop-based marine fuels — a move that could significantly reshape the outlook for ethanol as a shipping fuel, according to Ship & Bunker.
Challenging the Current Methodology
In a submission to the 21st session of the Intersessional Working Group on GHG Emissions from Ships (ISWG-GHG 21/3/21), Washington argues that the IMO’s 2024 Life Cycle Assessment (LCA) Guidelines contain a significant flaw in how they handle indirect land use change (ILUC). According to Ship & Bunker, the US contends that measuring ILUC risk within the confines of individual biofuel projects is scientifically unsound — since, by definition, indirect land use change takes place beyond those project boundaries, rendering such assessments largely ineffective.
A Regional Approach to Deforestation Risk
As an alternative, the US proposes that the IMO assign ILUC risk based on observed deforestation rates in the broader region surrounding feedstock production areas. Ship & Bunker reports that this regional methodology would effectively disqualify fuels originating from high-deforestation zones, such as parts of Brazil and Southeast Asia.
While the submission makes no explicit reference to American ethanol, the proposed framework would favour fuels produced in temperate, low land conversion agricultural regions — a description that closely fits the U.S. Corn Belt. Ship & Bunker notes that the US and Brazil are the world’s two largest ethanol producers.
Ethanol’s Growing Appeal in Marine Shipping
The timing of the proposal coincides with rising interest in ethanol as a viable bunker fuel. Ship & Bunker reports that shrinking road transport demand — driven by electric vehicles displacing gasoline consumption — is prompting ethanol producers to explore new markets. Marine shipping, a sector with limited commercially viable decarbonisation options, represents a significant opportunity.
At approximately $600 per tonne in the United States, ethanol is considerably more affordable than alternatives such as green methanol. Its chemical compatibility with methanol also means existing dual-fuel engines and storage systems can handle both fuels, lowering the barrier to adoption.
Engine manufacturer WinGD described ethanol as a potential “game-changer” for the industry’s energy transition in a recent interview with Ship & Bunker, while container line Maersk has already been conducting trials using ethanol-methanol blends at sea.
MEPC 84 on the Horizon
The IMO working group has been invited to integrate regional ILUC risk assessment into its LCA framework ahead of MEPC 84, which is scheduled to convene in London from April 27 to May 1, as reported by Ship & Bunker.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
