Fueling a New Course in Maritime Shipping

As the global shipping industry looks for ways to reduce emissions, our favorite renewable fuel is beginning to attract attention:ethanol.

Ethanol is an incredibly important market for Nebraska corn,but maritime shipping could open an entirely new source of demand. A new National Lab of the Rockies report highlighted ethanol's potential as a lower-carbon fuel for maritime transportation. The report points out that ethanol has a 35%higher energy content than methane. On top of lower toxicity, if spilled,ethanol biodegrades much quicker than standard fuel.

The concept is beginning to move beyond research. Only this past week, Maersk completed the first commercial ship-to-ship ethanol bunkering of a container vessel in the United States, using 100% bio ethanol produced in the U.S. as part of an alternative-fuel trial.

For agriculture, the potential market is significant. National Lab of the Rockies report states that even modest adoption of ethanol in marine shipping could generate as much as 2 billion gallons of new ethanol demand,creating another long-term outlet for corn producers.

Despite this, challenges remain. Ethanol is not yet a regular marine fuel, and broader adoption will depend on economics, fuel availability,sustainability requirements, infrastructure, and regulation. Even still,maritime fuel represents an intriguing opportunity for the ethanol and corn markets. If shipping companies increasingly turn to lower-carbon fuels, ethanol could give agriculture a chance to help fuel not only the nation's cars and trucks, but also the ships carrying goods around the world.

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