From the Field to the Open Sea

Maritime fuel could increase corn demand by 3 billion bushels

A record corn crop like 2025's 17 billion bushels - valued at $70.1 billion - is something to be proud of. But it also raises an important question: where will all of that corn go? This question is something the National Corn Growers Association thinks about and acts on every single day. In fact, the organization recently released a strategy for generating new corn demand in three emerging sectors. One of those is sectors is the maritime industry, with an eye towards ethanol setting sail - and not only as exports. The same cargo ships that carry corn, ethanol, and other goods could soon run on corn-based ethanol.

Why does maritime fuel matter?

Global shipping is responsible for 3% of global greenhouse gas emissions, and the industry is searching for practical, non-petroleum-based, alternative fuels. Ethanol can help meet that need, displacing the fossil fuels used today. The maritime fuel industry is taking notice.

"Ethanol is relevant to explore because it has an established global market and existing infrastructure, and it shares properties similar to methanol," a Maersk spokesperson stated in a recent Reutersarticle.

For corn farmers, this means a new market that will expand corn demand, and ultimately, farm profitability. With the appropriate international frameworks, capturing just 10% of the global maritime fuel market would translate to 3 billion bushels of demand, bringing it close to last year's total U.S. corn exports.

Kentucky farmer Josh Lancaster sees this market as a huge benefit for the future of corn and a great solution for the maritime industry.

"As the world tries to meet the International Maritime Organization's decarbonization targets, ethanol produced from corn is a fuel that has already proven to work," he says

What will it take to get ethanol into this market?

The maritime fuels industry has made efforts to prove ethanol works and fits in the global shipping industry. Here is a look at two examples...

1. Testing 100% ethanol-powered engines. The shipping company Maersk has completed a large-scale ethanol fueling operation for its dual-fuel ship. This is the second time the vessel has operated on 100% ethanol and helped test fueling procedures and supply chains at a larger scale, providing even more proof that the switch is possible.
2. New ethanol-powered engines developed. Swiss marine power company WinGD recently announced the production of an ethanol-powered engine, with multiple orders already secured.

What still needs to happen?

NCGA is advocating for better approaches to carbon marketing, as well as beneficial policies.

Fair, Accurate Modeling: Since the maritime market is interested in sustainable fuels, it's critical that corn-based ethanol is evaluated fairly. The frameworks most often used to account for carbon intensity do not fully recognize the vast improvements farmers have made in sustainability and efficiency in recent decades.

This can change with a science-based carbon accounting framework that recognizes these gains, such as Department of Energy's Argonne National Lab's GREET model, along with transparent methods to analyze full lifecycle impact. In other words, NCGA is fighting for science-based, math-driven methods that give corn farmers the credit they deserve.

Beneficial Policy: NCGA is also exploring ways the federal government could help spur success with this market. That could look like:

• Ensuring sustainability metrics, like emissions, that customers use are based on accurate data.
• Working with administration officials, from agriculture to energy and environmental protection to trade, to secure recognition of crop-based renewable fuels that would help grow markets for U.S. ethanol exports.

The Bottom Line

"NCGA's work to develop the maritime fuel market aims to build consistent annual demand for U.S. corn - the kind that supports corn farmers across America," said Ohio Farmer and NCGA President Jed Bower. "This market will take time to develop, and that's exactly the kind of long-term planning that our national commodity organizations are best suited for. The work we do today could mean my children have a better chance to return to the farm, should they choose to do so."