Marine Ethanol: Unlocking the US Opportunity. Full study now available.
Shipping is building a methanol-capable fleet faster than low-emission methanol supply can grow. Ethanol can help close that gap. It can run in the engines and use the bunkering infrastructure built for methanol with minimal modification, and the United States already produces it at record volumes.
That is the central finding of Marine Ethanol: Unlocking the US Opportunity – Production, technology, infrastructure and market readiness. The study is published today by MEMA, a platform of the Global Centre for Green Fuels, with ABS Sustainability Center in Houston as Knowledge Partner. It builds on the Executive Summary we released at SIBCON 2026 in October. It covers U.S. ethanol supply and infrastructure, technical readiness, emissions, economics, maritime use cases and policy pathways.
Key findings
A fuel for the methanol-capable fleet - More than 300 methanol-capable vessels are in service or on order. Ethanol can serve them on its own or blended with methanol.
Large domestic supply - The U.S. produced 16.4 billion gallons of ethanol in 2025, 51% of global output, and exported a record 2.18 billion gallons to around 80 countries. Most exports leave through Gulf Coast terminals that are also major bunkering hubs.
Spare capacity for a new market - U.S. capacity of 18.5 billion gallons a year leaves around 2 billion gallons of headroom. International shipping burns about 300 million tonnes of fuel a year. In the study’s illustrative scenarios, a 1% share would need around 1 billion gallons, well within spare capacity. A 5% share by the mid-2030s would need around 5 billion gallons.
Economic value at home - Every 1 billion gallons supplied as marine fuel is estimated to generate $5–7 billion in economic activity and support 30,000–50,000 U.S. jobs across farming, biorefineries, logistics, ports and shipyards.
Technically mature, with commercial deployment emerging - Ethanol is assessed at technology readiness level 8–9. All three major marine engine makers have validated ethanol engines, with commercial engines expected from 2027. The U.S. Coast Guard bunkering framework has been operational since July 2025.
Strong emissions performance - Compared with heavy fuel oil, ethanol virtually eliminates SOx. It cuts NOx by 40–94%, depending on engine technology, and particulate matter by 90–99%, without scrubbers. U.S. corn ethanol already delivers around 51% well-to-wake GHG reduction against VLSFO.
Low production cost - Net production cost, after co-product revenue, is below US$1 a gallon. That is low relative to other low-emission marine fuels.
From analysis to operation
Ethanol bunkering is moving from trials to commercial operation. On 28 September 2026, Tangier Maersk completed the first publicly announced U.S. ship-to-ship ethanol bunkering of a deep-sea container vessel in Houston, using U.S.-produced corn ethanol.
Regulation is moving too. FuelEU Maritime is already in force, and the IMO is expected to decide next steps on its Net-Zero Framework at an extraordinary session on 4 December, directly after MEPC 85.
“Ethanol is moving beyond pilots, and this study shows the United States has the production base and export infrastructure to supply shipping at scale. The next challenge is consistency. As international bunkering grows, shipping needs standardised and fungible marine fuel specifications, together with traceable feedstocks and a robust chain of custody, so that ethanol from different producers and regions can be used with confidence.” — Clarence Woo, Managing Director, Global Centre for Green Fuels
Download the full study
Read the press release
Join MEMA
MEMA brings together fuel producers, shipowners, ports, engine makers, classification societies and regulators to accelerate the adoption of ethanol and methanol as marine fuels. Members help shape technical standards, operational readiness and market development for alcohol marine fuels.
Participation is free of charge during the current consultative phase.
ABS provided the technical analysis for this study as Knowledge Partner. The views and recommendations are those of the Global Centre for Green Fuels.