As global pressure mounts on the shipping industry to decarbonise, Danish shipping giant Maersk is turning to ethanol as a scalable, alternative green fuel to reduce its reliance on Chinese production and promote a more geopolitically balanced energy transition.
With China currently dominating the supply of green methanol — a leading candidate in the shipping sector’s shift toward cleaner fuels — Maersk is actively exploring ethanol as a strategic alternative. The rationale is both environmental and political: by increasing the role of the US and Brazil, the two largest producers of ethanol, Maersk aims to distribute the benefits of the green transition across more countries.
A Strategic Shift Toward Ethanol
Maersk CEO Vincent Clerc emphasized the need for a more globally inclusive energy landscape. “If all the upside is only in China, then some countries will object,” he stated. Maersk believes that using ethanol can reduce geopolitical concentration, and perhaps even ease resistance from key players like the United States, which blocked a global climate deal for shipping in October 2025.
Ethanol’s attractiveness lies in its existing infrastructure and surplus capacity. Both the US and Brazil have well-established ethanol production industries, often linked to large-scale agricultural sectors. According to Clerc, this overcapacity offers the potential to rapidly scale green fuel deployment with minimal green premiums — a critical factor in maintaining cost-competitiveness during the transition period.
Pilot Programs Already Underway
Maersk began trials with ethanol in October 2025, first blending 10% ethanol with 90% methanol aboard its Laura Maersk container ship. By December, the blend reached 50-50, and the company aims to trial 100% ethanol in the near future.
These developments are not without challenges. Clerc acknowledged ongoing issues with fuel certification and production standards. However, he stressed ethanol’s potential to deliver rapid impact, thanks to its scalability and broad international supply base.
Meanwhile, green methanol production outside of China has stalled. For example, Ørsted abandoned a major e-methanol project in Sweden in 2024, reinforcing China’s lead in this market. According to Maersk, this reliance on a single country creates systemic risks for fuel supply — especially since not all of its global fleet calls at Chinese ports.
Broader Implications for Global Trade and Climate Policy
Shipping accounts for about 3% of global greenhouse gas emissions and remains one of the most difficult sectors to decarbonise. Maersk’s strategy could influence international climate negotiations, particularly at the International Maritime Organization (IMO), where decisions have often stalled due to national interests and unequal economic upside.
Diversifying green fuel sources could help “break the deadlock,” Clerc said. It’s not just about ships — it’s about aligning global incentives to foster collaboration in the climate transition.
This shift also plays into domestic US politics. Ethanol is a crucial product for American farmers and agribusiness — important constituencies for Donald Trump, whose administration has previously resisted climate regulations. Increased ethanol use in international shipping could offer a policy win without requiring ideological concessions, potentially softening the opposition.
Market Conditions Remain Robust
Maersk’s pivot to ethanol comes amid a generally strong year for container shipping. Despite new US tariffs and other geopolitical tensions, demand for Chinese exports has kept the sector buoyant. Clerc noted that current market strength shows “no sign of abating.”
Still, the industry is bracing for overcapacity in 2026. Many competitors ordered new vessels during the post-pandemic boom, and the influx is expected to pressure rates. However, Maersk views the situation as manageable, given six years of previous undersupply. Any oversupply is likely to be short-lived and not significantly disruptive, Clerc said.