Wärtsilä sees potential for ethanol-powered vessels in Brazil

Wärtsilä sees potential in the Brazilian market for ethanol-powered vessels, the company's local managing director, Jorge Alcaide, told BNamericas. 

Alcaide said the Finnish company's marine business unit is developing projects with biofuel, as well as methanol. 

“This is a great opportunity for Brazil, as it is one of the largest ethanol producers in the world,” he said. 

“With all the focus on decarbonization, the agenda on 'environmentally friendly' fuels is becoming even more relevant,” Alcaide added.

The company recently signed a memorandum of understanding with Compagnie Maritime Monégasque (CMM) to build the world's first ethanol-powered support vessels, which operate in the offshore oil and gas industry.

Wärtsilä has carried out tests at its laboratory in Vaasa, Finland, confirming the ability of an engine developed by the company to operate efficiently with a variety of fuels including diesel, biodiesel, heavy fuel oil (HFO), methanol and ethanol.

CMM has obtained preliminary financial approval from the federal merchant marine fund to build 10 offshore support vessels in Brazil. 

The incorporation of ethanol into the operational strategy of these vessels is in line with CMM's vision of developing a fleet with cleaner fuel for operations both in Brazil and abroad. 

“Our aim is to build these ships in Brazil, ensuring that our customers can achieve substantial reductions in greenhouse gas emissions, presenting a viable alternative for a greener future in the maritime sector,” Christophe Vancauwenbergh, CEO of CMM, said in a statement.

BIOFUEL STIMULUS

Brazil’s congress approved in September the so-called fuel of the future bill (PL 528/2020), which establishes guidelines for the development of sustainable fuels. 

Local experts told BNamericas the law will stimulate biofuel demand and provide legal security for investors.  

A study by consultancy Oliver Wyman estimates it could create additional annual demand of 11.7Bl of liquid biofuels and 3.4Bm3 of biomethane and require up to 58bn reais (US$10.4bn) of investment in increased capacity.