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Market Chatter: First Ethanol-Powered Container Ship Begins Voyage From Brazil

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A container ship powered by Brazilian-produced ethanol fuel left the port of Santos on Tuesday in what is the first such voyage and an important technological advance toward tackling emissions from shipping, Bloomberg reported.

The Asia-bound CMA CGM Iron, which can run on methanol, ethanol and conventional fossil bunker fuel, is heading towards China with planned stops in Sri Lanka and Singapore.

The voyage will be a major test for Brazil's biofuel sector as the use of ethanol for ship propulsion could boost demand for biofuel producers and farmers. Brazil is the world's second biggest producer of ethanol after the US, the report said.

The voyage comes as the enforcement of the International Maritime Organization's new net-zero rules for maritime transportation approaches. The formal adoption of the new rules could help ethanol and other cleaner fuels to gradually replace oil as the primary energy source in shipping, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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