The transition toward alternative-fuelled vessels is seen as a cornerstone of the shipping industry’s decarbonization efforts. However, the latest data from DNV’s Alternative Fuels Insight (AFI) platform shows a slowdown in new orders during August 2025. For the first time since 2018, no new alternative-fuelled vessel orders were registered, highlighting the challenges the sector faces in balancing demand, supply, and long-term sustainability goals.
A Decline in Orders Amid Market Slowdown
According to Kristian Hammer, Product Manager AFI and Senior Consultant at DNV, alternative-fuelled vessel orders have been noticeably slow in recent months. In July, 28 new orders were placed, but August recorded zero, marking a sharp contrast. Despite this pause, two LNG bunkering vessels were added, signaling continued confidence in LNG infrastructure development.
So far in 2025, 178 alternative-fuelled vessels have been added to the global orderbook a 49% decline compared to the same period in 2024, when 350 vessels were ordered. This decline reflects not just reduced enthusiasm for alternative fuels but also a generally slower newbuild market overall this year.
Growth Potential and Future Outlook
Despite the short-term slowdown, long-term forecasts remain optimistic. DNV’s Maritime Forecast to 2050 projects that the alternative-fuelled fleet will nearly double by 2028, with the capacity to burn 50 million tonnes of oil equivalent (Mtoe) of non-oil fuels annually by 2030. LNG is expected to dominate this transition, contributing 44 Mtoe, while methanol-fuelled vessels are projected to add another 6 Mtoe.
This growth shifts attention to fuel producers, who will need to supply between 70 and 100 Mtoe of low-GHG fuels by 2030. Shipping alone will require about 25 Mtoe nearly one-third of the global supply if it is to meet the International Maritime Organization’s (IMO) first major decarbonization milestone of reducing greenhouse gas emissions by 20% by 2030.
The absence of new orders in August 2025 may raise concerns about the pace of transition, but the overall trajectory for alternative fuels in shipping remains positive. While LNG continues to lead, methanol and other low-GHG fuels are expected to gain traction as the industry moves closer to its 2030 and 2050 decarbonization goals. The challenge ahead lies not only in securing vessel orders but also in ensuring adequate fuel production and supply chains to meet growing demand.
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Source: MANIFOLD TIMES
