- Container Ships Lead the Shift Toward Alternative Fuels.
- LNG Dominates as the Fuel of Choice for the Maritime Industry.
- Methanol Orders Surge, Reflecting Interest in Diverse Fuel Options.
Alternative Fuels Insights reports that 515 such ships excluding LNG carriers, were ordered through DNV’s AFI in 2024. This would mean a significant order of 38% more vessels than in the year 2023. However, this signifies that the intensity of decarbonization in this industry is only concentrated in the newly built container ships and car carrier shipments over the past three years, reports Marine Link.
Alternative Fuels Surge for Container Ships
In 2024, 69% of container ship orders were for vessels capable of running on alternative fuels. The shift is attributed to cargo owners responding to consumer demands for sustainability and liner companies preparing to replace ageing fleets. LNG remained the dominant fuel choice, representing 67% of these orders. Combined, container and car carriers accounted for 62% of all alternative fuel orders in 2024.
“As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward. The technological transition is underway, but supply of alternative fuel is still low,” said Knut Ørbeck-Nilssen, CEO of Maritime at DNV.
Methanol Momentum
Methanol experienced substantial traction in 2024, accounting for 166 orders or 32 per cent of the AFI order book. There were 85 container ship orders among the total orders, which underscores the industry’s march toward a diversified fuel pool to reduce greenhouse gas emissions.
While methanol led early in the year, LNG emerged as the top choice by year-end. A total of 264 LNG-fueled vessels were ordered in 2024, doubling the 130 orders from 2023.
Momentum for Ammonia-Fueled Ships
Ammonia has emerged as a promising new fuel in 2024, with 27 orders. Notably, the first non-gas carrier ammonia-fueled vessels were ordered, including 10 ships, mainly in the bulk carrier segment. Although still in its infancy, ammonia is gaining traction in the alternative fuel market.
Doubling of LNG-Fueled Ship Deliveries
Double growth from 2021 to 2024 was in the number of LNG-fueled ships, and this total doubled from a record 169 deliveries made during 2024 to bring it to 641 LNG-powered vessels. It will double once again by the end of the decade according to the AFI order book.
Growth of LNG Bunkering Infrastructure
LNG bunkering infrastructure grew significantly, with bunker vessels increasing from 52 to 64 in 2024. As LNG bunkering infrastructure matures, gaps in supply and demand are expected to widen over the next five years.
“With the EU regulatory package, Fit for 55, setting requirements on a large network of ports to have LNG bunkering infrastructure, it is expected that the availability of LNG in ports will increase,” stated Jason Stefanatos, Global Decarbonization Director at DNV.
The Future of Alternative Fuels in Shipping
Shipping is on track to continue moving toward decarbonization, yet there are also challenges. Production of green methanol is moving slowly, while infrastructure for alternative fuels is immature.
“In the long run, green methanol has the potential to be part of the energy mix along with ammonia. In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price,” Stefanatos added.
Addressing these challenges through collaboration with fuel suppliers, investment in infrastructure, and ensuring safety and training for seafarers will be crucial in advancing the industry’s decarbonization goals.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Marine Link
