Alternative fuel newbuilding contracts up 48% in first four months

DNV’s Alternative Fuel Insight (AFI) platform logged 23 new orders in April of which the largest portion came from methanol with 12 vessels contracted and seven LNG-fuelled vessels.

DNV noted that all the methanol-fuelled orders were for tankers – a sector that had previously seen low uptake of alternative fuels, although it’s also had low ordering over last couple of years.

The remaining four alternative fuelled orders were for ammonia-powered vessels, with momentum being seen for ammonia despite it still being under development.

Jason Stefanatos, Global Decarbonization Director at DNV Maritime commented: “It is also notable that four new orders have been placed for ammonia fueled vessels, on top of the five ordered in the first quarter of 2024. Although we still have a long way to go before a maritime eco-system for ammonia is fully developed, this provides more evidence that investment in these vessels is on the rise.” 

DNV said the figures for alternative fuelled vessel orders as whole in April confirmed an overall trend of steady increase in newbuild contracting. AFI tracked 93 newbuilding orders in the first four months of 2024 an increase of 48% year-on-year.

Stefanatos said: “With the slow activity of March now behind us, these numbers for April confirm an increasing shift in the new order market towards alternative fueled vessels, with a notable surge in new orders from the tanker segment. Methanol continues to have the highest number of orders so far in 2024, with new orders totaling 47 - a 42% increase compared to the same period in 2023.”

Related:Wärtsilä bags China's largest methanol newbuild engine order

The first alternative fuelled vessels order for May have already been placed with Trafigura contracting four ammonia dual-fuel medium sized gas carriers at Hyundai Mipo Dockyard, as Seatrade Maritime News reported on 2 May.