LNG dominates in record year for alternative-fuelled vesselsLNG dominates in record year for alternative-fuelled vessels

LNG dual-fuelled tonnage accounted for just over half of all alternative fuelled vessels order last year according to DNV’s Alternative Fuel Insights (AFI) platform. There were 264 LNG-fuelled newbuildings contracted last year, 51.6% of the total, excluding LNG carriers, and an increase of 103% compared to 2023.

The other main contributor was methanol dual-fuel newbuilds with some 166 ordered, up 4% on the previous year. There was also growing interest around ammonia fuelled ships with 27 ordered in 2024, up 238% on 2023. There also 51 LPG powered vessels order and seven hydrogen fuelled.

Despite being a fossil fuel LNG saw resurgence in 2024 as shipowners and operators are concerned over the availability of green fuels, in particular methanol, where there is now significant fleet of vessels on order.

Knut Ørbeck-Nilssen, CEO Maritime at DNV said: “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. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future.”

Related:Record investment in alternative fuel tonnage in 2024

Fuel availability is not the only issue but also seafarers trained in using alternative fuels. “It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training,” he said.

DNV noted the growth in alternative fuelled vessel orders last year was driven by the container ship and car carrier segments, which comprising 62% of vessels all contracted.

“In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and liner companies preparing to replace older tonnage,” DNV commented.

In terms of alternative-fuelled vessels in operation it is LNG that dominates with 691 in service by the end of 2024. According to AFI this number is set to double by the end of the decade.

DNV said that bunkering infrastructure remained under-developed and the gap between demand and supply was expected to widen over the next five years. By the end of 2024 there were 64 LNG bunkering vessels in service.

Jason Stefanatos, Global Decarbonization Director at DNV said: “Market conditions, infrastructure development, fuel production updates, and cargo owners' needs are all shaping the demand for different fuels, both in the short and long term.

“The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia.”