The Rise of Alternative-Fueled Vessels in the Maritime Industry

The year 2024 marked a significant milestone for the maritime industry as orders for alternative-fueled vessels reached unprecedented levels, with liquefied natural gas (LNG) leading the charge, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.

A total of 515 alternative-fueled ships were ordered, excluding LNG carriers, representing a 38% year-on-year increase compared to 2023. This surge in orders underscores the industry’s commitment to decarbonization and sustainability.

Container and Car Carrier Segment Driving Growth

The growth in alternative-fueled vessel orders has been largely driven by the container and car carrier newbuild boom over the past few years. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, with LNG being the preferred choice (67%).

Container and car carrier segments combined made up 62% of all alternative fuel orders in 2024, reflecting a shift towards more sustainable practices in response to consumer demands and regulatory pressures.

Diverse Fuel Portfolio

Shipowners in 2024 also showed interest in multiple alternative fuels, with 166 methanol orders added to the AFI orderbook. Methanol accounted for 32% of the total orders, with most orders (85) in the container segment.

While methanol initially drove newbuilding orders, LNG emerged as the industry’s fuel of choice by the end of the year, with 264 LNG vessel orders placed in 2024, more than double the previous year.

Promising Momentum for Ammonia

Ammonia also gained traction in 2024, with 27 orders placed for ammonia-fueled vessels. The bulk carrier segment saw the first non-gas carrier ammonia-fueled vessel orders, signaling the emergence of ammonia in the alternative fuel market.

Deliveries and Bunkering Infrastructure

The number of LNG-fueled ships in operation doubled between 2021 and 2024, with a record 169 deliveries in 2024. By the end of the year, 641 LNG-powered ships were in operation, a number expected to double by the end of the decade.

While LNG bunkering infrastructure is maturing, there is still a significant gap between supply and demand. The development of appropriate infrastructure for alternative fuels, including bunkering facilities, is crucial to stimulate long-term fuel production.

Future Outlook

Market conditions, infrastructure development, and regulatory requirements will continue to shape the demand for different fuels in the maritime industry. Green methanol and ammonia hold potential as part of the energy mix, alongside LNG as a bridging fuel option.

As the industry transitions towards decarbonization, collaboration among stakeholders, investment in upskilling and training, and the development of sustainable fuel supply chains will be key to achieving long-term environmental goals.

Overall, the rise of alternative-fueled vessels signifies a positive step towards a more sustainable and environmentally conscious maritime industry.