Fueling the future: Where we stand with alternatives

The maritime industry has been actively seeking cleaner, more sustainable fuels and energy sources to reduce its environmental impact. As the sector works to cut emissions, these alternative fuels are becoming increasingly crucial in helping meet global climate goals, such as the IMO’s target to reduce greenhouse gas emissions by 50% by 2050.

Over the past year, there has been significant exploration of options like ammonia and methanol, alongside innovations in wind propulsion systems and nuclear power, all of which have gained great attention as potential solutions for a greener future in maritime transport.

Wind assisted propulsion systems (WAPS)

In early 2024, the UK allocated £3.7 million for a wind propulsion project through the Department for Transport (DfT), with Maritime Minister Lord Davies stressing the need for transformative solutions. Additionally, the Clean Maritime Demonstration Competition (CMDC) Round 4 awarded £2 million to Anemoi to assess their Rotor Sails.

In February 2024, Anemoi also received Approval in Principle (AiP) from the Republic of the Marshall Islands for their Rotor Sails. Meanwhile, companies like Eastern Pacific Shipping and a Klaveness Combination Carriers subsidiary partnered with bound4blue for the first installations of wind propulsion systems in their fleets.

Highlights

• Grain de Sail revealed the world’s largest wind-powered containership in October 2024. Later, in December 2024, just before the year end, Vale’s Very Large Ore Carrier (VLOC), Sohar Max, became the largest carrier ever to feature wind propulsion technology.
• Wallenius Marine started conducting advanced wind tunnel tests in Gothenburg to develop the world’s first wind-powered Pure Car and Truck Carrier (PCTC) vessel.
• Norsepower officially opened the world’s first dedicated rotor sail factory in Dafeng, China, in November 2024, marking a milestone in the advancement of wind propulsion technologies.
• Mitsui O.S.K. Lines (MOL) and Chevron Shipping partnered up to install wind propulsion on an LNG carrier making it the first to be equipped with such technology.
• The MV Canopée was the world’s first hybrid propulsion commercial cargo vessel.
• Bureau Veritas (BV) in a report published on October 2024, highlighted that by the end of July 2024, over 105 wind propulsion systems had already been installed on more than 45 ships globally. BV forecasts that this is just the beginning and that up to 30% of the world’s fleet could embrace wind power by 2050.

Methanol and Ammonia

The past year found methanol to have an uptake, with DNV’s alternative fuel database reporting that 47 methanol fueled vessels were added in the first four months of 2024, reflecting a 42% surge compared to 2023.

Methanol retrofits and methanol bunkering came to the forefront with several companies and maritime hubs investing in methanol initiatives.

Ammonia on the other hand showed promise as a fuel but challenges still remain. According to SGMF, the technical readiness of the machinery and systems needed to safely use ammonia as a marine fuel was at a low level compared to other fuels as of 2024.

However, Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) conducted a survey in October 2024, revealing that 50% of seafarers were willing to work with ammonia as a fuel.

Highlights

Methanol

• Pacific Ocean Engineering (Zhoushan) Co., Ltd. delivered the world’s first methanol dual-fuel retrofit containership.
• MAN Energy Solutions conducts world’s first VLCV methanol retrofit.
• Tsuneishi launched the world’s first methanol dual-fuel bulk carrier.
• Svitzer signed a contract with the Turkish shipyard Uzmar to construct the world’s first battery-methanol powered tugboat.
• Mitsubishi entered a partnership to build Japan’s first methanol-powered RORO ships.
• X-Press Feeders, Global Energy Trading Pte Ltd (GET), and PSA Singapore (PSA) completed the first simultaneous methanol bunkering and cargo operation (SIMOPS) in Singapore.

Ammonia

• The Norwegian Directorate for Civil Protection gave their approval to the construction of the planned ammonia bunkering facility at Fjord Base in Florø, Norway. 
• MISC entered Time Charter Party Contracts (TCP) with PETCO Trading Labuan Company Ltd (PTLCL) through its petroleum arm, AET, for the world’s first two ammonia dual-fuel Aframaxes.
• The Korean Registry announced the grant of an Approval in Principle (AiP) for the 150K ultra-large ammonia carrier developed by Samsung Heavy Industries (SHI) and signed a Memorandum of Understanding (MoU) with them for the development of 9,300 TEU ammonia-fueled containerships at Posidonia 2024.

Nuclear Power

The International Maritime Organization (IMO) Secretary-General, Arsenio Dominguez, confirmed that nuclear propulsion is being actively considered as a future marine fuel solution within the organization’s Marine Environmental Protection Committee’s (MEPC) processes making 2024 a particularly important year for nuclear power in shipping.

Furthermore, the Lloyd’s Register Maritime Decarbonisation Hub, in its June 2024 Zero-Carbon Fuel Monitor, highlighted the increasing readiness of nuclear propulsion technology for maritime applications.

Highlights

• HD Hyundai Shipbuilding & Offshore Engineering (KSOE) disclosed the establishment of the Nuclear Energy Maritime Organization (NEMO) with Bureau Veritas being a founding member.
• The Korea Research Institute of Ships and Ocean Engineering (KRISO) launched a research program to develop core technologies for small modular reactor (SMR)-powered ships and floating SMR power generation platforms from 2024 through 2028.
• Lloyd’s Register (LR) joined forces with Zodiac Maritime, HD KSOE and KEPCO E&C in a development project (JDP) for the research and development of nuclear-propelled ship designs, including bulk carriers and containerships.

Hydrogen and Biofuels

In the past year, significant progress was made in the development of alternative fuels for maritime transportation, with several hydrogen projects reaching fruition. Both UK government and EU-funded initiatives have been exploring hydrogen power as a means to reduce reliance on conventional fuels in this sector.

Additionally, biofuels, such as Hydrotreated Vegetable Oil (HVO) and Fatty Acid Methyl Ester (FAME), were tested in various bunkering projects and trials throughout 2024. Notably, the UK’s National Oceanography Centre (NOC) conducted a trial using HVO as a fossil-free marine fuel, evaluating its performance on two of the country’s Royal Research Ships (RRS), James Cook and Discovery.

It is worth noting that Singapore has become a biofuel bunkering hub, with TotalEnergies Marine Fuels conducting biofuel bunkering operations on vehicle carriers and containerships.

LNG & LPG

Liquefied natural gas (LNG) had a strong start in 2024, with a record number of LNG-fueled ships delivered in January, according to DNV. The year saw continued growth in the construction and delivery of LNG-fueled vessels, including the world’s largest LNG dual-fuel car carrier, SAIC Anji Sincerity, which was officially named by SAIC Group early in the year.

Additionally, the Maritime and Port Authority of Singapore (MPA) invited Expressions of Interest (EOI) for LNG bunkering, reflecting growth in the sector. LNG bunkering in Singapore grew from 16,000 tonnes delivered in 2022 to over 385,000 tonnes between January and October 2024.

Liquefied Petroleum Gas (LPG), a widely available fossil fuel with emissions benefits, also gained momentum in the maritime sector. In June 2024, Lloyd’s Register (LR) predicted continued growth in the market for dual-fuel LPG engines. That same month, NYK and Astomos introduced a jointly owned LPG dual-fuel carrier. However, by the year’s end, VesselsValue’s Q4 2024 Market Outlook Summary reported a decline in demand for container ships and LNG/LPG vessels, indicating a shift in market dynamics.

This past year underscored the maritime industry’s growing need for decarbonization solutions, with stakeholders increasingly adopting alternative marine fuels and propulsion systems in response to evolving environmental pressures.

However, the exploration of these solutions reveals both advantages and challenges in their widespread adoption. During the 109th session of the Maritime Safety Committee (MSC) held at the IMO Headquarters in London from December 2 to 6, 2024, a key focus was the development of safety regulations to support the use of innovative technologies and alternative fuels in shipping.

Ongoing discussions have led to important amendments and updates concerning the safety of these alternative fuels. Ensuring regulatory frameworks, proper familiarization, and training is now a priority to facilitate a safe and effective transition toward sustainability within the maritime sector.