According to the latest data from DNV’s Alternative Fuels Insights (AFI) platform, a total of 515 alternative-fueled ships (excluding LNG carriers) were ordered in 2024, representing a 38% year-on-year increase compared to 2023.
The growth in alternative-fueled vessel orders has been heavily driven by the container and car carrier newbuild boom over the last three years. 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. The preferred fuel choice for this segment was LNG (67%). In total the container and car carrier segments made up 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 Maritime at DNV
LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.
While methanol drove newbuilding orders for alternative-fueled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130).
Ammonia saw promising momentum in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fueled vessels orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia’s emergence in the alternative fuel market.
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. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.
… commented Knut Ørbeck-Nilssen
Deliveries and bunkering
The number of LNG-fueled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.
While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook.
Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering – can create demand signals to stimulate long-term fuel production. 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.
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.
… highlighted Jason Stefanatos, Global Decarbonization Director at DNV, adding that the shifting trends in LNG and methanol orders this year might be attributed to the slow development of green methanol production. He noted that, in the long term, green methanol has the potential to become part of the energy mix alongside ammonia.
Additionally, he pointed out that LNG provides a crucial bridging fuel option, benefiting from existing infrastructure and short-term emissions reductions. He further mentioned that LNG could also serve as a long-term solution, provided that Renewable Natural Gas (RNG) becomes available and is offered at a competitive price.
