Rising Demand for Alternative Fuel Vessels: Methanol Leads with 33 New Orders in May 2024

The world's first large methanol powered containership is launched at Hyundai Heavy Industries. Photo courtesy Maersk
The demand for alternative fuel vessels is surging, with 33 new orders in May 2024. Methanol-powered ships lead with 23 orders, container segment prevailing. LNG-fueled vessels trail with 8 orders while 2 ammonia-fueled ship orders signal a rise in interest. Jason Stefanatos noted a significant 55% increase in new orders for alternative fuel vessels compared to 2023.
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The demand for alternative fuel vessels is on the rise, with 33 new orders being placed in May 2024. Methanol-powered vessels are leading the way, accounting for 23 of the total orders, particularly in the container segment. LNG-fuelled vessels are lagging behind, with only eight new orders, while ammonia-fuelled vessels are showing promise with two new orders.

Overall, there has been steady growth in orders for alternative fuel vessels in 2024, with a total of 127 new orders representing a significant 55% increase compared to the same period in 2023. Methanol remains the top choice for alternative fuel vessels, with 70 new orders in 2024, showing a clear increase in market interest. Additionally, there has been growing interest in ammonia-powered vessels, with a total of 11 orders this year compared to just two in 2023.

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, notes the strong momentum in the new order market towards alternative fuel vessels. The increasing number of orders for methanol and ammonia-powered vessels indicates a trend towards cleaner and more sustainable shipping practices globally.

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