LNG-Fueled Vessels Drive Shipping Industry’s Path to Net-Zero Emissions

In recent months, there has been a significant increase in investment in LNG-fueled vessels in response to the International Maritime Organization’s targets for reducing emissions by 2030 and 2050. Liquefied natural gas, along with its bio and synthetic derivatives, has emerged as a viable and accessible alternative to traditional marine fuels. Its ability to reduce greenhouse gas emissions and compatibility with existing infrastructure have made it a popular choice for decarbonizing the shipping industry.

The global orderbook currently shows 609 LNG-fueled vessels in operation worldwide, with an additional 632 on order. The container segment, particularly fuel-intensive, is leading the adoption of LNG as a marine fuel. Major players like MSC, CMA CGM, AP Moller Maersk, and Hapag-Lloyd have made significant investments in LNG dual-fuel vessels. The growth in LNG investment is being driven by the fuel’s immediate impact on emissions and its future potential to meet stringent regulations and achieve net-zero targets.

The availability of LNG bunkering in approximately 185 ports worldwide, with plans to increase to 235 by 2025, has further accelerated the adoption of LNG as a marine fuel. Additionally, the development of liquefied bio-methane and e-methane as renewable alternatives to traditional marine fuels offers a pathway to achieving net-zero emissions by 2050. The commercial viability, compatibility with existing infrastructure, and growing availability of LNG position it as a leading future fuel for the shipping industry, with continued growth expected in the coming years.

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