Maritime Industry Sees Surge in Alternative Fuel Vessel Orders in 2024

The maritime industry saw a significant increase in orders for alternative fuel vessels in 2024 according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform. A total of 515 such vessels were ordered, marking a 38% increase compared to 2023. This surge in orders highlights the industry’s growing commitment to decarbonization, with container and car transporters leading the way in adopting alternative propulsion technologies. Container ships capable of running on alternative fuels made up 69% of all orders in 2024, reflecting a response to consumer demand for sustainability and the industry’s efforts to replace older tonnage.

While LNG remained a popular alternative fuel choice in 2024, shipowners also turned to other options like methanol to reduce greenhouse gas emissions. Methanol orders made up 32% of the AFI backlog, with the container sector accounting for a significant portion of these orders. Despite the early momentum of methanol, LNG emerged as the top alternative fuel choice by the end of the year, with a notable increase in LNG ship orders compared to 2023. Additionally, ammonia gained traction as an alternative fuel, with a growing number of orders for ammonia-powered ships in 2024.

The operation of LNG-powered ships doubled between 2021 and 2024, with a record number of deliveries in 2024. The industry has seen a steady increase in the infrastructure for LNG bunkering, with more LNG bunkering vessels coming into operation. However, there is still a significant gap between supply and demand for LNG bunkers, prompting the need for further infrastructure development. As the industry navigates the transition to alternative fuels, collaboration with fuel suppliers and stakeholders will be crucial to ensure the availability and safety of alternative fuels for shipping. This shift towards more sustainable fuel options is driven by evolving market conditions, infrastructure development, and the changing needs of cargo owners.

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