Rise in orders for ship using alternative fuel

Shipbuilding saw an 8 per cent increase in orders for alternative fuel-powered vessels, which have reached a total of 298 ships, in response to the International Maritime Organization’s (IMO) strict emission standards introduced in July 2023.

According to the latest figures from DNV’s Alternative Fuels Insight (AFI) platform, the surge illustrated the maritime industry’s commitment to decarbonisation.

Methanol was the leading alternative fuel of choice. There was a remarkable increase with 138 methanol-fuelled ships ordered in 2023, nearly increasing fourfold the 35 ordered in 2022. Container ships took the lead in adopting methanol propulsion (106), followed by bulk carriers (13) and car carriers (10). Liquefied natural gas (LNG) secured the second spot with 130 vessels ordered, despite a year-on-year decrease from 222 in 2022. DNV highlighted that, when considering new builds exclusively, LNG retained its lead, as a significant portion of methanol orders were for retrofits.

The adoption of ammonia as a marine fuel was also seen, with 11 contracts signed in 2023 and more in the pipeline. However, hydrogen, despite its potential, experienced a decline, with only five orders in 2023 compared to 18 in the previous year.

Martin Wald, President Consultant at DNV’s Maritime Consultancy, said that “investments in alternative-fuelled vessels have been heavily driven by the container and car carrier newbuild boom over the last three years– and now it remains to be seen if this trend continues into 2024.”