The last few years have seen the maritime industry become increasingly committed to decarbonisation, finding more sustainable ways of operating in response to consumer demands for more eco-friendly business practices and liner companies starting to replace older tonnage.
As such, interest in alternative fuels has surged, with 69 per cent of all orders for container ships in 2024 focusing on those vessels capable of being powered in a new way, according to classification society DNV’s latest Alternative Fuels Insights analysis.
A significant rise in orders for alternative-fuelled ships was seen last year, with 515 such vessels ordered, representing a 38 per cent increase year-on-year compared to 2023.
The most popular fuel choice was found to be liquid natural gas (LNG), although other options were also at the forefront of shipowners’ minds, including methanol, which drove newbuild orders for vessels at the start of the year.
However, come close of play, LNG emerged as the top alternative fuel choice for the maritime sector, with a total of 264 orders in place (more than double that seen in 2023).
Elsewhere, ammonia was also starting to see an uptick in interest during the first quarter of 2024 and this continued to grow as the year progressed, with 27 orders incoming for ammonia-fuelled ships, compared to the eight orders seen in 2023.
CEO of maritime at DNV Knut Orbeck-Nilssen commented on the findings, saying: “The technological transition is underway, but supply of alternative fuel is still low.
“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.”
Jason Stefanatos, DNV’s global decarbonisation director, made further comments, saying that the demand for different fuels is being shaped by market conditions, fuel production updates, cargo owner requirements and infrastructure developments.
He added that LNG will serve as an essential bridging fuel option, supported by existing infrastructure and reductions in emissions over the short term, while having potential long-term applications if renewable natural gas is available at competitive prices.
What about biofuel?
A recent DNV white paper found that biofuels like hydrotreated vegetable oil and fatty acid methyl ester have significant potential for reducing greenhouse gas emissions and furthering compliance with maritime regulations.
Mr Orbeck-Nilssen said that biofuels are promising for decarbonisation and, as such, it’s promising to see growth in the number of ports offering these as an option in the last few years. However, the long-term future of this market will depend on sustainable biomass availability at affordable levels.
He advised shipowners to explore other energy-efficiency measures and alternative fuels at the same time as using biofuels as and when they’re affordable and available.
