The maritime industry witnessed an unprecedented surge in orders for alternative-fueled vessels in 2024, with liquefied natural gas (LNG) leading the charge, according to DNV's Alternative Fuels Insights (AFI) platform.
A total of 515 alternative-fueled ships were ordered, excluding LNG carriers, marking a substantial 38% increase compared to the previous year. This surge underscores the industry's growing commitment to decarbonization. This growth was primarily driven by the container and car carrier newbuild boom, with 69% of all container ship orders in 2024 being for alternative-fueled vessels. Cargo owners, responding to consumer demands for more sustainable practices, and liner companies preparing to replace older tonnage, significantly fueled this trend.
LNG emerged as the preferred fuel choice for this segment, accounting for 67% of orders. "While recent figures are promising, we must keep pushing forward," emphasized Knut Ørbeck-Nilssen, CEO Maritime at DNV. "The technological transition is underway, but the supply of alternative fuel is still low. We need to collaborate with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future."
Shipowners demonstrated a diversified approach to alternative fuels in 2024, with 166 methanol orders placed (32% of the AFI orderbook). This reflects the industry's growing interest in a diverse fuel pool to reduce greenhouse gas emissions. While methanol drove newbuilding orders at the beginning of the year, LNG solidified its position as the industry's preferred alternative fuel by year-end.
The number of LNG vessel orders placed in 2024 more than doubled compared to 2023, reaching 264. Ammonia also showcased promising momentum throughout 2024, with 27 orders placed. Notably, the first non-gas carrier ammonia-fueled vessel orders were placed, primarily in the bulk carrier segment.
The number of LNG-fueled ships in operation doubled between 2021 and 2024, with a record 169 deliveries in 2024. By the end of 2024, 641 LNG-powered ships were in operation. The AFI orderbook projects this number to double by the end of the decade. While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering infrastructure is maturing. The number of LNG bunker vessels in operation increased from 52 to 64 over the last year, with further growth expected in 2025. However, a significant gap between LNG bunkering supply and demand is anticipated over the next five years.
With the EU's Fit for 55 regulatory package mandating LNG bunkering infrastructure in a large network of ports, the availability of LNG in ports is expected to increase. This news report provides a concise overview of the key findings from DNV's report on alternative-fueled vessel orders in 2024.