Lloyd’s Register’s (LR) latest Engine Retrofit Report, released in 2025, indicates that the maritime industry has progressed in retrofitting ship engines for alternative fuels, though a lack of supply-side incentives poses delays.
Since the 2023 report, the industry completed its first methanol fuel conversions since 2015 and expanded shipyard retrofit capabilities, with 16 yards—primarily in China and the Middle East—now offering an annual capacity of 465 vessel conversions.
However, this falls short of the projected peak need of over 1,000 conversions per year. In 2024, LNG retrofits surged, with 305 LNG-fueled ships ordered, representing 14% of newbuilding orders, outpacing methanol and ammonia options, driven by regulatory pressures like the EU’s FuelEU Maritime and Emissions Trading System (ETS).
The report notes that while LNG aids short-term compliance, methane emissions and limited bio- and e-LNG availability challenge long-term reductions. Supply chain issues persist, with conversion lead times potentially exceeding 18 months without better coordination among engine manufacturers, fuel system suppliers, and shipyards.
Recent MARPOL Annex VI NOx Technical Code amendments aim to simplify certification for retrofitted engines.
LR’s Claudene Sharp-Patel, Global Technical Director, stated, “LR’s new Engine Retrofit Report demonstrates that while technology and regulations are evolving, decisive action is needed to secure the future fuel landscape. The technology and shipyard capacity to retrofit vessels is improving, but without decisive action to scale up alternative fuel supply chains, shipowners will face increasing compliance costs and operational uncertainty. We need greater regulatory clarity and investment to bridge the gap between ambition and action.”
Lloyd’s Register (LR) is a UK-based technical and business services organization founded in 1760, it provides maritime classification, compliance, and consultancy services, employing over 5,000 people globally.