The latest stats from DNV’s Alternative Fuels Insight (AFI) platform found that 298 ships with alternative fuel propulsion were ordered in 2023—an 8% increase yearly. The year also saw methanol go mainstream, with a sharp increase in orders (138), putting it neck and neck with liquefied natural gas (LNG) at 130. Additionally, 2023 marked a breakout year for ammonia, with 11 orders for vessels running on this fuel, and more in the pipeline.
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Faced with increasing pressure to reduce greenhouse gas emissions, including stricter targets set by the International Maritime Organization (IMO) in July 2023, the maritime sector is considering various decarbonization options. Through its AFI platform, DNV registers the industry’s efforts related to newbuild vessels and retrofitting, with 298 orders for vessels able to run on alternative fuels logged in 2023, and 1,281 ships overall.
“As we navigate towards a greener maritime future, the growing demand for alternative-fueled vessels speaks volumes. These orders send pivotal signals to fuel providers and other important partners on shipping’s decarbonization journey. While it is clear that the maritime fuel technology transition is already underway, we now need to ensure the fuels powering these engines become available,” said Knut Ørbeck-Nilssen, CEO of Maritime at DNV. “It is, however, crucial to emphasize that focusing solely on fuels may divert our focus from achieving a significant impact in this decade. What is required are concrete measures that actively lower emissions. Energy efficiency initiatives can yield decarbonization outcomes now and up to 2030.”
According to DNV, methanol proved the most popular alternative fuel choice in 2023 by a small margin, with 138 ships ordered (excluding methanol carriers), a steep increase compared to the 35 ordered to run on this fuel the year before. The dominating segment for this fuel was container ships (106), followed by bulk carriers (13) and car carriers (10).
Per DNV, the second alternative fuel of choice in 2023 was LNG, with 130 vessels ordered, down from 222 in 2022. However, LNG would be in the lead when looking at new builds alone, as many methanol orders were for retrofits. Last year also saw LNG finally break the 1000-vessel barrier (excluding LNG carriers), showing the fuel’s continued importance in the maritime energy transition. In 2023, the containers segment was the most active (48) for LNG, followed by car carriers (40) and tankers (30). The year also saw the first orders for vessels due to run on ammonia (11) come through, whereas, with just five orders, hydrogen was a less popular choice compared to the previous year (18).
“Investments in alternative-fueled vessels have been heavily driven by the container and car carrier newbuild boom over the last three years. It remains to be seen if this trend continues into 2024,” said Martin World, principal consultant in DNV’s maritime advisory business.
DNV is also an independent and expert in assurance and risk management. The company aims to safeguard life, property, and the environment. It empowers its customers and stakeholders with facts and reliable insights to make critical decisions confidently. Further, as a trusted voice for many of the world’s most successful organizations, DNV utilizes its knowledge to advance safety and performance, set industry benchmarks, and inspire and invent solutions to tackle global transformation. (Story and photo by DNV)