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Orders for Ships Running on Alternative Fuels Are Increasing


Orders for Ships Running on Alternative Fuels Are Increasing

08 January 2025

Orders for ships capable of running on alternative fuels doubled in 2024. At the same time, the active fleet of alternative fuel-powered ships grew by 18%. This is reported by Lloyd’s Register.

According to Lloyd’s Register, 600 ships designed to operate on alternative fuels were ordered globally in 2024. This led to the total order book for such ships increasing by over 50%, reaching 1,737 vessels.

Meanwhile, the existing fleet of alternative fuel-powered ships grew by 18%, reaching 1,860 vessels. Including current orders, the fleet will total 3,597 ships—approximately 4.8% of all ships in operation and on order. However, this is still not quite enough to meet the IMO’s target of having 5-10% of all maritime fuels be emission-free or nearly emission-free by 2030.

So, what will 4.8% of the global fleet run on? Primarily LNG. During the year, liquefied natural gas strengthened its position as the most widely used alternative fuel in shipping. Over 350 ships (including LNG carriers) were ordered. According to Lloyd’s Register, the industry’s efforts to mitigate the impact of methane emissions from LNG engines also progressed during the year.

What “new” types of alternative fuels are being pursued? The most orders, 119 in total, were placed for methanol-powered ships. Lloyd’s Register, which classified the first methanol conversion in 2015—the ro-pax vessel Stena Germanica—also noted that it has been appointed to support and classify Stena Line’s next two ferry conversions.

Ammonia is also growing in popularity. In 2024, 22 ships capable of running on ammonia were ordered, more than doubling the number from the previous year. Further growth is expected as the industry gains experience with this carbon-free fuel, especially after the first marine engines are delivered later this year.

Hydrogen also solidified its appeal in certain ship segments during 2024, with 12 additional hydrogen-powered ships ordered. Lloyd’s Register highlighted that it will classify two hydrogen-powered passenger ferries ordered by Norway’s Torghatten Nord and has granted approval in principle for several new hydrogen vessels, including ferries and tugboats.

Liquefied petroleum gas (LPG) contributed a few more orders as well. Currently, LPG carriers are the only users of this fuel, but according to Lloyd’s Register, there is potential for other segments to adopt it.

What about Sweden? According to an article in Sjöfartstidningen, shipping companies with Swedish ownership interests ordered 37 new builds in 2024. This brings the Swedish order book to a total of 72 ships. All these vessels are designed to run on some type of alternative fuel and are also equipped with battery technology.

Six of these are built for full electric propulsion, mainly for operations in archipelago areas. Thirty-one are being built for methanol operation, either as the primary fuel or as a viable alternative. Seventeen ships are being built for LNG operation with dual-fuel systems, while 14 of the vessels ordered by Wallenius Wilhelmsen are also prepared for ammonia propulsion.


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