Image: Maersk
Methanol has outpaced liquefied natural gas (LNG) as the preferred alternative fuel for newbuild vessels in 2023. This significant milestone in the shipping industry’s journey toward decarbonization is unveiled in the latest data from DNV’s Alternative Fuels Insight (AFI) platform.
Rising Demand for Cleaner Fuels
The AFI data reveals that out of 1,281 total orders for newbuild vessels in 2023, a total of 298 ships opted for alternative fuel propulsion. This marks an 8% increase compared to the previous year. Methanol stole the spotlight with 138 orders, narrowly surpassing LNG, which secured 130 orders. The shift signifies a growing demand for cleaner fuel alternatives, aligning with the International Maritime Organization’s (IMO) stringent emission reduction targets set in July 2023.
Knut Ørbeck-Nilssen, CEO Maritime at DNV, emphasized, “As we navigate towards a greener maritime future, the growing demand for alternative-fueled vessels speaks volumes.” He pointed out that these orders send crucial signals to fuel providers and other partners, emphasizing the urgency of ensuring the availability of these groundbreaking fuels.
Methanol’s Surge and Ammonia’s Ascent
The 138 methanol-fueled vessels ordered in 2023, excluding methanol carriers, marked a substantial increase from the 35 orders in 2022. Containerships took the lead with 106 orders, followed by bulk carriers (13) and car carriers (10). This shift, driven by the need for greener solutions, reflects a crucial step towards a sustainable maritime industry.
Ammonia also made strides in 2023, securing 11 vessel orders, with expectations for further growth in the future. This diversification in fuel options underscores the industry’s commitment to exploring various avenues for reducing its carbon footprint.
LNG’s Enduring Significance
Despite a decrease in orders, LNG remains a popular choice with 130 vessels ordered in 2023, primarily driven by retrofits. The maritime energy transition witnessed LNG surpassing the milestone of 1,000 vessels in 2023, emphasizing its continued importance. Containers, car carriers, and tankers took the lead in LNG orders.
2023 also marked the first orders for vessels powered by ammonia (11), while hydrogen saw a decline in popularity with only five orders compared to the previous year’s 18.
Martin Wold, Principal Consultant in DNV’s Maritime Advisory business, acknowledged the role of the container and car carrier newbuild boom in driving investments in alternative-fueled vessels. The industry now eagerly anticipates whether this trend will persist into 2024.
Souece:Mike Schuler,GCaptain
