DNV – The maritime industry witnessed a transformative year in 2024, with a record-breaking 515 alternative-fuelled vessels ordered, representing a 38% increase compared to 2023. This surge, as reported by DNV’s Alternative Fuels Insights (AFI) platform, underscores the industry’s steadfast commitment to decarbonization and innovation in vessel propulsion.
Driving Forces Behind the Growth
The remarkable growth in orders was largely driven by the container and car carrier segments. These two categories accounted for 62% of all alternative-fuel vessel orders, driven by cargo owners’ responses to consumer demand for sustainable practices and liner companies’ fleet renewal strategies. Among these, 69% of all container ship orders in 2024 were for vessels capable of using alternative fuels, with LNG dominating the segment at 67%.
Knut Ørbeck-Nilssen, CEO Maritime at DNV, highlighted the industry’s progress while stressing the importance of further collaboration:
“As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward. The technological transition is underway, but supply of alternative fuel is still low. As an industry, we need to work with fuel suppliers and other stakeholders to ensure shipping has access to its share of alternative fuels in the future. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”
LNG and Methanol Lead the Way
Shipowners displayed a keen interest in LNG and methanol as their fuels of choice in 2024. LNG orders soared to 264, more than doubling the 130 orders placed in 2023. Methanol also gained traction, with 166 vessels ordered, accounting for 32% of the alternative-fuel orderbook. The container segment dominated methanol orders, with 85 vessels, reflecting the industry’s diversified approach to reducing greenhouse gas emissions.
Ammonia continued to gain momentum, with 27 vessels ordered, including the first 10 non-gas carrier ammonia-fuelled vessels, a promising sign for its future role in maritime fuel.
Record Deliveries and Bunkering Developments
2024 marked a record year for LNG-powered vessel deliveries, with 169 new ships entering service. The total number of LNG-fuelled vessels in operation reached 641 by the end of the year, and this number is projected to double by 2030.
While LNG bunkering infrastructure continues to expand, significant gaps remain in other alternative fuels. The fleet of LNG bunker vessels grew from 52 to 64 over the year, signaling steady progress. With the European Union’s “Fit for 55” regulatory package mandating LNG bunkering infrastructure across a large network of ports, availability is expected to grow significantly in the coming years.
Jason Stefanatos, Global Decarbonization Director at DNV, emphasized the importance of adapting to market conditions and fuel infrastructure:
“Market conditions, infrastructure development, fuel production updates, and cargo owners’ needs are all shaping the demand for different fuels, both in the short and long term. The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia. In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price.”
Table: 2024 Alternative-Fuelled Vessel Orders: Fuel Breakdown and Key Insights
| Fuel Type | Number of Orders | Percentage of Total Orders | Primary Segment | Year-on-Year Change |
|---|
| LNG | 264 | 51% | Container & Car Carriers | Over 100% increase from 2023 (130 orders) |
| Methanol | 166 | 32% | Container Ships | New surge in methanol adoption |
| Ammonia | 27 | 5% | Bulk Carriers & New Segments | 338% increase from 2023 (8 orders) |
| Other | 58 | 11% | – | – |
| Total Orders | 515 | 100% | – | 38% increase from 2023 |
Looking Ahead
The extraordinary achievements of 2024 set the stage for further innovation and investment in maritime decarbonization. However, challenges such as fuel supply, safety standards, and infrastructure development remain key priorities. The industry’s ongoing collaboration with fuel suppliers, regulatory bodies, and technology providers will be critical in sustaining this momentum toward a greener future.
*Note: The data provided reflects the most recent updates from DNV’s Alternative Fuels Insights (AFI) platform.
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Source DNV