Maritime Momentum in Alternative-Fueled Vessel Orders – DNV

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Alternative Fueled Vessels update by DNV

Recent data from DNV’s Alternative Fuels Insight (AFI) platform reveals a notable uptick in the maritime industry’s commitment to decarbonization, marked by a substantial increase in orders for alternative-fueled vessels. In 2023, a total of 298 ships equipped with alternative fuel propulsion were ordered, representing an 8% year-on-year growth. The surge in interest also saw methanol emerging as a mainstream choice, boasting 138 orders, rivalling LNG with 130 orders. Additionally, ammonia gained prominence with 11 orders for vessels powered by this eco-friendly fuel.

The maritime sector, facing intensified pressure to curtail greenhouse gas emissions, particularly following stricter targets set by the International Maritime Organization (IMO) in July 2023, is actively exploring various decarbonization avenues. DNV’s AFI platform recorded 298 orders for vessels capable of running on alternative fuels in 2023, contributing to a total of 1281 registered orders, reflecting the industry’s commitment to embracing sustainable technologies for both newbuilds and retrofits.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, emphasized the significance of these orders, stating, “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 methanol emerged as the preferred alternative fuel with 138 orders, container ships dominated this segment with 106 orders, followed by bulk carriers (13) and car carriers (10). LNG secured the second spot with 130 vessels ordered in 2023, marking a slight decline from 222 orders in 2022. Notably, LNG surpassed the 1000-vessel milestone (excluding LNG carriers) in 2023, highlighting its continued significance in the maritime energy transition.

Martin Wold, Principal Consultant in DNV’s Maritime Advisory business, commented on the trend, stating, “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.”

As the maritime industry witnesses a surge in orders for vessels powered by alternative fuels, the focus on reducing emissions is driving technological advancements and shaping the industry’s journey towards a sustainable future.

Source DNV