The shipping sector is increasingly embracing alternative fuels, with a notable uptick in orders for cleaner ships at the start of 2024. DNV’s Alternative Fuels Insight (AFI) platform reported five new orders in March, including two for methanol and ammonia-fueled vessels each, and one for an LNG-fueled ship.
Despite a quieter month in March, the overall trend is positive, with a 50% surge in orders for alternative-fueled vessels in the first quarter of 2024 compared to the same period in 2023. Jason Stefanatos, DNV’s Global Decarbonization Director, emphasized the significant growth in the alternative-fueled fleet, particularly highlighting the expansion of the LNG fleet, which has doubled since 2021.
Methanol has emerged as the preferred alternative fuel for new vessels, surpassing LNG last year, signifying a milestone in the shipping industry’s efforts towards decarbonization. Additionally, the ammonia fleet has seen an increase in orders, with five new orders in 2024, including two in March, compared to 11 orders in the entirety of 2023.
DNV’s data indicates a growing trend in investments in ammonia-powered ships, with market conditions suggesting further growth in the coming months and years. In 2023, a total of 298 ships with alternative fuel propulsion were ordered out of 1,281 total orders, marking an 8% increase compared to the previous year.
