Orders for vessels capable of using alternative fuels rose more than 50 percent in 2024, according to classification society Lloyd’s Register.
“Shipowners continued to invest for a future of lower emissions in 2024, with 600 vessels capable of using alternative fuels ordered (to December 13),” LR said on Thursday.
The new orders grew the total orderbook by more than 50 percent, to 1,737 vessels, it said.
Based on data from IHS, Clarksons, and LR, alternative fuels are ammonia, ethane, hydrogen, LNG, LPG, nuclear, and methanol.
The in-service alternative-fueled fleet also grew “strongly”, and was up 18 percent to 1,860 vessels, LR said.
Combined with current orders, the fleet will stand at 3,597 – around 4.8 percent of all vessels in service and on order.
“But with the IMO’s 2030 target on zero and near-zero emission energy use crossing the five-year horizon, orders will need to accelerate further to meet the required 5-10 percent of shipping’s energy consumption,” LR said.
LNG strengthened its position as shipping’s most widely adopted alternative fuel
LR said that there were 119 orders for methanol-fueled vessels, adding more than a third to the existing orderbook.
The classification society said that ammonia-fueled vessel orders more than doubled compared to the previous year, to 22 vessels.
In 2025, the first ammonia-fueled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the fuel, LR said.
LR noted that hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024.
While vessel orders related to new fuels progressed in 2024, liquefied natural gas (LNG) also strengthened its position as shipping’s most widely adopted alternative fuel, the classification society said.
More than 350 vessels (including LNG carriers) were ordered, according to LR.
Another established alternative fuel, liquefied petroleum gas (LPG), also drew further orders.
Currently, LPG carrier vessels are the only users of the fuel, but there remains potential for other users to take up the fuel, LR said.
Maritime’s decarbonization drive
Looking further ahead, the prospect of nuclear propulsion for commercial vessels gained momentum in 2024, driven by increasing shipowner interest in the advance of small modular reactor technology, LR said.
LR also said that 2024 was also notable for growing maturity in the carbon transport and sequestration market, which will be essential both for decarbonizing hard-to-abate industrial sectors and providing feedstock for carbon-based e-fuels.
These efforts, alongside increasing investment from shipowners, set the scene for a “crucial” year ahead for the maritime’s decarbonization drive, it said.
The first four months alone, with the introduction of FuelEU Maritime in January and the anticipated finalization of IMO mid-term measures in April, will make 2025 a “defining” year for the industry’s voyage towards net-zero emissions, LR said.