DNV: Orders for alternative-fueled vessels grow, methanol in spotlight

According to the latest stats from DNV’s Alternative Fuels Insight (AFI) platform, a total of 298 ships with alternative fuel propulsion were ordered in 2023, with methanol going mainstream.

Courtesy of DNV

The classification society revealed that by a small margin, methanol proved the most popular alternative fuel choice in 2023 with 138 ships ordered (excluding methanol carriers), a steep increase compared to the 35 ordered to run on this fuel the year before. Container ships (106) dominated this segment, followed by bulk carriers (13) and car carriers (10).

The second alternative fuel of choice in 2023 was LNG with 130 vessels ordered, down from 222 in 2022, DNV said, noting that when looking at newbuilds alone, LNG would be in the lead as a considerable proportion of methanol orders were for retrofits. Additionally, 2023 also saw LNG break the 1000 vessel barrier (excluding LNG carriers), showing the fuel’s importance in the maritime energy transition, DNV emphasized. The containers segment was the most active (48) for LNG, followed by car carriers (40) and tankers (30).

According to DNV’s AFI stats, 2023 also saw the first orders for vessels due to run on ammonia (11) come through, whereas with just five orders, hydrogen was a less popular choice compared to the previous year (18).

Knut Ørbeck-Nilssen, CEO of Maritime at DNV, commented: “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 it is clear that the maritime fuel technology transition is already underway, we now need to ensure the fuels powering these engines become available.”

“It is however crucial to emphasize that focusing solely on fuels may divert our focus from achieving a significant impact in this decade. What is required are concrete measures that actively lower emissions. Energy efficiency initiatives can yield decarbonization outcomes both now and leading up to 2030.”

Martin Wold, Principal Consultant in DNV’s Maritime Advisory business, stated: “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.”

To remind, DNV enhanced its AFI data platform by adding new low-carbon fuels, including methanol, ammonia, hydrogen and LPG, at the beginning of 2023.

At the time, Kristian Hammer, Senior Consultant in DNV’s Maritime Advisory business, said that the upgrade of the AFI platform is intended to promote cross-industry collaboration and provide greater visibility on alternative fuel uptake.

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