Business Sectors
Business Sectors
Events
Contents
Register to read more articles.
DEME: we need to standardise future fuels for newbuilds
According to one of the world’s largest contractors, there needs to be more certainty on future projects, vessel demand, pricing, fuel availability and the talent pool to crew ships
Offshore contractors are operating in a strong market, supporting hydrocarbons and renewables projects, but there are challenges in planning for the future in terms of future fuels and newbuild pricing.
DEME Offshore managing director Hugo Bouvy wants greater standardisation and guidance on which fuels to build newbuilds for. DSME operates around 100 vessels, of which five are able to operate on LNG and another three are methanol-ready.
However, there is varying guidance on which fuels are the most environmentally sustainable. "We cannot always get LNG fuel, so our vessels go back to diesel," he told Riviera. "Vessels cannot operate on LNG in Taiwan or the US East Coast, but there is good availability in Rotterdam."
He pointed out how the shipping industry does not have clarity in alternative fuels. For example, container liners transitioned first towards LNG, then methanol and now back to LNG.
"We are committed to reducing emissions, but it is important to make the right choice for newbuilds," said Mr Bouvy. "We started operating vessels on LNG, then there was negativity about LNG and we went to methanol."
Its alternative-fuel-ready vessels have dual-fuel engines so they can operate on diesel when these fuels are not available.
He wants guidance and standardisation on these alternative fuels. "We need to know how we can decarbonise our vessels."
Mr Bouvy also wants more collaboration within the offshore sector for longer term contracts, and partnerships to enable owners to order newbuilds ready to run on alternative fuels.
"The biggest challenges are the business cases are not there, and newbuild prices are too high."
Vessels ordered in 2024 would be up to 50% more expensive than those delivered five years ago. And these vessels would compete against each other for the same projects and contracts.
"The solution is getting fair prices, long-term contracts and guarantees. We need partnerships," said Mr Bouvy. This involves offshore energy companies, project developers, contractors and vessel owners.
He also wants more certainty on regulations and open markets for vessels and personnel. "If there is certainty, we can plan our fleets and operations."
DEME needs to recruit and train seafarers for its vessels and Mr Bouvy wants to attract the next generation to the business.
"We need to attract more people to the industry. It is a life, a career where we are busy 24/7, 365 days a year. It is better to sell this as an adventure," said Mr Bouvy at the International Marine Contractors Association’s global summit in Utrecht, the Netherlands on 3 December.
Riviera’s Offshore Support Journal Conference, Middle East will be held in Dubai, UAE, 11 December 2024. Click here for more information on this industry-leading event.
Related to this Story
Events
Maritime Regulations Webinar Week
16 Dec 2025
GMT - ONLINE
Floating energy: successfully unlocking stranded gas using FLNGs and FSRUs
24 Feb 2026GMT - ONLINE
© 2026 Riviera Maritime Media Ltd.
