Alternative fuel newbuild ordering binge in 2024 pushes global fleet past 2,000 vessels

LNG fuel of choice in 2024

Over the last three years, the container shipping and car carrier sectors have been frontrunners in ordering alternative fuel-capable newbuilds, and their fuel of choice has emerged as LNG, at least for the moment. In total, the container and car carrier segments made up 62% of all alternative fuel orders in 2024.

LNG experienced a renaissance in 2024, with more than double the orders placed in 2023 (130 newbuilds). Overall, 264 LNG-fuelled newbuilds were ordered (excluding LNG carriers) in 2024, of which 142 were container ships.

Methanol, an early leader in ordering in 2024, accounted for 32% of the orderbook of alternative fuels, with contracts signed for 166 vessels. Most of these methanol orders (85) were in the container segment.

A total of 27 orders were placed for ammonia-fuelled vessels, including the first non-gas carriers.

A record 169 LNG-fuelled ships were delivered in 2024, growing the in-service fleet to 641 LNG-powered ships. According to DNV’s AFI orderbook, this number is expected to double by the end of the decade.

DNV points out that while the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years.

“Market conditions, infrastructure development, fuel production updates and cargo owners’ needs are all shaping the demand for different fuels, both in the short and long term,” said DNV global decarbonization director, Jason Stefanatos. “The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia,” he said.

But Mr Stefanatos also noted, “LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming renewable natural gas will be available and provided at a competitive price."

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