3 January 2024 (Lloyd’s List) - ALTERNATIVE fuel vessels including LNG and methanol accounted for 49% of the total orderbook in 2023 in terms of gross tonnage, according to Clarkson Research Services.

LNG was the most popular alternative fuel choice for vessels above 100 gt, accounting for 37.5% of all such ship orders last year.

Methanol dual-fuel vessel orders made up 8.3% of the orderbook in 2023 in terms of gt, while battery-fitted and LPG vessel orders accounted for 1.8% and 1.7% respectively.

"2023 was a hugely significant year in the shipping industry’s decarbonisation pathway, with new regulation entering into force and a net zero commitment agreed at IMO," said Steve Gordon, global head of Clarkson Research, the maritime services arm of London-listed shipbroker Clarksons.

"And while we remain only at the beginning of a vital and unprecedented fleet renewal investment programme, a start has been made with 49% of current orderbook tonnage now alternative fuelled.

'There are other important developments, with 'eco' vessels now constituting 32% of global tonnage on the water and the use of innovative energy-saving technologies continuing to expand." 

Rudder bulbs were among the most popular energy saving technologies in 2023, with more than 3,286 vessels fitting the technology, according to Clarkson Research.

The number of vessels that will use wind-assisted propulsion neared 100 in 2023, Clarkson Research added.

Current and upcoming regulations, such as the EU Emissions Trading System and FuelEU Maritime, could increase demand for alternative-fuelled vessels along with global regulations like the Carbon Intensity Indicator.

FuelEU Maritime will require vessels that operate in EU ports to cut CO2 emissions by 2% in 2025, from a 2020 baseline.

Shipping companies could also start ordering ammonia dual-fuel vessels in the coming years, as designers aim to launch ammonia engines in 2025.