by Lloyd's List
10 January 2025 (Lloyd's List) - SHIPOWNERS are still opting for LNG as their preferred alternative fuel, with a record 169 vessels delivered in 2024, according to classification society DNV’s Alternative Fuel Insights annual update.
A further 264 LNG-fuelled vessels were ordered in 2024, more than double the 130 ordered in 2023.
That means there were 641 LNG-fuelled vessels in operation at the end of 2024, and DNV said it expected this number to double by the end of the decade, based on the AFI orderbook.
Containerships are by far the most represented in the LNG orderbook, with 142 in operation and a further 310 on order (excluding LNG carriers).
But 2024 was a good year for alternative fuels as a whole, with 515 vessels ordered (a 38% increase on 2023’s figure).
Aside from LNG, there were notable increases in the number of orders for ammonia-fuelled vessels, with 27 ordered in 2024 (a 238% increase on 2023, albeit from a low base). The first non-gas carrier ammonia-fuelled vessels were placed in 2024 (10), including five bulk carriers.
Methanol drove alternative fuel orders at the start of the year (finishing the year on 166 orders, a 4% increase) DNV said, but it was clear that by the conclusion of 2024 LNG was the top choice for shipowners.
A large reason for LNG’s success is the availability of the fuel, which cannot be said for the other options on the table.
DNV global decarbonisation director Jason Stefanatos said 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. In parallel, 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,” he said.
LNG bunkering vessels increased from 52 to 64 over the course of 2024. But the gap between LNG demand and supply is still expected to widen as orders begin to be delivered over the next few years.
DNV said it expects the EU Fit for 55 regulatory package to increase the availability of LNG in ports.
The thorny issue of alternative fuel supply was reiterated by DNV chief executive Knut Ørbeck-Nilssen.
“The technological transition is underway, but supply of alternative fuel is still low. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future.
“It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”
