Shipping’s rapid transition to alternative fuels took a significant twist last year with methanol-powered engine orders becoming the most popular alternative choice.
The latest stats from DNV’s Alternative Fuels Insight platform have shown that orders for methanol-powered ships saw a sharp increase in orders in 2023 with 138 which puts it at the top spot, beating LNG for the first time. The chilled fuel took second place with 130 orders.
The rise of methanol in 2023 was more than significant as the 138 ordered vessels – excluding methanol carriers – was a steep increase compared to the 35 ordered to run on this fuel the year before. The dominating segment for this fuel was containerships with 106 orders, followed by bulk carriers with 13, and car carriers with 10 orders.
LNG, the second alternative fuel of choice in 2023, had a very different year which resulted in a nosedive with just 130 vessels ordered, down from 222 in 2022.
Last year also saw LNG finally break the 1,000-vessel barrier, excluding LNG carriers. In 2023, the containers segment was the most active for the chilled fuel with 48 orders, car carriers followed with 40, and tankers were in third place with 30. When looking at newbuilds alone, LNG would be in the lead as a considerable proportion of methanol orders were for retrofits.
The past year also saw the first 11 orders for ammonia-fuelled vessels, but hydrogen was a less popular choice with just five orders compared to the previous year’s 18. Also, a total of 298 ships with alternative fuel propulsion were ordered in 2023 – which is an 8% increase year on year.
“Investments in alternative-fuelled 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,” said Martin Wold, principal consultant in DNV’s Maritime Advisory business.
Last year was a banner year for shipping adopting methanol, with the orderbook for dual-fuelled methanol-powered ships now hitting 200 ships, according to data from Clarksons’ latest Green Technology Tracker, accounting for 8.3% of the global orderbook in gt terms.
“2023 was a hugely significant year in the shipping industries decarbonisation pathway, with new regulation entering into force and a net zero commitment agreed at IMO. And while we remain only at the start of a vital and unprecedented fleet renewal investment program, a start has been made with 49% of current orderbook tonnage now alternative fuelled,” commented Steve Gordon, global head of Clarksons Research.
