Alternative-fuel propulsion orders increased 8% in 2023, Det Norske Veritas finds
The Det Norske Veritas (DNV) Alternative Fuels Insight (AFI) platform has found that a total of 298 ships with alternative-fuel propulsion were ordered in 2023 – an 8% increase year on year.
The year also reportedly saw methanol go mainstream, with a sharp increase in orders (138), putting it neck and neck with LNG (130). Additionally, the company found that 2023 marked a breakout year for ammonia, with 11 orders for vessels run on this fuel, and more in the pipeline.
Through its AFI platform, DNV registers the industry’s efforts related to new-build vessels and retrofitting, with 298 orders for vessels able to run on alternative fuels logged in 2023 and a total of 1,281 ships overall.
Knut Ørbeck-Nilssen, CEO of DNV’s maritime division, said, “As we navigate toward a greener maritime future, the growing demand for alternative-fuel vessels speaks volumes. These orders send pivotal signals to fuel providers and other important partners on shipping’s decarbonization journey. While it is clear that the maritime fuel technology transition is already underway, we now need to ensure the fuels powering these engines become available. It is, however, crucial to emphasize that focusing solely on fuels may divert our focus from achieving a significant impact in this decade. What is required are concrete measures that actively lower emissions. Energy efficiency initiatives can yield decarbonization outcomes both now and leading up to 2030.”
By a small margin, methanol proved the most popular alternative fuel choice in 2023, with 138 ships ordered (excluding methanol carriers), a steep increase compared with the 35 ordered to run on this fuel the year before. The dominating segment for this fuel was container ships (106), followed by bulk carriers (13) and car carriers (10).
The second alternative fuel of choice in 2023 was LNG with 130 vessels ordered, down from 222 in 2022. However, when looking at new-builds alone, LNG would be in the lead because a considerable proportion of methanol orders were for retrofits. The year also saw LNG finally break the 1,000-vessel barrier (excluding LNG carriers), showing the fuel’s continued importance in the maritime energy transition. In 2023, the containers segment was the most active (48) for LNG, followed by car carriers (40) and tankers (30). The year also saw the first orders for vessels due to run on ammonia (11) come through, whereas, with just five orders, hydrogen was a less popular choice compared with the previous year (18).
Martin Wold, principal consultant in DNV’s maritime advisory business, commented, “Investments in alternative-fuel vessels have been heavily driven by the container and car carrier new-build boom over the last three years. It remains to be seen if this trend continues into 2024.”
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