Operation & order book
1750
LNG carriers LNG-fuelled LPG
1500
Ships in operation
Methanol Ammonia Hydrogen
1250
1000
750
500
250
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Figure 2 Development of alternative fuels uptake by number of ships
such as biomethane. While this rate of uptake has not been matched in 2025, with only 232 alternative-fuelled new orders in line with a weaker overall newbuild market, LNG has continued to account for around two- thirds of the uptake, overwhelmingly led by container vessels. Methanol has been the next most popular alternative fuel, with 166 new orders placed in 2024 and 47 in 2025. Ammonia and hydrogen are still emerging – 32 ammonia-fuelled vessels and 11 hydrogen-fuelled vessels have been ordered since the beginning of 2024. Taken together, 1,109 vessels with alternative- fuel capability were in operation by the end of November 2025, with a further 1,188 on order and set to enter operations by the end of the decade. This marks a clear shift in industry commitment and capability, demonstrating that shipping is approaching a fuel transition tipping point and sending a strong demand signal to fuel producers and related industries to speed up their progress. The fuel gap Although the global fleet is developing and showing an increasing capacity to consume alternative, low-GHG fuels, actual consumption of these fuels today is only about 1 Mtoe. This highlights a significant gap between technical readiness and fuel availability, which is now the central challenge for the industry. While investments in dual-fuel alternative- fuel-capable engines have been robust in recent years, production capacity and global
infrastructure for alternative low-GHG versions of methanol, ammonia, hydrogen, and biofuels, has not kept pace. The reasons for this gap are multifaceted but begin with the question of risk. While shipowners betting on alternative-fuel capability will need to spend additional capital on these new ships compared to conventional projects, the vessel in question will not be locked to that specific alternative fuel. Most of these newbuilds have dual-fuel capability, which allows for the continued use of conventional fuel oil or even drop-in biofuels, meaning the downside to this investment is limited. For fuel producers, the situation is more challenging. High up-front capital is needed for investing in production and distribution capacity, but the return on this investment depends entirely on the premise that a yet-to-be realised market potential will actually emerge in shipping. The only risk-mitigating factor is that other offtake sectors may emerge. Thus, the degree of long-term commitment needed is very different for fuel suppliers than for shipowners. Therefore, clear demand signals, such as long-term offtake agreements with defined prices and volumes, will be essential to give fuel producers the confidence to invest and bring projects into operation. By 2030, the global supply of low-GHG fuels is projected to be between 70 and 100 Mtoe per year (see Figure 3 ). Shipping will need to compete with other industries for its share and is expected to receive only a small portion of this.
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