Described because the maritime trade’s “distinctive newbuilding 12 months”, 2024 yielded a document variety of LNG-fueled ship deliveries, in response to the newest information from DNV’s Different Fuels Insights (AFI) platform.
Because the maritime trade reinforces its dedication to decarbonization, the final 12 months was marked by a big improve in alternative-fueled ship orders, with a complete of 515 such ships on order (excluding LNG carriers), translating to a 38% year-on-year improve in comparison with 2023, AFI information reveals.
The container and automotive provider segments dominated the orderbook, making up 62% of all various gas orders in 2024.
Whereas methanol drove newbuilding orders for alternative-fueled vessels at first of the 12 months, LNG was the trade’s various gas of selection by year-end. The variety of LNG vessel orders positioned in 2024 was 264, over double that of 2023 (130), DNV reported.
The variety of LNG-powered ships in operation doubled between 2021 and 2024, and a document variety of deliveries – extra exactly 169 – was famous in 2024. By the top of 2024, 641 LNG-powered ships had been in operation. In keeping with the AFI orderbook, this quantity is anticipated to double by the top of the last decade.
As a result of maturing LNG bunkering infrastructure, the variety of LNG bunker vessels in operation grew from 52 to 64 over the past 12 months. This progress is anticipated to proceed in 2025 as properly.
The numerous hole between LNG bunkering provide and demand is anticipated to widen over the subsequent 5 years based mostly on the AFI orderbook. Addressing this problem by creating the suitable infrastructure for various fuels – each for vessels and bunkering – can create demand indicators to stimulate long-term gas manufacturing, DNV defined, including that the provision of LNG in ports is anticipated to extend with the Match for 55 setting necessities on a big community of ports.
Within the container ship section, 69% of all orders had been for ships able to being powered by various fuels and LNG was the popular gas selection (67%).
Nevertheless, 2024 additionally noticed transport gamers investing in a number of various fuels, leading to 166 methanol orders (32% of the AFI orderbook), reflecting transport’s rising curiosity in a various gas pool because it strives to cut back greenhouse fuel (GHG) emissions. Most of those methanol orders (85) had been within the container section.
Ammonia additionally noticed “promising momentum” within the earliest months of the 12 months and continued to develop all through 2024. A complete of 27 orders had been positioned for ammonia-fueled vessels. The primary non-gas provider ammonia-fueled vessel orders had been positioned in 2024 (10), primarily within the bulk provider section (5). Whereas nonetheless in its early levels, this offers additional proof of ammonia’s emergence within the various gas market, DNV acknowledged.
Knut Ørbeck-Nilssen, CEO Maritime at DNV, mentioned: “As we work in the direction of decarbonizing the trade, we’re inspired by the expansion in various gas vessels over the previous few years. Whereas current figures are promising, we should hold pushing ahead. The technological transition is underway, however provide of other gas remains to be low. As an trade we have to work with gas suppliers and different stakeholders to make sure that transport has entry to its share of other fuels sooner or later. Additionally it is necessary that the protection of seafarers is ensured as we make this transition. It will require funding in upskilling and coaching.”
Jason Stefanatos, World Decarbonization Director at DNV, added: “Market situations, infrastructure improvement, gas manufacturing updates, and cargo homeowners’ wants are all shaping the demand for various fuels, each within the brief and long run. The shifting developments in LNG and methanol orders this 12 months is perhaps as a result of sluggish improvement of inexperienced methanol manufacturing. In the long term, inexperienced methanol has potential to be a part of the power combine together with ammonia.
“In parallel, LNG provides an important bridging gas possibility benefiting from present infrastructure and short-term emissions reductions whereas being able to appearing as a long-term resolution as properly, assuming RNG (Renewable Pure Fuel) will probably be obtainable and offered at a aggressive worth.”
