The maritime sector experienced a milestone year in 2024, driven by an exceptional surge in alternative-fuelled vessel orders. Data from DNV’s Alternative Fuels Insights (AFI) platform reveals that 515 such vessels were ordered, marking a 38% increase from 2023 and emphasizing the industry’s commitment to decarbonization.
The rise in orders was led by the container and car carrier segments, which accounted for 62% of alternative-fuel orders in 2024. Notably, 69% of container ship orders featured alternative fuel capabilities, reflecting shipping companies’ efforts to meet sustainability demands from cargo owners and replace aging fleets. LNG was the dominant fuel choice, powering 67% of these vessels.
Knut Ørbeck-Nilssen, CEO of Maritime at DNV, highlighted the industry’s progress while underscoring the need for further action: “The growth in alternative fuel vessels is encouraging as we move towards decarbonization. However, challenges remain, particularly in ensuring fuel supply and maintaining safety standards for seafarers. Collaboration with fuel suppliers and stakeholders, alongside investments in training and upskilling, will be key to success.”
While LNG led the pack with 264 orders—double the 130 orders in 2023—other fuels also gained traction. Methanol accounted for 166 orders, representing 32% of the AFI orderbook, with container vessels dominating this segment. Ammonia, though in its early stages, showed promise with 27 orders, including 10 non-gas carrier vessels, primarily bulk carriers.
Jason Stefanatos, DNV’s Global Decarbonization Director, noted the shifting dynamics in fuel preferences: “Green methanol and ammonia hold significant long-term potential, while LNG continues to serve as a critical bridging fuel, benefiting from established infrastructure and offering immediate emissions reductions. Renewable Natural Gas (RNG) could further enhance LNG’s role in the energy mix.”
The operational fleet of LNG-powered ships doubled between 2021 and 2024, reaching 641 vessels, with a record 169 deliveries in 2024. Projections indicate this figure could double by the end of the decade.
LNG bunkering infrastructure also advanced, with the number of bunker vessels growing from 52 to 64 in 2024. However, a widening gap between LNG supply and demand is anticipated, necessitating accelerated development of bunkering facilities. The EU’s “Fit for 55” initiative, which mandates LNG bunkering capabilities in key ports, is expected to drive infrastructure expansion.
The 2024 boom in alternative-fuelled vessel orders highlights the maritime industry’s transition towards cleaner energy solutions. As market conditions, infrastructure, and fuel production evolve, the sector must balance short-term strategies with long-term innovation to achieve its decarbonization goals.
