The latest statistics from DNV’s Alternative Fuels Insight (AFI) platform indicate that 298 ships with alternative fuel propulsion were ordered in 2023 – an 8% increase on the previous year – with methanol showing the biggest surge in interest.
In a statement issued today (9 January), DNV said that the AFI stats indicated that 2023 ‘saw methanol go mainstream, with a sharp increase in orders (138), putting it neck and neck with LNG (130)’.
The 138 total (which excludes methanol carriers) was almost a fourfold increase on the 35 ordered to run on methanol in 2022. DNV said that the ‘dominating segment’ for this fuel was container ships (106), followed by bulk carriers (13) and car carriers (10).
The classification society added that 2023 was ‘a breakout year for ammonia’, with 11 orders for ammonia-fuelled vessels and more in the pipeline. Hydrogen, however, still has a way to go as 2023’s five order were down on the 18 in 2022.
Commenting on the findings, Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: ‘As we navigate towards a greener maritime future, the growing demand for alternative-fuelled vessels speaks volumes. These orders send pivotal signals to fuel providers and other important partners on shipping’s decarbonisation 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.’
Ørbeck-Nilssen added that the switch to new fuels should not detract from efforts to improve ships’ efficiency, arguing that: ‘It is however crucial to emphasise 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 decarbonisation outcomes both now and leading up to 2030.’
The orders for LNG-fuelled vessels were down year-on-year from 222 to 130 and the fuel was pipped by methanol. However, DNV said that: ‘When looking at newbuilds alone LNG would be in the lead as a considerable proportion of methanol orders were for retrofits.’
Furthermore, DNV added that 2023 saw LNG ‘finally break the 1,000 vessel barrier (excluding LNG carriers)’ – which the classification society said showed the fuel’s ‘continued importance in the maritime energy transition’. The containers segment was the most active for LNG with 48 vessels ordered, followed by car carriers (40), and tankers (30).
Martin Wold, Principal Consultant in DNV’s Maritime Advisory business, pointed out that ‘investments in alternative-fuelled vessels have been heavily driven by the container and car carrier newbuild boom over the last three years’ – and now it ‘remains to be seen if this trend continues into 2024’.
