Home Green Marine DNV: LNG dominated alternative-fuel ship orderbook in ‘exceptional newbuilding’ year
January 10, 2025,
by
Ajsa Habibic
Described as the maritime industry’s “exceptional newbuilding year”, 2024 yielded a record number of LNG-fueled ship deliveries, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.
Courtesy of DNV (Archive)
As the maritime industry reinforces its commitment to decarbonization, the last year was marked by a significant increase in alternative-fueled ship orders, with a total of 515 such ships on order (excluding LNG carriers), translating to a 38% year-on-year increase compared to 2023, AFI data shows.
The container and car carrier segments dominated the orderbook, making up 62% of all alternative fuel orders in 2024.
While methanol drove newbuilding orders for alternative-fueled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130), DNV reported.
The number of LNG-powered ships in operation doubled between 2021 and 2024, and a record number of deliveries – more precisely 169 – was noted in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.
Due to the maturing LNG bunkering infrastructure, the number of LNG bunker vessels in operation grew from 52 to 64 over the last year. This growth is expected to continue in 2025 as well.
The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook. Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering – can create demand signals to stimulate long-term fuel production, DNV explained, adding that the availability of LNG in ports is expected to increase with the Fit for 55 setting requirements on a large network of ports.
In the container ship segment, 69% of all orders were for ships capable of being powered by alternative fuels and LNG was the preferred fuel choice (67%).
However, 2024 also saw shipping players investing in multiple alternative fuels, resulting in 166 methanol orders (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas (GHG) emissions. Most of these methanol orders (85) were in the container segment.
Ammonia also saw “promising momentum” in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fueled vessel orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia’s emergence in the alternative fuel market, DNV stated.
Knut Ørbeck-Nilssen, CEO Maritime at DNV,