Methanol-Fueled Vessels Surge as Demand for Alternative Fuels Grows

The demand for alternative fueled vessels is showing substantial growth.

In May 2024 alone, 33 new orders for alternative-fueled vessels were placed, with methanol-fueled vessels leading the pack, accounting for 23 of the total orders, according to DNV’s Alternative Fuels Insight (AFI) platform. The majority of these orders are for the container segment, followed by bulk carriers and car carriers.

LNG-fueled vessels continue to trail behind methanol, with eight new orders registered in the same period. The month also saw two new orders for ammonia-fueled vessels, a promising sign of the rising interest in the fuel.

The data supports the trend of steady growth in the ordering of alternative fueled vessels in 2024. To date, a total of 127 new orders have been placed, representing a significant 55% increase compared to the first five months of 2023.

“The momentum in the new order market towards alternative fueled vessels is strong,” said Jason Stefanatos, Global Decarbonization Director at DNV Maritime.

Methanol has been the standout, with 70 new orders placed in 2024, which accounts for 55% of all new orders for alternative fueled vessels this year. “While this is still far behind LNG in overall terms, these latest figures demonstrate a clearly increasing appetite from the market for methanol-fueled vessels,” he said.

Two new orders have also been placed for ammonia fueled vessels, bringing the total this year to 11, compared to just two for the whole of 2023. “While still clearly in its early stages, this provides further evidence of the emergence of ammonia on the alternative fueled market,” said Stefanatos.

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