With vessels operating for 25 to 30 years and only around 4% of the fleet renewed annually, newbuild decisions made over the coming decade will establish much of the engine capacity available in 2050, Global Centre for Maritime Decarbonisation said on Thursday (17 September). 

Yet having the capacity to consume a new fuel does not guarantee its uptake. Dual-fuel engines allow shipowners to switch between conventional fuels and the selected new fuel as economics and regulations evolve; continued fuel competitiveness is therefore critical to what vessels ultimately consume.

These are among the findings of Navigating the maritime fuel transition: How fuel economics, regulations, and fleet decisions shape the future bunkering landscape, based on a model jointly developed by the GCMD and Boston Consulting Group (BCG).

The model illustrates this dynamic in its base scenario. With the Tier-2 penalty under the IMO Net-Zero Framework held at USD 380/tCO2e through 2050, methanol dual-fuel engines account for around 10% of fleet engine capacity in 2050, but methanol represents just 2% of fleet energy consumption. With conventional fuels remaining more economical under this regulatory regime, methanol dual-fuel vessels continue to operate on fuels cheaper than methanol (Figure 1).

A global carbon price of USD 700/tCO2e materially changes the transition

The base scenario demonstrates how fuel economics can limit uptake even when vessels have the capacity to use new fuels. This picture changes if the IMO Tier-2 penalty rises to USD 700/tCO2e by 2050, at which point new fuels, including dropins, reach approximately 61% of fleet energy consumption (Figure 1).

By contrast, EU regulations alone will not drive a marked global shift, as they cover only around 20% of international shipping’s energy demand.

Overall cost of using e-methanol and e-ammonia is near parity

While a stronger global carbon price can accelerate the shift towards new fuels, the model does not point to a clear cost winner between e-methanol and e-ammonia.

E-ammonia’s production cost advantage is largely offset by higher logistics costs arising from its toxicity, including specialised crew training, larger exclusion zones, and more complex bunkering. As a result, the overall cost (Figure 2) of using e-ammonia and e-methanol is near parity through to 2050.

Professor Lynn Loo, CEO of GCMD, said: “Many vessels ordered over the coming decade will still be operating in 2050. Shipowners are therefore making long-lived engine choices before the relative economics of future fuels are clear. 

“Our modelling puts into perspective just how difficult closing the cost gap between new and conventional fuels will be. The carbon price required to close this gap is substantial. And achieving it will be particularly challenging in today’s geopolitical environment. Understanding the signposts that could change these economics will be critical to the decisions the industry makes today.”

Anand Veeraraghavan, Managing Director & Senior Partner at BCG, said: “The maritime fuel transition is being shaped as much by policy and cost uncertainty as by technology readiness. 

“Rather than offer a single prediction, our approach with GCMD maps how sensitive each fuel pathway’s competitive position is to a handful of critical variables — policy scenarios, key cost drivers, and potential restrictions. Our hope is that this gives shipowners, fuel suppliers, port operators, and infrastructure investors a practical tool to stress-test their own fuel strategies as conditions change.”

Photo credit: Global Centre for Maritime Decarbonisation
Published: 18 September, 2026

Classification society Korean Register (KR) on Tuesday (15 September) said it has signed a Memorandum of Understanding (MoU) with HD Hyundai Heavy Industries (HHI), UK-based wind propulsion technology company BAR Technologies, and the Liberian International Ship & Corporate Registry (LISCR) to jointly develop a 174K LNG carrier equipped with the WindWings® wind-assisted propulsion system.

The agreement was signed on 15 September at Gastech 2026 in Bangkok and aims to assess the technical feasibility and safety of applying wind-assisted propulsion technology to LNG carriers as the global shipping industry accelerates its transition toward decarbonisation.

The project will focus on a 174K LNG carrier developed by HHI featuring a forward accommodation arrangement. 

By positioning the crew accommodation block toward the bow, the design provides additional space on the upper deck, creating an opportunity to integrate BAR Technologies’ WindWings® system. 

WindWings® uses large, rigid wing sails installed on a vessel to harness wind as supplementary propulsion. By reducing reliance on the vessel’s main propulsion system, the technology can lower fuel consumption and greenhouse gas emissions while improving overall energy efficiency.

Under the collaboration, HHI will lead the vessel’s basic design and design review, while BAR Technologies will provide technical data covering the arrangement and specifications of WindWings®, structural strength, operational concepts and expected fuel savings.

KR, together with LISCR, will assess the safety and technical suitability of the design against applicable rules and international requirements. Based on the outcome of the assessment, KR will also consider granting Approval in Principle (AIP), supporting the application and future commercialization of wind-assisted propulsion technology on LNG carriers.

Hong-ryul Ryu, Senior Executive Vice President and CTO of HHI, said: “Through this project, we aim to integrate wind-assisted propulsion technology into our forward accommodation LNG carrier design, further enhancing the competitiveness of next-generation, low-emission LNG carriers.”

John Cooper, CEO of BAR Technologies, said: “We already have WindWings® deployed across 10 bulkers and tankers, with 23 WindWings® collectively saving approximately 100 tonnes of CO₂ per day. We look forward to extending the application of WindWings® to next-generation gas carriers, establishing a robust foundation for safe commercialisation, and providing shipowners with a genuinely attractive environmental solution.”

Yongsok Lee, Chairman and CEO of KR, said: “Through this joint development project, KR will assess the safety and technical suitability of applying wind-assisted propulsion to this LNG carrier design against applicable rules and international requirements, with a view to granting Approval in Principle.”

Alfonso Castillero, CEO of the Liberian International Ship & Corporate Registry, added: “By assessing wind-assisted propulsion for LNG carriers from an early design stage, the partners can help translate the decarbonization challenge into practical opportunities for improved efficiency, future-ready ship designs and competitive advantage, without compromising safety or quality.”

Photo credit: Korean Register
Published: 16 September, 2026

US cryogenic equipment company Chart Industries recently said the company will supply the liquid hydrogen fuel systems for Samskip’s SeaShuttle 1 and 2, the world’s first hydrogen-powered container vessels.

The company said the project will demonstrate how liquid hydrogen can enable zero-emission operations for commercial shipping, bringing together advanced storage technology, fuel conditioning systems, bunkering interfaces, and safety solutions to support reliable vessel operations. 

“Most importantly, these are not demonstration concepts. They are commercial vessels designed to operate on the Rotterdam-Oslo corridor, showcasing how hydrogen is moving from possibility to practice,” it said in a social media post. 

“We’re proud to support Samskip and our project partners as we help advance the future of sustainable maritime transport.”

Photo credit: Chart Industries
Published: 16 September, 2026