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Report: Ship design and timeline planning key to green fuels conversion of box ships

Finds ‘Preparing Container Vessels for Conversion to Green Fuels’ report published by Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

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Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping on Friday (28 September) published a report ‘Preparing Container Vessels for Conversion to Green Fuels’ provides a technical, environmental, and techno-economic analysis of the impacts of preparing container ships for conversion to green fuels (i.e. methanol, ammonia).

The study found that although preparing for the transition to alternative fuels requires additional upfront investment, preparation can pay off in the long term with intelligent ship design and careful planning of conversion timelines. The conclusion of the study is as follows:

Building dual fuel and conversion-ready new builds typically increases newbuild CapEx by 1-16% of the cost for a standard fuel oil newbuild, depending on the planned alternative fuel, desired range, and preparation level. Total CapEx for newbuilding and conversions range from 1033% of the cost of a standard fuel oil newbuild (see Table 15).

post 54506 Table 15

The increased tank volumes required for methanol and ammonia mean that costs associated with lost cargo have a big impact on the total lifetime costs. In the twin island vessel design used here, lost cargo space can be reduced by placing tanks under the accommodation, but this must be done during the newbuild phase, which increases newbuild costs and the risks associated with committing to a particular future fuel.  When tank preparation is not possible and additional alternative fuel tanks must be added in cargo areas later, this has a large impact on costs from cargo losses.

We have analyzed the total costs of newbuilding, conversion and cargo losses for vessels with different preparation levels for each fuel and provided recommendations for newbuild readiness levels, depending on the desired future fuel, conversion timelines, and range (see Figure 15,16). The costs of conversion mean that for short conversion timelines (3-8 years), dual fuel vessels make economic sense.  In most cases where conversion is expected in a timeline of 8-10 years, and full range for the alternative fuel is required, some degree of preparation reduces the total costs.

post 54506 Figure 15
post 54506 Figure 16

Converting unprepared vessels only makes economic sense on longer timelines or where reduced range options reduce cargo loses.  However, the different preparation levels (1-3) we analyzed only had a small impact on newbuild and total costs and very little impact on the total lifetime cost. However, in general the earlier you expect to convert, the more you should prepare. The desired range after conversion, on the other hand, has a much larger influence on conversion CapEx, and therefore the total lifetime cost. Reduced range vessels may offer cost effective options for conversion, where feasible.

When converting from LNG to ammonia, some of the required installations for ammonia are already installed, and as a result the conversion costs are lower than converting from fuel oil. When compared with an ammonia-fuel oil dual fuel newbuild, the total CapEx add-on including LNG option and the conversion cost, is around 30% of a fuel oil newbuild price. Our study shows that the additional cost for the LNG option is recovered over the period before conversion to ammonia because of the assumed lower cost of LNG as fuel, however the fuel price of LNG compared with fuel oil has a big impact on this calculation. If an LNG vessel’s fuel tank is not prepared at newbuild phase, then conversion to ammonia is not feasible for this type of vessel.

Our emissions analyses showed that CO2 emissions from the conversion is minimal, at around 0.3 of the lifetime emissions of a fuel oil vessel.  If the vessel is replaced with a newbuild, instead of converted, the emissions related to building a new vessel, is equal to around 1.5 years emissions from operating on fuel oil or 1.7 years of operation on LNG. This shows that conversion is also a valid option from an emission reduction perspective.

Note: The complete report ‘Preparing Container Vessels for Conversion to Green Fuels’ can be obtained from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping through the link here.

Photo credit: Venti Views on Unsplash
Published: 3 October, 2022

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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