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Alternative Fuels

Filling the gap in liability and compensation for alternative bunker fuel spills

Joel Ong recently wrote a blog post highlighting emerging and critical liability and compensation gaps concerning spills or leaks of alternative bunker fuels and explored possible solutions to address them.

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Joel Ong, presently a LLM Candidate at Harvard Law School

With the rise in the use of alternative fuels as bunker fuels in the shipping industry, Joel Ong, presently a LLM Candidate at Harvard Law School, recently wrote a blog post highlighting liability and compensation gaps concerning spills or leaks of these fuels and explored possible solutions to address them. 

The following is a summary of the original post from international law blog CIL Dialogues:   

The shipping industry is betting big on alternative fuels for its energy transition. Based on the 2024 orderbook, over 1700 vessels have been ordered with alternative fuel propulsion capabilities (with a more than 50% increase in 2024). 

These ‘future fuels’, which serve as alternatives to fossil-fuels, are critical if the International Maritime Organization (IMO) is to deliver on its 2023 GHG Strategy of reaching net‑zero GHG international shipping emissions ‘by or around 2050.’ But using these fuels poses a new challenge: the main IMO liability conventions that protected coastal States and affected parties from oil spills do not adequately protect them against spills or leaks of alternative fuels as these new substances behave very differently compared to fossil fuels.

With the rise in alternative fuels being transported both as cargo and used as bunker fuel, the present issues are threefold: (1) existing IMO liability conventions that are in force do not apply to alternative fuels, (2) the HNS Convention is not in force, and (3) even if it were in force, and although alternative fuels are often defined as HNS falling within the HNS Convention, the Convention only applies if they are transported as cargo, but not as bunker fuel. Alternative fuels such as hydrogen, biodiesel, methanol, ammonia, or liquefied natural gas (LNG) are not persistent fossil-fuel oils (Article 1(5), 1992 CLC) within the meaning of “oil” in existing conventions (i.e. they are, as their name suggests, non-oil in nature to address climate change).

The result is an incoherent patchwork of regulations applicable to these new alternative fuels, which would result in lack of liability and compensation in the event of an accident or disaster, potentially undermining the industry and IMO’s decarbonisation efforts.

The ongoing review by the IMO Legal Committee is a critical and promising opportunity to proactively fill these emerging liability gaps. However, it must act swiftly and draw lessons from the past. By the time substantive discussions on liability for alternative fuels begin, new fuels and vessel types will likely be in operational trials or early commercial deployment.

A serious incident involving a new alternative fuel—absent a fit-for-purpose and adequate liability and compensation framework—could undermine public confidence and potentially derail the long-term prospects of that decarbonisation option altogether. For these reasons, this issue should be given the utmost priority and attention by the IMO and the shipping community and addressed as soon as practicably possible.

This blog post was written prior to the author’s study in the U.S. on 31 July 2025 and is part of the conference paper the author presented at the CIL-CLIMA Conference on the Decarbonization of Shipping and Alternative Fuels and is supported by the MPA-CIL Oceans Governance Research Programme funded by the Singapore Maritime Institute (SMI-2023-MA-03).  

Note: The original blog post can be read here. 

Related: DNV: LNG dominates alternative-fuel vessel orderbook for 2024
Related: LR: 600 vessels capable of using alternative bunker fuels ordered in 2024

 

Photo credit: Joel Ong
Published: 22 October, 2025

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Decarbonisation

DNV: New research shows how regulation could reshape shipping

DNV summarizes findings of its latest Maritime Forecast to 2050, exploring how future scenarios could affect marine fuel demand, technology uptake, fleet investments, and competitiveness.

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Classification society DNV on Thursday (24 September) released a new article summarizing findings of its latest Maritime Forecast to 2050, exploring how future scenarios could affect marine fuel demand, technology uptake, fleet investments, and competitiveness: 

Shipping’s energy transition has entered a new phase. The technology options are increasingly well understood. LNG, methanol, biofuels, wind-assisted propulsion, and emerging ammonia solutions are no longer concepts but commercial realities. Yet despite this progress, shipowners face a more difficult challenge than ever: making investment decisions amid unprecedented regulatory uncertainty.

The 2026 edition of DNV’s Maritime Forecast to 2050 argues that uncertainty itself is now becoming one of the most important drivers of fleet strategy. 

“Decisions taken today on vessel design, retrofits, and fuel capability will determine competitiveness for decades, while the outcome of ongoing regulatory negotiations could significantly reshape the economics of shipping’s energy transition,” says Øyvind Sekkesæter, Senior Consultant at DNV and lead author of this year’s report. “Maritime Forecast to 2050 aims to assist that decision-making with our latest core insights and case study examples.”

Four regulatory scenarios could shape shipping very differently

This year’s Maritime Forecast takes a scenario-based approach, presenting four possible regulatory futures for shipping. These range from the full adoption of IMO’s initially approved Net-Zero Framework (NZF) to its rejection and prolonged political gridlock, while also exploring several intermediate outcomes, including a delayed or revised NZF and scenarios where regional regulations play a more prominent role in driving decarbonization. Rather than predicting which outcome is most likely, the scenarios illustrate how different regulatory futures could affect fuel demand, energy-efficiency uptake, investment signals, and fleet competitiveness.

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Stronger global regulation accelerates demand for low-GHG fuels and increases the attractiveness of energy-efficiency measures, while the absence of such regulation slows market development. The result is a transition whose pace may vary significantly depending on future policy decisions.

“For shipowners, this means the challenge is no longer identifying a single fuel pathway that fits the operational profile of their fleet. Instead, it is preparing fleets that remain competitive across multiple possible futures,” Sekkesæter concludes.

Tapping the fleet’s efficiency potential

Fully realizing the fleet’s energy-saving potential requires improvements not only to newbuilds but also to existing ships through retrofits.

Installing energy-saving devices during scheduled dry-docking can be a highly cost-effective decarbonization strategy, as illustrated by the Maritime Forecast’s case study of a hypothetical 15-year-old 5,000 TEU containership (built in 2013).

This envisages USD 2.35 million being invested to retrofit the ship with hydrodynamic enhancements including a bow retrofit, propeller upgrade, and a propeller boss cap fin.

The vessel can achieve estimated fuel savings of around 16% under the modelling assumptions. Evaluating the investment under three price scenarios for low sulphur heavy fuel oil (LSHFO) results in payback periods from 1.4 years to 4.2 years.

Note: The full Maritime Impact article by DNV can be found here. 

 

Photo credit: DNV
Published: 25 September, 2026

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Alternative Fuels

Höegh Autoliners orders six more ammonia, methanol-ready Aurora class PCTCs

Höegh Autoliner inked a contract with China Merchants Group for six additional Aurora class PCTCs, which will be built by China Merchants Heavy Industry (Jiangsu) and delivered between 2029 and 2031.

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Höegh Autoliners orders six more ammonia, methanol-ready Aurora class PCTCs

Höegh Autoliners on Tuesday (22 September) said it has formally signed a contract with China Merchants Group (CMG) for six additional Aurora class pure car and truck carriers (PCTCs). 

The contract was signed during a high-level meeting in Naples attended by senior representatives from both companies, including Miao Jianmin, Chairman of China Merchants Group. Chair of Höegh Autoliners, Leif O. Høegh, and Andreas Enger, CEO of Höegh Autoliners.

The six additional dual-fuel LNG and zero-carbon-ready vessels will be built by China Merchants Heavy Industry (Jiangsu) Co., Ltd. (CMHI) and delivered between 2029 and 2031. 

With 18 Aurora Class vessels in the programme, Höegh Autoliners is building the fleet needed for a zero- emission future and setting the pace for the transformation of deep-sea shipping.

The Aurora Class vessels can carry up to 9,100 cars and reduce carbon emissions per transported car by up to 58 per cent compared with conventional PCTCs. They have DNV’s ammonia-ready and methanol-ready notations and are designed to be converted to run on future zero-carbon fuels.

Leif O. Høegh, Chair of the Board of Directors of Höegh Autoliners, said: “For nearly 100 years, we have developed, adapted and led the way through major changes in shipping. It is in our DNA to keep moving and challenge what is possible. This signing continues that story. We are investing in the vessels that will define our fleet for decades and help move our industry towards zero emissions.”

Andreas Enger, CEO of Höegh Autoliners, said: “This is not just another vessel-building agreement. It is a statement about the future of deep-sea shipping and the role we intend to play in shaping it. The Aurora Class is at the heart of our fleet renewal and our path to a sustainable future. By expanding the programme to 18 vessels, we are securing efficient, flexible and future-ready capacity while setting the pace towards zero-emission operations.”

Miao Jianmin, Chairman of China Merchants Group, said: “Höegh Autoliners is a pioneer in international shipping and will celebrate its 100th anniversary next year. We would like to offer our congratulations in advance! Over the past century, Höegh Autoliners has achieved remarkable development and has grown into a leading company in the global RoRo shipping sector. We truly admire what you have accomplished.”

 

Photo credit: Höegh Autoliners
Published: 24 September, 2026

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Newbuilding

CLdN orders two LNG dual-fuel RoRo vessels from HD Hyundai Heavy Industries

New vessels will be built with space reserved for the future addition of larger electric shaft generators and batteries as the technology matures.

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CLdN orders two LNG dual-fuel RoRo vessels from HD Hyundai Heavy Industries

Europe’s multimodal logistics providers CLdN on Tuesday (22 September) announced it has placed an order for two new 6,700 lane-metre RoRo vessels with HD Hyundai Heavy Industries (HD Hyundai HI).

Construction of the new vessels is set to begin towards the beginning of 2028, with delivery scheduled for mid-2029. 

“The ships will be the 15th and 16th vessels ordered by CLdN from the South Korean shipbuilder over the past 10 years,” the company said on its website. 

The new vessels will be dual-fuel capable, able to run on standard marine diesel or LNG, and will be built with space reserved for the future addition of larger electric shaft generators and batteries as the technology matures.

While fuel consumption per vessel is expected to be similar to that of CLdN’s existing 5,000 lane-metre class ships, the increased cargo capacity of the new vessels is expected to deliver 30 to 40% better fuel efficiency per tonne-kilometre of cargo carried making the vessels the most fuel-efficient RoRo ships in the world.

The new vessels are designed with one additional deck and increased ground space compared to CLdN’s existing 5,000 lane-metre class ships, with a configuration specifically adapted for trailer cargo. 

“The addition of these vessels to CLdN’s fleet will ensure customers benefit from an even broader range of shipping options via CLdN’s extensive fleet of RoRo and container vessels,” the company said. 

 

Photo credit: CLdN
Published: 24 September, 2026

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