Retrofit

LR: Regulatory direction on clean marine fuels to shape engine retrofit market

LR says the trajectory of the retrofit market will depend heavily on regulatory developments, particularly any progress on a global framework to incentivise zero- and near-zero emission fuels.

Published

5 months ago

March 27, 2026

Admin

LR: Regulatory direction on clean marine fuels to shape engine retrofit market

Classification society Lloyd’s Register (LR), in its latest engine retrofit report published on Thursday (26 March), said the longer conventionally fuelled vessels remain in service, the greater the pressure will be to retrofit them later to meet emissions targets, potentially compressing demand into a narrower and more costly timeframe.

In its latest Engine Retrofit Report: Applying alternative fuels to existing ships (2026 update), LR’s analysis shows that 2025 delivered limited growth in announced retrofit projects, but significant progress in capability.

A small number of high-profile conversions, including a successful methanol retrofit of a large two-stroke engine on the container vessel COSCO Shipping Libra, demonstrate that methanol conversions are technically viable at the deep-sea end of the market and moving towards repeatable solutions.

Alongside methanol, the report highlights expanded retrofit offerings from major engine technology providers, including Everllence, Wärtsilä and WinGD, for LNG and ethanol during the year. LNG continues to attract interest as a lower-cost, transitional option, while ethanol is gaining traction as a credible candidate for marine fuel development, supported by both operator pilots and OEM announcements.

Maersk’s operator trials showed that Brazilian ethanol can be blended with methanol and marine diesel without affecting engine performance, allowing for higher ethanol mixes. OEM announcements throughout the year further strengthened the case for ethanol. Everllence reported success on all load points with both two-stroke and four-stroke engines, and WinGD announced an ethanol-fuelled two-stroke engine roadmap with retrofit applicability.

The similarity between methanol and ethanol means that future methanol engines should be capable of using ethanol, while existing methanol engines could be converted relatively easily.

The report adds that LNG retrofits remain under discussion with shipowners, supported by existing fuel infrastructure and the potential transition to bioLNG or synthetic methane. Upgrades targeting methane slip on dual fuel engines are also gaining attention.

Despite limited headline conversion announcements, the report showed continued uptake of ‘bridge’ retrofits, including engine upgrades, propulsion optimisation and control system improvements. These projects reduce emissions in the near term and prepare vessels for future fuel conversion, but also compete for yard capacity and engineering resources.

Looking ahead, LR said the trajectory of the retrofit market will depend heavily on regulatory developments, particularly any progress on a global framework to incentivise zero- and near-zero emission fuels.

Mark Penfold, Global Head of Technology – Engineering, Lloyd’s Register, said: “A clear and consistent regulatory signal is the single biggest factor that will unlock investment at scale. Without that, the industry will continue to prepare—but not fully commit.

“Regardless of the timing of regulation, a substantial retrofit market is inevitable. As the existing fleet remains central to global trade, the ability to convert vessels efficiently will be critical to meeting decarbonisation targets.”

The report forms part of LR’s Retrofit Research programme, which serves as a comprehensive hub for ship retrofitting insights, providing annual reports, publications and tools that monitor retrofitting demand, capabilities, and adoption trends.

As the industry progresses towards a more sustainable future, retrofitting may not only be a way to meet environmental objectives but also deliver economic advantages through fuel savings and regulatory compliance.

Note: The Engine Retrofit Report: Applying alternative fuels to existing ships (2026 update) report is available here.

Photo credit: Lloyd’s Register
Published: 26 March, 2026

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LNG Bunkering

EXMAR to convert LNG carrier into floating transshipment unit for bunkering

Vessel will soon undergo a dry-dock including modifications to make the vessel suitable as a floating transshipment unit, dedicated to the LNG bunkering market.

Published

2 weeks ago

August 7, 2026

Admin

EXMAR to convert LNG carrier into floating transshipment unit for bunkering

Ship owner EXMAR on Thursday (6 August) announced that it has taken delivery of the 146,000 m³ LNG Carrier SIMAISMA.

The vessel is secured under an initial seven-year charter contract with a “first-class counterpart”.

“The vessel will soon undergo a dry-dock including modifications to make the vessel suitable as a floating transshipment unit (FTU), dedicated to the LNG bunkering market,” it said in a statement.

The FTU will receive large parcels of LNG from trading LNG carriers and specialised LNG bunkering vessels will load at the FTU before supplying it as a fuel to vessels that use this LNG as a bunker fuel.

EXMAR’s CEO, Carl-Antoine Saverys, said: “EXMAR is gladly assisting its client in further paving the way to unlock LNG as a fuel for the shipping industry.

“The FTU is a smart solution with which our client brings down the costs of the logistics relating to the LNG bunkering.

“With this solution, we are building upon EXMAR’s close to 50 years of LNG experience. We look forward to deploying more of these assets to unlock the full potential of LNG as a fuel for the maritime industry.”

Photo credit: EXMAR
Published: 7 August, 2026

Alternative Fuels

EC clears EUR 103 mil Dutch funding for renewable methanol and hydrogen-powered ships

Scheme will support purchase of vessels powered by renewable methanol or renewable hydrogen and retrofitting of existing vessels to enable them to use renewable methanol and renewable hydrogen.

Published

3 weeks ago

August 3, 2026

Admin

The European Commission recently said it has approved a EUR 103 million (USD 119 million) State aid scheme by the Netherlands to accelerate the greening of the Dutch maritime fleet.

The scheme will support the purchase of new clean and zero-emission vessels powered by renewable methanol or renewable hydrogen and the retrofitting of existing vessels to enable them to use renewable methanol and renewable hydrogen.

It covers different types of vessels, including passenger, cargo and work vessels, mainly operating in the short-sea shipping segment. The support will take the form of direct grants awarded under an open, transparent and non-discriminatory selection process.

The scheme aims to help companies overcome high upfront investment costs and limited market incentives that currently slow the uptake of clean shipping technologies. The aid will be granted between 2027 and 2031 and will help bridge the investment gap in line with the objectives of EU legislation such as the FuelEU Maritime and the EU Emission Trading System.

The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU and the 2022 Climate, Environmental Protection and Energy Aid Guidelines (CEEAG).

“The Commission concluded that the scheme is necessary and appropriate as the supported investments would not take place without public support at the same scale and within the same timeframe. The measure is also proportionate as it has limited effects on competition and trade in the internal market,” it said.

Photo credit: Guillaume Périgois on Unsplash
Published: 3 August, 2026

Retrofit

DNV on key lessons learned from a 20,000 TEU methanol retrofit delivered by global partners

DNV demonstrated how complex methanol retrofits can be carried out in practice through a project involving COSCO Shipping, CHI Shanghai, MARIC, suppliers, and DNV.

Published

2 months ago

June 15, 2026

Admin

DNV on key lessons learned from 20,000 TEU methanol retrofit

Classification society DNV recently highlighted how complex methanol retrofits can be carried out in practice through a project involving COSCO Shipping, CHI Shanghai, MARIC, suppliers, and DNV.

Its latest Maritime Impact article detailed challenges in design integration, construction, commissioning, and operations, while demonstrating how close collaboration and early planning support more efficient delivery and knowledge transfer:

The world’s first methanol conversion project for a mega container carrier was completed at CHI‑Shanghai’s yard in September 2025. At nearly 400 metres in length and with a capacity of 20,000 TEU, the seven‑year‑old vessel became the first ship of its kind to be retrofitted to run on methanol.

Delivered through close coordination between COSCO Shipping, CHI Shanghai, designers, suppliers, and DNV, and supported by a process of continuous learning, the project demonstrated that deep, first‑of‑a‑kind retrofits can be executed safely, on time, and at industrial scale.

Designing a methanol conversion for a megaship

The vessel’s fuel system, designed only for conventional fuels, required fundamental changes to enable safe and compliant methanol operation across propulsion, auxiliaries, storage, and safety systems.

The general design was developed by MARIC, while CHI Shanghai carried out the detailed engineering and served as EPC contractor. The scope included conversion of the ship’s MAN B&W 11S90 main engine and two of its four Wärtsilä auxiliary engines to dual‑fuel operation. In parallel, new methanol fuel tanks with a total capacity exceeding 15,000 cubic metres were installed forward of the engine room, together with new fuel preparation and supply systems.

Coordinating the complexity of retrofitting

Delivering this as a retrofit rather than a newbuild added complexity that is often underestimated. Existing structural arrangements could not simply be replaced, and new systems had to be integrated into confined spaces, requiring innovative construction sequences and tight interface management between suppliers.

“This was a very complex project involving many parties, including engine makers, fuel system suppliers, and automation and safety specialists,” says Yan Hao, Commercial Director at CHI‑Shanghai. “It was also the first time all of these suppliers had worked together on a methanol retrofit of this scale. Coordination was critical.”

Note: The full article by DNV can be read here.

Photo credit: DNV and COSCO Shipping
Published: 15 June, 2026