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LR report sees surge in methanol engine retrofits in 2023, calls it a ‘defining trend’

More than 100 retrofitted vessels are due to join only methanol conversion currently in operation, “Stena Germanica”, which converted in 2015; ammonia engine technology moved closer to maturity in 2023.
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RESIZED Chris Pagan

One of the defining trends of the year was the surge in methanol engine retrofits, according to classification society Lloyd’s Register (LR) on Thursday (11 January) on its analysis of vessel ordering, technology and fuel developments.

More than 100 retrofitted vessels are due to join the only methanol conversion currently in operation, Stena Germanica, which converted in 2015. Alternative fuel conversions were explored in detail in LR’s Engine Retrofit Report, which identified a significant gap in potential demand for retrofits and the current capability and capacity of yards to handle them.

With the combination of global emissions reduction targets, carbon pricing and performance measures now in place, the dynamics of ship ordering, LR said technology development and fuel supply are shifting rapidly. 

With just 27 methanol-capable vessels currently in service, 143 new construction orders were placed in 2023, which including previous orders will take the methanol-capable fleet to 227, according to data from Clarksons.

Ammonia engine technology moved closer to maturity in 2023, with the commercial launch of Wärtsilä’s first ammonia four-stroke engine, the first full-scale two-stroke engine tests by MAN Energy Solutions and the first approval-in-principle for an ammonia two-stroke engine, granted to WinGD’s X-DF-A engine concept by LR. A key signal of the urgency of shipping’s decarbonisation agenda and the potential of ammonia as a carbon-free energy carrier is the fact that four firm orders have already been placed for ammonia-fuelled vessels, all in 2023 and two classed by LR, with several more orders under discussion or publicly reported.

Orders for vessels powered by fossil-based alternative fuels, which will need to be replaced by synthetic or biomass-derived equivalents to allow zero- or near-zero emissions, also continued to surge in 2023. Orders to the end of the year will increase the LNG-fuelled fleet by 90% to 1,938 vessels and the LPG-fuelled fleet by 78% to 189 vessels. Overall, ordering of alternative fuelled vessels reached its highest volume ever in 2023. Combined with emerging demand for alternative fuel conversions, those orders are an early positive indicator that the global fleet could be technically capable of meeting IMO’s 5-10% target for zero- or near-zero carbon fuel use by 2030.

Onboard carbon capture is also increasing in maturity, with 16 retrofits contracted for in 2023 taking the total orders to 22 vessels on top of an existing fleet of 31. The greater activity reflects the evolving marinisation of the technology, with LR issuing Approvals in Principle to Rotoboost and Erma First last year. Eleven of the retrofits booked in 2023 are for vessels a decade or older, indicating that owners are using carbon capture as a solution to see ageing vessels through their life, complying with regulations for the next decade or so without the need for fuel conversion.

Alternative fuel readiness

Realisation of the IMO’s 2030 target will depend on fuel availability as well as shipboard technology. The Zero Carbon Fuel Monitor from LR’s Maritime Decarbonisation Hub has tracked the technology, investment and community readiness of key candidate zero and near-zero emissions fuels across the supply chain since 2018. 

Its latest update in October 2023 – as well as the recent ‘Future of Marine Fuels’ report – show that despite concrete developments in fuel supply over 2023, including the first orders for ammonia bunkering barges and large-scale green methanol supply contracts, supply needs to be scaled up significantly for many fuel candidates.

Among the general themes behind rising readiness levels is a significant scale-up of renewable energy harvesting, driving increased investment readiness of green fuels resources. Additionally, there has been a notable rise in the number of national hydrogen strategies and establishment of production facilities. The increasing acceptance and deployment of carbon capture, utilisation and storage has also contributed to greater viability of ‘blue’ fuels that offer an alternative to fuels produced entirely by using renewable electricity.

 

Photo credit: Chris Pagan on Unsplash
Published: 12 January, 2024

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 mt annually.

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July 20, 2026

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Ship design and engineering service provider Western Baltic Engineering on Thursday (16 July) showcased its latest concept design for a green methanol bunkering vessel, developed for the operational needs of the Port of Klaipėda.

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 metric tonnes (mt) annually. 

“It is Western Baltic Engineering’s first concept dedicated exclusively to green methanol bunkering, expanding our portfolio of alternative-fuel vessel solutions,” the company said in a social media post.

“Building on our experience in methanol-ready vessel design, it reflects our continued focus on enabling the industry’s transition to cleaner fuels.”

“As the maritime sector evolves, engineering companies have a responsibility not only to respond to market needs but also to anticipate future challenges,” said Marius Arkusauskas, Director at Western Baltic Engineering.

“By exploring emerging technologies and alternative fuel applications, we help our partners prepare for the next generation of maritime operations while contributing to a more sustainable future.”

 

Photo credit: Western Baltic Engineering
Published: 20 July, 2026

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China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.
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July 17, 2026

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China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

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MTF releases new safety guidelines for methanol-fuelled ships

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility.

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July 17, 2026

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CHUTTERSNAP MT

The Maritime Technologies Forum (MTF) recently announced the publication of new guidelines to support companies in developing new Safety Management Systems (SMS) and strengthening existing SMS for ships using methanol as marine fuel.

As the maritime industry accelerates its decarbonisation efforts, low-carbon methanol has emerged as one of the most scalable alternative fuel options. 

Its liquid state under ambient conditions, compatibility with existing fuel infrastructure, and increasing industry adoption make methanol an attractive near-term solution. However, its toxicity, low flashpoint and invisible vapour and flame characteristics introduce new safety challenges for the maritime industry that require enhanced procedural controls and risk management measures for safe operations.

“Developed collaboratively by MTF members and industry stakeholders with expertise in methanol fuel technologies and the International Safety Management (ISM) Code, the guidelines provide methanol-specific recommendations across all functional areas of an SMS,” MTF said in a statement. 

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility. 

The guidelines emphasised the importance of learning from hazardous occurrences, near-misses and accidents involving methanol fuel.

The report also highlighted the importance of developing versatile SMS frameworks capable of supporting mixed-fuel operations during the transition period, where both conventional fuels and methanol may be carried and used onboard.

Human factors are identified as a critical element in ensuring safe methanol operations. The guidelines recommend that companies assess competency, training, familiarisation and resource requirements based on individual roles and responsibilities.

By providing clear, practical recommendations aligned with the ISM Code, the new MTF guidelines aim to support the safe and effective adoption of methanol as fuel while enabling the maritime industry’s transition towards lower-carbon shipping.

Note: The new guidelines can be viewed here.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 17 July, 2026

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