Clarksons Research on Friday (3 January) released their latest Green Technology Tracker, including full year 2024 data points, charting the progress of alternative bunker fuel uptake and investments in energy saving technologies across the global shipping fleet. 

Summarising the latest Tracker, Steve Gordon, Global Head of Clarksons Research, commented: “With overall newbuild order volumes reaching their highest level since 2007, alternative fuel has continued to play a prominent role representing 50% of all tonnage ordered in 2024.

Across 2024, we have reported 820 vessels ordered of 62.2m GT involving alternative fuel capability (727 orders of 52.1m GT excluding LNG Carriers), a record level of investment.

There has been a return to LNG dual fuel technology dominating (accounting for 70% of alternative fuelled tonnage ordered excluding LNG Carriers, up from 43% in 2023, with methanol declining to 14% share from 30%). Overall, we have reported orders for vessels capable of using either LNG (390 orders, 297 excluding LNG Carriers), methanol (118 orders), ammonia (25 orders), LPG (72 orders) or Hydrogen (12 orders).

Additionally orders involving “ready” status have increased to around a fifth of all orders (452 orders, 21% of tonnage ordered). Across the fuel types, ammonia and methanol have been prominent as alternative fuel “ready” choices (ammonia: 130 orders, methanol: 320).

Outside vessel segments that can utilise cargo (100% of LNG Carrier tonnage ordered in 2024 was LNG dual fuel capable, VLGC/VLAC/VLEC: 90% LPG/ethane/ammonia dual fuel), the 12,000+ TEU Containership segment (71% LNG, 17% methanol) and Car Carriers (78% LNG, 21% methanol) had the highest levels of alternative fuel order adoption in 2024. Meanwhile, the lowest share of alternative fuel uptake in 2024 came in sectors such as Ultramaxes (4%), Handysize (4%) and MR Tankers (1%).  

With the confirmed orderbook (~50% of orderbook tonnage is today alternative fuelled) and projected investment in the coming years, we forecast that over a fifth of all fleet capacity will be alternative fuel capable by 2030 (2017: 2% of fleet capacity “on the water”, 2024:  8%, 2030(f): >20%).

Investments in port infrastructure and the availability of “green” fuels continue to lag, with our Green Technology Tracker detailing 276 ports with LNG bunkering and 275 ports with shore power connection in place or planned but only 35 ports with methanol bunkering available and planned.

With an ageing fleet (13.1 years on a GT weighted basis, up from a low of 9.7 years in 2013), around on third of fleet capacity rating D or E under CII last year and lengthening lead times (~3.7 years) at major shipyards, retrofitting of Energy Saving Technologies (ESTs) remains a crucial part of shipping’s decarbonisation pathway. 

Significant Energy Saving Technologies (ESTs) have been fitted on over 10,360 ships, accounting for >37% of fleet tonnage: this includes propeller ducts, rudder bulbs, Flettner rotors, wind kites, air lubrication systems and others (>580 ships with air lubrication system and >145 units involving “wind” assistance in the fleet and orderbook). Our tracker also includes 37 vessels in the fleet (plus 12 newbuild orders) testing onboard carbon capture technology. And the share of fleet that is fitted with an “Eco” engine has risen to over 34%.

We now estimate that shipping’s global GHG emissions will have increased by ~4% y-o-y in 2024 to over 1 billion tonnes of CO2e on a WTW basis and have moved above pre Covid-19 levels, with a higher proportion of time being spent at sea (amid Red Sea re-routing), some increases in speed (especially in the container market, albeit we project the underlying long term trend for declining speed will continue) and trade growth offsetting the growing share of alternative fuelled vessels, “eco” ships and tonnage with ESTs.”

Photo credit: Venti Views on Unsplash
Published: 6 January, 2025

Shipowners continued to invest for a future of lower emissions in 2024, with 600 vessels capable of using alternative fuels ordered until 13 December, according to classification society Lloyd’s Register (LR) on Thursday (2 January). 

The new orders grew the total orderbook by more than 50%, to 1,737 vessels.

The in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels. Combined with current orders, the fleet will stand at 3,597 – around 4.8% of all vessels in service and on order. 

But with the IMO’s 2030 target on zero and near-zero emission energy use crossing the five-year horizon, orders will need to accelerate further to meet the required 5-10% of shipping’s energy consumption.

“These numbers show the significant effort the industry is making to reach net-zero emissions,” said James Frew, Business Advisory Director, at LR. 

“As the maritime transition towards decarbonisation advances, the next steps will require greater alignment between industry ambitions, regulatory measures and, crucially, incentives to rapidly grow global production capacity for the alternative fuels shipping will need.” 

Methanol-fuelled vessels led the way amongst new fuels, with 119 orders adding more than a third to the existing orderbook. In early 2024 LR, which classed the very first methanol conversion in 2015 – the ro-pax Stena Germanica – was appointed to support and class Stena Line’s next two fast ferry conversions. 

It also teamed up with Danish alternative fuel specialist Green Marine to deliver training and consultancy around methanol fuel, helping to deliver the skills needed to make alternative-fuelled vessel operation a reality.

Ammonia-fuelled vessel orders more than doubled compared to the previous year, to 22 vessels. In 2025 the first ammonia-fuelled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the carbon-free fuel. 

As illustrated in LR’s Fuel For Thought report on ammonia published in March 2024, securing the safety of ammonia-fuelled ships through design, training and regulation will be crucial to maximise any opportunity for decarbonisation.

Hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024. Two hydrogen-powered passenger ferries ordered by Norwegian transport company Torghatten Nord are set for LR class, while a memorandum of understanding with H2Terminals, HiDROGEN and D3IM was signed to assess the feasibility of a green hydrogen infrastructure project in the UK. LR also granted AiPs for several new hydrogen vessels, including ferries and tugboats.

Related: LR: Safety and supply crucial for widespread adoption of ammonia bunker fuel
Related: LR report sees surge in methanol engine retrofits in 2023, calls it a ‘defining trend’

Photo credit: william william on Unsplash
Published: 3 January, 2025

The Port of Long Beach (PLB) in late December released the Clean Marine Fuels White Paper as part of efforts to identify solutions capable of reducing emissions from ships.

“To understand the opportunities and challenges related to the adoption of clean marine fuels, the Port of Long Beach hired ICF Consulting to develop this white paper as an educational resource and guidance document,” stated PLB

“This document is also intended to prepare and position the port and its stakeholder for adopting low carbon alternative fuels.

“The white paper provides high level information on the array of currently available low carbon marine fuels, along with an exploration of the potential infrastructure needs for their deployment.”

The document covers the use of different types of clean bunker fuels such as green hydrogen, green methanol, green ammonia, renewable LNG and biofuels for shipping.

“The shift to clean marine fuels is no longer optional but a necessity for the sustainability of the maritime industry,” stated PLB in its closing remarks.

“This transition, while presenting challenges such as high costs, limited fuel availability, and the need for extensive infrastructure development, is advancing due to evolving policy frameworks and growing industry commitment.

“Addressing these obstacles will require targeted initiatives and robust collaboration between public and private sectors. Continued policy support, government funding, and sustained industry commitment will be essential to driving this progress and ensuring the long-term sustainability of maritime operations.”

Editor’s note: The 123-page Clean Marine Fuels White Paper may be downloaded from the hyperlink here.

Photo credit: Clean Marine Fuels White Paper
Published: 26 December 2024