Shipowners demonstrated their commitment to lower emissions in 2024 by ordering 600 alternative-fuel-capable vessels, increasing the orderbook to 1,737 ships. Combined with the in-service fleet, this brings the total to 3,597 vessels, equating to 4.8% of all vessels in service and on order.
Methanol emerged as the leading alternative fuel, with 119 new vessel orders and continued advancements in vessel conversions and training. Ammonia-fueled vessels also gained traction, with orders doubling to 22 as the industry prepares for the first ammonia engines in 2025. Hydrogen fuel consolidated its niche, with new projects and partnerships signaling its potential in passenger and smaller vessel segments.
LNG solidified its position as the most widely adopted alternative fuel, with over 350 orders, while LPG orders grew modestly, showing potential for broader use beyond carrier vessels. However, significant uncertainty persists around the cost and availability of zero- and near-zero-emission fuels, highlighting the need for coordinated efforts to develop supply chains and infrastructure.
LR played a pivotal role in alternative fuel advancements, collaborating on ammonia and hydrogen initiatives, retrofitting vessels with wind-assisted propulsion systems, and exploring nuclear propulsion options. New nuclear technologies gained momentum, with LR supporting studies on safety and feasibility for small modular reactor-powered ships.
Efforts to capture and transport carbon advanced in 2024, as LR supported CO2 carrier designs and studied port capabilities for offloading captured carbon. These technologies are seen as essential for decarbonizing hard-to-abate sectors and creating feedstocks for carbon-based e-fuels.
Global collaboration increased, with LR establishing centers for sustainable maritime transport in India and Greece and conducting lifecycle assessments for sustainable vessel practices. Initiatives like the Maritime Fuel Supply Dialogues aimed to address the scaling challenge by fostering regional fuel development in Asia-Pacific and Africa.
As the industry prepares for a pivotal 2025, regulatory measures such as FuelEU Maritime and IMO mid-term strategies will define the next steps toward decarbonization. Shipowners, regulators, and stakeholders must align efforts to scale alternative fuel production and accelerate the transition to a net-zero emissions future.