LNG Powers Unprecedented Growth in Orders for Alternative-Fueled Vessels in 2024

The maritime industry’s commitment to sustainability has fueled a record-breaking surge in LNG-powered vessels in 2024. According to DNV’s Alternative Fuels Insights (AFI) platform, 515 alternative-fueled ships were ordered, a remarkable 38% increase compared to the previous year. This demonstrates the shipping sector’s dedication to meeting decarbonization targets while responding to regulatory and consumer demands for cleaner shipping solutions.

Learn more about alternative fuels in shipping here.

The Drivers Behind the Growth

LNG Leads Alternative Fuel Choices

LNG-powered vessels dominated the alternative-fuel market in 2024, with 264 orders—a staggering increase from 130 in 2023. LNG’s established infrastructure and ability to reduce emissions make it a vital bridge fuel for the industry. Additionally, LNG-powered ships have doubled in operation since 2021, reaching 641 vessels by the end of 2024.

Expanding Fuel Options

Beyond LNG, shipping companies are diversifying their fuel strategies:

• Methanol: Secured 166 orders, primarily in the container segment.
• Ammonia: Gained traction with 27 orders in 2024, up from just eight the previous year.

Challenges in Scaling Alternative Fuels

Infrastructure and Supply

Despite LNG’s advantages, supply challenges persist. The number of LNG bunkering vessels grew from 52 to 64 in 2024, but demand continues to outpace supply. The EU’s Fit for 55 package aims to address this by requiring LNG bunkering infrastructure in more ports. Read about the EU’s Fit for 55 initiative here.

Perspectives from Industry Leaders

Knut Ørbeck-Nilssen, CEO Maritime at DNV:

“While the growth of LNG-powered vessels is encouraging, the industry must ensure fuel supply keeps pace with demand. Additionally, investments in training are critical to ensure seafarer safety.”

Jason Stefanatos, Global Decarbonization Director at DNV:

“LNG is a vital bridging solution, while green methanol and ammonia are promising long-term options. Infrastructure development will determine their viability.”

Why LNG-Powered Vessels Are the Future

LNG-powered vessels represent a critical step in maritime decarbonization. They benefit from an existing infrastructure while offering a clear pathway to integrate Renewable Natural Gas (RNG) as part of future solutions. The increasing orders for LNG vessels underscore the industry’s readiness to transition toward greener shipping.