Introduction
The global maritime industry has entered a transformative era. In 2024, shipbuilding reached unprecedented levels, marking the strongest year on record for new vessel orders equipped with dual or alternative fuel capabilities. This surge reflects a growing commitment to decarbonization, driven by regulatory pressure, technological innovation, and shifting market dynamics. Among the alternative fuels, Liquefied Natural Gas (LNG) has emerged as the preferred choice, offering a viable bridge toward a cleaner shipping future.
A Historic Year for Shipbuilding
According to DNV’s Alternative Fuels Insights (AFI) platform, 2024 saw 515 new orders for alternative-fuel-capable vessels, a 38% increase compared to 20231. This boom was largely fueled by the container and car carrier segments, which together accounted for 62% of all alternative fuel orders. The trend underscores a strategic shift among shipowners and cargo operators responding to consumer demand for sustainability and preparing to replace aging fleets.
LNG: The Fuel of Choice
Of the 515 vessels ordered, 264 were LNG-powered, more than double the 130 orders placed in 20231. This dramatic rise confirms LNG’s dominance in the alternative fuel landscape. While methanol and ammonia gained traction, LNG remained the most widely adopted fuel, particularly in the container shipping sector, where 67% of new orders were LNG-capable.
Why LNG?
Several factors contribute to LNG’s popularity:
Lower Emissions: LNG significantly reduces sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter, helping vessels comply with IMO 2020 regulations.
Mature Infrastructure: LNG bunkering infrastructure is expanding rapidly. In 2024, the number of LNG bunker vessels grew from 52 to 64, with further growth expected in 2025.
Cost Efficiency: LNG offers relatively stable pricing compared to traditional marine fuels, making it attractive for cost-conscious operators.
Transitional Role: LNG serves as a bridge fuel, enabling immediate emissions reductions while paving the way for future integration of renewable natural gas (RNG) and bio-LNG.
Methanol and Ammonia: Rising Contenders
While LNG led the pack, methanol also saw significant interest, with 166 vessels ordered in 2024, representing 32% of the AFI orderbook1. Most methanol-capable ships were container vessels, reflecting the sector’s openness to fuel diversification.
Ammonia, though still in its early stages, showed promising momentum. 27 ammonia-fueled vessels were ordered in 2024, including the first non-gas carrier orders, mainly in the bulk carrier segment. This signals growing confidence in ammonia’s long-term potential as a zero-carbon fuel.
Deliveries and Fleet Expansion
The number of LNG-fueled ships in operation doubled between 2021 and 2024, with a record 169 deliveries in 2024 alone. By year-end, 641 LNG-powered ships were in service, which is projected to double by 20301.
This expansion is not limited to LNG. The global fleet of alternative fuel-capable ships using LNG, methanol, ammonia, hydrogen, or LPG has now surpassed 2,000 vessels, including those on order.
Infrastructure and Bunkering Challenges
Despite the progress, infrastructure remains a bottleneck. While LNG bunkering is maturing, other fuels like methanol and ammonia face supply chain limitations. The gap between LNG bunkering supply and demand is expected to widen over the next five years, prompting calls for accelerated investment in bunkering infrastructure.
The EU’s Fit for 55 package mandates LNG bunkering capabilities across a wide network of ports, which is expected to boost availability and support further adoption.
Regulatory Drivers: IMO’s Net-Zero Framework
The International Maritime Organization (IMO) has played a pivotal role in shaping fuel choices. In April 2025, the IMO approved a Net-Zero Framework, combining mandatory emissions limits and greenhouse gas (GHG) pricing. These regulations will come into force in 2027 and apply to ships over 5,000 gross tonnage, which account for 85% of global shipping emissions2.
Key elements include:
Global Fuel Standard: Ships must reduce their annual GHG fuel intensity using a well-to-wake approach.
GHG Pricing Mechanism: Non-compliant ships must acquire remedial units, while low-emission vessels earn financial rewards.
IMO Net-Zero Fund: Revenue from emissions pricing will support innovation, infrastructure, and developing nations.
These measures are expected to accelerate the shift toward zero-emission fuels, but transitional fuels like LNG will remain relevant in the near term.
Shipyards and Regional Leaders
Asian shipyards, particularly in China and South Korea, have been in charge of building dual-fuel vessels. Notably, Hudong-Zhonghua Shipyard in Shanghai delivered the world’s largest LNG dual-fuel container ship, the CMA CGM SEINE, in 20243. Meanwhile, Hyundai Heavy Industries in South Korea continues to produce methanol-capable ultra-large container ships for Maersk.
Europe has also played a key role, especially in regulatory support and infrastructure development. The EU’s push for LNG bunkering and green corridors has positioned European ports as critical hubs for alternative fuel adoption.
Market Dynamics and Future Outlook
The surge in alternative fuel orders reflects a confluence of market forces:
Consumer Pressure: Cargo owners are demanding sustainable logistics solutions.
Technological Innovation: Advances in engine design and fuel systems enable greater flexibility.
Investment Trends: Shipowners are future-proofing fleets to avoid stranded assets and regulatory penalties.
Looking ahead, LNG is expected to maintain its dominance through the decade’s end, especially if Renewable Natural Gas (RNG) becomes commercially viable. Methanol and ammonia will continue to gain ground, particularly as green production scales up.
Conclusion
The shipbuilding boom of 2024–2025 marks a turning point in maritime energy transition. With record orders for dual and alternative fuel-capable vessels, the industry is signaling its readiness to embrace cleaner technologies. With its mature infrastructure and emissions benefits, LNG has emerged as the fuel of choice, but the rise of methanol and ammonia suggests a diversified future.
As regulations tighten and infrastructure evolves, shipowners, fuel suppliers, and policymakers must collaborate to ensure a smooth and equitable transition. The journey toward net-zero shipping is underway—and 2024 will be remembered as the year it truly set sail.
The Maritime-Hub Editorial Team
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Maritime-Hub. Readers are advised to research this information before making decisions based on it.
