In response to escalating shipping emissions, the maritime industry is witnessing a historic surge in investments towards alternative fuels. With half of the newbuilding orders in 2024 designed for alternative fuel capabilities, the sector is making significant strides towards decarbonization, aiming to meet international regulations and reduce its carbon footprint.
Key Takeaways
- Record Investment: 50% of newbuilding orders in 2024 are for vessels capable of using alternative fuels.
- Decarbonization Goals: The shipping industry aims for 20% of the global fleet to be alternative fuel capable by 2030.
- Technological Innovations: Energy-saving technologies (ESTs) are being retrofitted to existing ships to enhance efficiency.
Record Investment in Alternative Fuels
According to Clarksons Research, the maritime sector is experiencing unprecedented investment in alternative fuel newbuilds. In 2024, half of all newbuilding orders are for vessels equipped to utilize alternative fuels, a significant increase from 40% in the previous year. This trend reflects a broader commitment to sustainability as the industry grapples with rising emissions.
The Push for Decarbonization
The International Maritime Organization (IMO) has set ambitious targets for the shipping industry, aiming for a substantial reduction in greenhouse gas emissions. By 2030, it is projected that 20% of the global fleet will be capable of using alternative fuels. This shift is crucial as the industry currently contributes approximately 3% of global GHG emissions.
Energy-Saving Technologies (ESTs)
To complement the transition to alternative fuels, the retrofitting of existing vessels with energy-saving technologies is essential. These technologies include:
- Propeller Ducts
- Rudder Bulbs
- Flettner Rotors
- Wind Kites
- Air-Lubrication Systems
As of now, over 8,700 ships have been retrofitted with ESTs, representing 33.5% of the global fleet by tonnage. This retrofitting is vital for meeting the IMO’s Carbon Intensity Index (CII) regulations and reducing overall fuel consumption.
Major Players in the Industry
Leading shipping companies are also making significant commitments to alternative fuels. A.P. Moller-Maersk, for instance, aims for 15-20% of its marine fuel consumption to come from alternative sources by 2030. The company is investing heavily in dual-fuel vessels, with plans to incorporate green methanol and biodiesel into its operations.
Future Outlook
The current trajectory indicates that the shipping industry is on the cusp of a major transformation. With 45% of newbuild orders in 2023 already alternative fuel capable, the momentum is building. However, challenges remain, including the availability of green fuels and the need for regulatory frameworks to support this transition.
As the industry continues to innovate and invest in sustainable practices, the goal of a greener maritime sector is becoming increasingly attainable. The combination of new technologies, regulatory support, and industry commitment will be crucial in steering the shipping sector towards a more sustainable future.
Sources
- Riviera – News Content Hub – Turning green: 20% of global fleet will be alternative-fuel capable by 2030, Riviera Maritime Media.
- ‘Record level of investment’ in alternative fuel newbuilds as shipping emissions climb | TradeWinds, TradeWinds.
- Maersk Eyes 15-20% Alternative Fuels To Power Its Fleet, Marine Link.
- Clarksons: 45% of all newbuild orders placed in 2023 alternative fuel capable | Hellenic Shipping News Worldwide, Hellenic Shipping News.
