Shipowners invested nearly 8 billion dollars in ships that can burn alternative fuels in April, reflecting the industry’s significant steps toward a greener future.
“Shipowners’ investment and commitment to more sustainable options is evident from recent ship orders and deliveries,” according to shipping brokerage Intermodal.
The data collected by the company’s analysts show that in April alone, contracts were signed for the construction of 41 ships with the potential to use alternative fuels, worth 7.98 billion dollars.
According to Intermodal, the fleet of vessels capable of burning new fuels reached 1,835 vessels at the end of April, with an additional 1,515 vessels under construction, “representing a significant future investment of approximately 221.28 billion dollars.”
Fuel mix
Intermodal’s analysts place particular emphasis on the role of liquefied natural gas (LNG) in the energy mix of shipyards, as well as the existing fleet.
Specifically, at the end of April, there were 1,106 LNG-fueled vessels in the water and another 910 more on order, i.e. 15.13% of the total order book.
On the other hand, Norwegian classifier DNV’s Alternative Fuels platform saw orders for 23 new alternative fuel vessels in April and a total of 93 in the first four months, up 48% year-on-year.
Methanol took the lion’s share with 12 new vessels in April, followed by LNG, with contracts for seven vessels. All the orders for methanol are for tankers, an industry with relatively low adoption of alternative fuels, DNV reported. Between January and April 2024, 47 ships with methanol (+42% on an annual basis) were registered.
Ammonia has also dynamically entered the field of alternative fuels in recent months. “Although initially sluggish, interest in ammonia continues to gain momentum,” DNV noted. Orders were placed for four new ammonia vessels in April, following five under construction in the first quarter of this year, demonstrating increased shipping interest in this type of propulsion.
At the same time, scrubbers and environmentally friendly electronic machines are on the rise. Based on the latest data available to Intermodal, 5,720 ships, i.e. 5.22% of the world fleet, are equipped with scrubbers.
