LR: alternative-fueled ship orders rose 50 percent in 2024

compared to the previous year, to 22 vessels.

In 2025, the first ammonia-fueled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the fuel, LR said.

LR noted that hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024.

While vessel orders related to new fuels progressed in 2024, liquefied natural gas (LNG) also strengthened its position as shipping’s most widely adopted alternative fuel, the classification society said.

More than 350 vessels (including LNG carriers) were ordered, according to LR.

Another established alternative fuel, liquefied petroleum gas (LPG), also drew further orders.

Currently, LPG carrier vessels are the only users of the fuel, but there remains potential for other users to take up the fuel, LR said.

Maritime’s decarbonization drive

Looking further ahead, the prospect of nuclear propulsion for commercial vessels gained momentum in 2024, driven by increasing shipowner interest in the advance of small modular reactor technology, LR said.

LR also said that 2024 was also notable for growing maturity in the carbon transport and sequestration market, which will be essential both for decarbonizing hard-to-abate industrial sectors and providing feedstock for carbon-based e-fuels.

These efforts, alongside increasing investment from shipowners, set the scene for a “crucial” year ahead for the maritime’s decarbonization drive, it said.

The first four months alone, with the introduction of FuelEU Maritime in January and the anticipated finalization of IMO mid-term measures in April, will make 2025 a “defining” year for the industry’s voyage towards net-zero emissions, LR said.