DNV: LNG ‘clear fuel of choice’

A total of 151 alternative-fuelled vessels were ordered in 1H25, slightly behind the 179 orders placed during the first six months of 2024. Even so, the overall GT has increased markedly, showing a 78% y/y growth driven mainly by activity in the container segment, but with notable orders also in the bulker, tanker, and RoPax segments. This concentration suggests that some of the industry’s most commercially exposed and operationally complex segments are now leading the charge, reinforcing the view that alternative fuels are no longer a fringe strategy, but a mainstream investment decision.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, commented: “We’re seeing a broader shift take hold across the industry. The energy transition is no longer driven solely by first movers, it’s now being shaped by a second wave of shipowners who are integrating alternative fuels and technologies into their core strategies. Even in a slower newbuild market, fuel choices are diversifying, and decarbonisation is becoming embedded in everyday decision making. We expect that fuel choices and energy efficiency investments will accelerate as the regulatory framework becomes clearer over the next 4 – 10 months.”

LNG was the clear fuel of choice, accounting for 87 new vessels ordered, totalling 14.2 million GT so far in 2025. The fuel remains dominant in the container segment, with 13.6 million GT (81 vessels). Methanol has also shown strong momentum, with 4.6 million GT (40 vessels) ordered across the container, RoPax, tanker, offshore, and car carrier segments.

Ammonia and hydrogen, while still niche, continue to register activity, suggesting early-stage confidence in their long-term potential. Three ammonia-fuelled were added to the orderbook, primarily in the tanker and general cargo segments (37 000 GT total). Hydrogen made a return with four vessels (114 000 GT) currently on order.

Jason Stefanatos, Global Decarbonisation Director at DNV, added: “The data reflects a sector that is actively recalibrating. We’re not seeing a slowdown in ambition, but rather a more measured approach to investment – one that balances optionality, compliance readiness, and long-term fuel strategy. As shipowners weigh compliance strategies, the upcoming fuel intensity rules, which form part of the IMO’s Net-Zero Framework, are expected to accelerate this shift. We’re watching closely to see how this will be reflected in future ordering behaviour, particularly as fuel availability and infrastructure evolve, and we get further regulatory clarity when IMO’s lifecycle assessment guidelines are decided.”

Supporting infrastructure is also evolving in parallel with vessel investments. In 1H25, 13 LNG bunkering vessels were ordered, compared to 62 in operation globally, with February marking the strongest month for this segment with eight orders. This growth reflects a steady alignment between alternative-fuelled vessel orders and the supporting logistics required to scale their use, particularly for LNG, where bunkering capacity is becoming a critical enabler of continued adoption.

Read the article online at: https://www.lngindustry.com/small-scale-lng/02072025/dnv-lng-clear-fuel-of-choice/