Alternative Fuels Maintain Momentum Despite Broader Market Contraction

[By: DNV]

A recent publication by DNV highlights a notable trend in the maritime industry: the demand for vessels powered by choice fuels is on the rise in 2025, even as overall new ship orders slow down. The Alternative Fuels Insight (AFI) platform from DNV reports that during the first half of 2025, new orders for these eco-friendly vessels reached an impressive 19.8 million gross tonnes (GT), marking a remarkable 78% increase compared to last year.

In total,there were 151 alternative-fuelled ships ordered in early 2025,which is slightly less than the 179 recorded during the same period in 2024. However, despite fewer orders, the total GT has surged significantly due to heightened activity within container shipping and other sectors like bulk carriers and tankers. This shift indicates that industries traditionally seen as risk-averse are now embracing alternative fuels as standard practice rather than an experimental option.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, noted that this transition reflects a broader industry evolution. “The energy shift isn’t just about pioneers anymore; it’s being driven by a wave of shipowners who are embedding alternative fuels into their main strategies,” he explained. Even with a slower market for new builds, choices around fuel types are expanding and sustainability considerations are becoming integral to daily operations. He anticipates that investments in fuel options and energy efficiency will pick up pace as regulations become clearer over the next several months.

LNG continues to dominate as the preferred fuel source with orders for 87 vessels totaling around 14.2 million GT so far this year—especially prevalent within container shipping where it accounts for approximately 13.6 million GT across its fleet of ships. Methanol is also gaining traction with about four dozen vessels ordered across various segments including RoPax and tankers amounting to roughly 4.6 million GT.

While ammonia and hydrogen remain relatively niche players at this stage,they’re starting to show promise with three ammonia-powered ships added recently—primarily targeting tankers—and four hydrogen-fueled vessels currently on order.

Jason Stefanatos from DNV remarked on how these trends reflect an industry recalibrating its approach towards sustainability without losing ambition but rather adopting a more strategic investment mindset focused on compliance readiness alongside long-term fuel planning strategies.

The infrastructure supporting these advancements is also progressing hand-in-hand with vessel investments; notably, there were thirteen LNG bunkering ships ordered recently compared to sixty-two already operational worldwide—with February seeing particularly strong activity when eight new orders were placed within this segment alone.

This growth underscores how essential logistics will be in scaling up alternative-fuel usage—especially LNG—as bunkering capabilities become increasingly vital for widespread adoption moving forward.

Explore DNV’s AFI platform here.