Maritime Industry Makes Waves Towards Decarbonisation
Key Ideas
  • 600 vessels using alternative fuels ordered in 2024, marking significant progress in decarbonisation efforts.
  • Methanol and ammonia-fuelled vessels see substantial growth in orders, showing industry's interest in new fuels.
  • Hydrogen fuel gains traction with 12 vessel orders, highlighting a shift towards greener energy sources in the maritime sector.
  • Challenges remain in scaling up alternative fuel production and infrastructure to meet decarbonisation targets.
In 2024, the maritime industry witnessed a surge in orders for 600 vessels capable of using alternative fuels, demonstrating a strong commitment to reducing emissions. Methanol-fuelled vessels led the way with a significant increase in orders, while ammonia-fuelled vessel orders more than doubled compared to the previous year. Hydrogen fuel also made strides, with 12 vessels ordered and various projects underway to assess the feasibility of green hydrogen infrastructure. The industry's adoption of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) as alternative fuels also continued to grow. Despite these positive developments, uncertainties persist around the availability and cost of zero or near-zero emission fuels. The need for scaling up production capabilities and infrastructure for alternative fuels is crucial to meet decarbonisation targets. The LR Maritime Decarbonisation Hub highlighted the importance of creating stable, attractive markets and supply chains to encourage investment in sustainable fuels. Public intervention is identified as essential to facilitate the scaling up of alternative fuel production.
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