12 Apr Record Share Of Newbuild Orders Alternative Fuelled
Clarksons Research is closely tracking uptake of “green” technology that will impact the shipping industry’s 883mt (2008: 1,028mt) and 2.4% contribution to global CO2 (and 1.8% of all GHG). Reviewing data points and latest trends in technology uptake and fleet renewal extracted from our upcoming Fuelling Transition
A record 61% share of all orders in Q1 were alternative fuelled
In Q1 2022, a record 61% of tonnage ordered was alternative fuelled (excluding LNG carriers this was still an all-time high at 48% of orders by tonnage). 57% of orders by tonnage (101 orders of 9.3m GT) were LNG fuelled, with 3.4% methanol fuelled (4 orders of 0.6m GT), 0.6% of orders ethane fuelled (2 of 0.1m GT), and 0.7% included battery hybrid propulsion. A further 12% of orders were “Ammonia Ready” (26 orders of 2.0m GT), 1.4% “LNG ready” (10 orders of 0.2m GT) and 0.1% of orders were “hydrogen ready” (3 orders of 15k GT). Please note these add up to excess 100% of the alternative fuels capable total due to an increasing trend towards multiple fuels / fuel ready to provide future optionality (In Q1, 10% of orders were LNG fuel plus Ammonia Ready). For context, in 2021 32.7% of newbuild tonnage ordered was for alternative fuel capable vessels (449 units), up from 209 orders in 2020 and 46 orders in 2016.
4.5% of fleet and 38% of the orderbook tonnage now alternative fuelled
- Uptake of alternative fuels has continued to progress, with 4.5%* (2021: 3.9%, 2017: 2.2%) of the fleet on the water and 37.8% (2021: 27.8%, 2017: 11.8%) of the orderbook in tonnage (GT) terms capable of using alternative fuels or propulsion. We are projecting that 5% of global fleet capacity will be alternative fuelled by the start of 2023.
- Of the orderbook, 33.3% of tonnage is set to use LNG (647 units), 2.3% to use LPG (88 units) and 3.2% due to use other alternative fuels (c.200 units; including methanol (24), ethane (11), biofuels (5), hydrogen (6) and battery/hybrid propulsion (c.150)).
- Over 270 ships in the fleet and 94 on the orderbook are designated “LNG ready”, while there are now 74 “Ammonia ready” and 9 “Hydrogen ready” vessels on order.
As pressures build globally to find solutions to moderate climate change, the Green Transition will cause fundamental change to shipping, trade, offshore and energy.
Read full article at Hellenic Shipping News