Methanol at pole position for Jan alternative fuel ship orders: DNV

Methanol retained the pole position in the race among future marine fuels by new ship orders last month, classification society DNV said Feb. 2, as container lines sought to harness the alternative fuel's decarbonization potential.

In a monthly note, DNV said 23 new orders for methanol-capable ships were recorded in January, exceeding all other alternatives to conventional oil-based fuels.

Of the orders around 70% were in the container sector, while the remainder were mainly made up of vessels in the bulk and roll-on/roll-off segments, according to the note.

Last month, Singapore-based, Japanese-owned container line Ocean Network Express unveiled an order for 12 13,000-TEU dual-fuel ships that can run on methanol conventional oil-based fuels, which are due to be delivered from 2027.

CMA CGM has recently also signed up to retrofit at least one 9,300-TEU ship to be powered by methanol, according to media reports. The French line did not reply to an email seeking comment.

Methanol's momentum came as 138 ships powered by the fuel were ordered in 2023, making it the most popular alternative fuel for the first time by this barometer on a yearly basis, DNV data showed.

Currently, a total of 29 ships capable of running on methanol are in operation while 228 are on order, suggesting a significant expansion of methanol-fueled ships in the coming years, according to DNV.

"Strong new order activity continues to demonstrate a promising trajectory in the uptake of alternative fuel vessels," said Martin Wold, a consultant at DNV. "The order book for methanol-fueled ships continues to grow rapidly."

Platts, part of S&P Global Commodity Insights, assessed the bunker price for methanol in Singapore at $18.744/Gigajoule Feb. 2, versus $15.463/Gj for 0.5%-sulfur marine fuel, the prevalent bunker.

Methanol can be carbon neutral when produced from bio-feedstocks or renewable hydrogen, but current supplies are generally generated from fossil fuels and have little decarbonization effect.

LNG performance

Meanwhile, 10 LNG-fueled vessels were ordered in January, of which the bulk were tankers and car carriers, according to DNV.

A total of 24 LNG-powered ships were delivered last month, representing a monthly record. The number of such ships has doubled between 2021 and 2024, reaching 493 now, DNV said. This was more than any other type of alternative propulsion system for vessels in operations.

Two ammonia-capable ships were added to DNV's database in January, bringing the total number of vessels that can be powered by the novel marine fuel to 13, according to the classification society.

"Interest in ammonia is also on the rise...we expect this to continue to grow in the months and years ahead," Wold said.