5% of global fleet alternative fuels-ready by next year – Clarksons

Clarksons Research estimates that by the start of next year around 5% of the operational global fleet by tonnage will be capable of running on alternative fuels or propulsion.

PHOTO: Maersk aims to operate 12 methanol-fuelled vessels by 2024. Maersk

The consultancy argues that even though the orderbook of LNG vessels has swelled with already 676 orders placed, more shipowners are switching to vessels with dual-fuel capability, thus adding flexibility to switch to lower-carbon alternatives in the future.

Updake of alternative fuels is gaining pace rapidly. Of the newbuilds ordered last year, 453 ships were alternative-fuel capable, more than double from the preceding year, Clarksons estimates.

Of current newbuilds in the orderbook, LNG-fuelled make up nearly 35% of the total newbuild tonnage. LPG is the second most favoured alternative fuel with 2% of the total, while other alternative fuels like methanol, ethane, biofuels, hydrogen and battery/hydrogen make up a combined 3%.

LNG bunkering will expand with around 94 more bunkering ports planned, from the current 144.

In addition to carbon-cutting fuel alternative fuels, more vessels have adopted, or are looking to adopt, energy-saving technologies such as propeller ducts, wind kites, Flettner rotors and air lubrication systems.

Over 5,000 vessels are equipped with these energy-saving devises now.

Clarksons also says a widening Hi5 price spread through last year and into this year is set to boost HSFO demand with 256 scrubber-fitted vessels ordered. Around 4,500 vessels, or 23% of the global fleet, are fitted now with scrubbers, it said.