LNG-Powered Vessels Overtake Methanol as the Future of Green Shipping in 2024

In 2024, LNG-powered vessels have become the dominant choice for green shipping, surpassing methanol as the preferred alternative fuel. This marks a shift from 2023 when methanol-fueled orders were more common. Methanol-powered container ship orders have dropped significantly, now making up just 21 % of new capacity ordered, compared to 51 % the previous year. This decline is due to concerns over green methanol’s future availability, high processing costs, and delays in production. Over two-thirds of planned methanol production facilities still lack final budget approval.

Shipping companies are now turning back to LNG, with a record 1,76 million TEU of LNG-powered capacity ordered in 2024, accounting for 55 % of total orders, a significant increase from 2023. Major companies like Maersk are splitting new ship orders between LNG and methanol, aiming to reduce greenhouse gas emissions using bio-LNG.

DNV’s data shows that LNG continues to lead in alternative-fueled vessel orders, especially in larger container ships over 14 000 TEU. No orders for methanol propulsion have been placed for these larger vessels in 2024. LNG-fueled vessels now represent over 2 % of the global fleet, a number expected to grow in the coming years. Industry experts highlight LNG as the only practical fuel pathway currently available, with potential future use of liquefied biomethane and hydrogen-based e-methane.

LNG’s rise reflects its practicality for immediate carbon reductions, making it the leading alternative fuel as the shipping industry works toward decarbonization. However, the sector’s path to sustainability is still evolving, with future developments in green fuel technologies likely to impact long-term choices.