Ian TaylorClarksons Research has published its latest Green Technology Tracker, detailing significant advancements in the adoption of alternative fuels and energy-saving technologies within the global shipping industry during the first half of 2024. The report highlights substantial investments and emerging trends in the sector.
‘Investment into alternative fuel continued in the first half of 2024, accounting for around one-third of all newbuild orders and 41% of all tonnage placed,’ said Steve Gordon, Global Head of Clarksons Research giving an overview of the findings. ‘Orders were announced for vessels capable of using LNG (109 orders, 51 excluding LNG Carriers), methanol (49 orders), ammonia (15 orders), LPG (42 orders), and Hydrogen (4 orders). Excluding LNG Carriers, the relative share of LNG fuel-capable tonnage increased compared to methanol-capable tonnage from 2023 levels.’
Gordon also noted a decline in the share of alternative fuel ordering compared to the 2022 high of 54% of tonnage ordered. He attributed this to a shift in ship type ordering mix, particularly lower order volumes for containerships confirmed in the first half of 2024. However, the emphasis on future ‘optionality’ has led to an increase in ‘ready’ status orders, now making up about one-fifth of all orders (169 orders, 22% of tonnage ordered).
The confirmed orderbook indicates that approximately 50% of orderbook tonnage is currently alternative fuelled. Clarksons Research forecasts that by the end of the decade, over one-fifth of all fleet capacity will be alternative fuel capable, up from 7% in 2024 and just 2% in 2017.
Despite these advancements and investments in port infrastructure and the availability of ‘green’ fuels are failing to keep up with demand. The Green Technology Tracker reports that 273 ports have LNG bunkering, and 251 ports have shore power connections in place or planned. In contrast, only 29 ports have methanol bunkering available or planned.
The report also highlights the ageing global fleet, with an average vessel age of 12.8 years, up from a low of 9.7 years in 2013. Over 30% of fleet capacity was rated D or E under the Carbon Intensity Indicator (CII) last year. With long lead times at major shipyards (approximately 3.5 years), retrofitting Energy Saving Technologies (ESTs) is crucial for decarbonising the shipping industry. ESTs have been installed on over 8,713 ships, accounting for 33.5% of fleet tonnage.
This includes technologies such as propeller ducts, rudder bulbs, Flettner rotors, wind kites, and air lubrication systems, with more than 493 ships equipped with air lubrication systems and over 116 units involving wind assistance in the fleet and orderbook. Additionally, 31 vessels in the fleet (plus 28 newbuilds) are testing onboard carbon capture technology.
Despite the growing share of alternative-fuelled vessels, “eco” ships, and tonnage with ESTs, Clarksons Research estimates that global greenhouse gas emissions from shipping will increase by approximately 3% in 2024, reaching 1,046 million tonnes of CO2e on a Well-to-Wake (WTW) basis. This rise is attributed to increased time spent at sea, some increases in speed (especially in the container market), and trade growth, offsetting the environmental benefits of greener technologies and fuels.
Clarksons Research’s Green Technology Tracker provides a comprehensive overview of the progress and challenges in the shipping industry’s transition to more sustainable practices, highlighting the critical areas for continued investment and innovation.
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Tom Barlow-Brown
