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Royal Caribbean Cruises Ltd has confirmed that its newest class of ships will be powered by liquefied natural gas (LNG) and introduce the use of fuel cell technology.

The cruise operator has signed a memorandum of understanding with shipbuilder Meyer Turku for the new class of vessel under the project name 'Icon'. The vessels are scheduled to be delivered in the second quarters of 2022 and 2024.

Royal Caribbean says it will begin testing fuel cell technology on an existing Oasis-class ship in 2017, and also run progressively larger fuel cell projects on new Quantum-class vessels being built over the next few years.

"With Icon class, we move further in the journey to take the smoke out of our smokestacks," said Richard Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. "We are dedicated to innovation, continuous improvement, and environmental responsibility, and Icon gives us the opportunity to deliver against all three of these pillars."

Commenting on the company's switch to LNG, Fain said: "Increasing the commitment to LNG makes it easier for suppliers to make their own infrastructure commitments. As more ships are built for LNG, the number of ports that support it will grow."

The Icon ships are expected to run primarily on LNG, but will also be able to run on distillate fuel to accommodate occasional itineraries that call on ports without LNG infrastructure.

On the issue of fuel cells, Harri Kulovaara, Royal Caribbean's chief of ship design, remarked: "The introduction of fuel cells represents another dramatic step forward for the maritime industry, which has only made limited experiments using the technology. We believe fuel cells offer very interesting design possibilities. As the technology becomes smaller and more efficient, fuel cells become more viable in a significant way to power the ship's hotel functions. We will begin testing those possibilities as soon as we can, and look to maximize their use when Icon class debuts."

Kulovaara said Royal Caribbean had been eyeing fuel cells for nearly a decade, and believes the technology is now at a stage of development that justifies investment. "There is a long lead time for Icon class, and we will use that time to work with Meyer Turku to adapt fuel cell technology for maritime use." Kulovaara added that additional regulatory standards would also need to be developed for the technology.

Because of the long lead time, Kulovaara said that many Icon design elements are in early stages. The Icon ships would likely accommodate approximately 5,000 passengers, he said, but details are still being worked out.

Icon is the first new ship class announced by Royal Caribbean since Celebrity Cruises' new Edge class, which debuts in 2018. The company is also expanding its fleet with new Oasis- and Quantum-class ships for Royal Caribbean International. Fain said the new ships are in line with Royal Caribbean's strategy of moderate capacity growth.

The announced ship order is contingent upon the completion of contractual conditions, including documentation and financing. Final contracts are expected to be completed by year end.

Based upon current ship orders, Royal Caribbean says its projected capital expenditures for full year 2016, 2017, 2018, 2019 and 2020 are $2.4 billion, $0.5 billion, $2.6 billion, $1.5 billion and $2.0 billion, respectively.

Image: Royal Caribbean's Harmony of the Seas cruise vessel.