Mon 19 Jan 2026, 06:25 GMT | Updated: Mon 19 Jan 2026, 06:30 GMT | Evangelia Fragouli

Alternative fuel vessel orders maintain momentum despite softer 2025 market


Lloyd's Register data shows 590 alternative-fuel vessels ordered in 2025, with LNG dominating.


Ship at sea.
Alternative fuel vessel orders remained robust in 2025, though the industry faces a financing gap and infrastructure challenges to meet 2030 decarbonisation targets. Image credit: Om Mishra / Unsplash

Shipowners ordered 590 merchant and leisure vessels in 2025 that will be able to operate on alternative fuels at delivery, representing 45.5m gt, according to analysis by Lloyd’s Register (LR) using Clarksons data.

LR put the alternative-fuel-capable orderbook at 1,942 vessels, including 1,259 LNG-capable, 385 methanol-capable, 139 LPG-capable, 55 ethane-capable, 53 hydrogen-capable, 45 ammonia-capable, 22 biofuel-capable, and four nuclear-capable ships.

Including vessels already operating with alternative-fuel capability, Lloyd’s Register said the combined in-service fleet plus orderbook totals 4,542 vessels amounting to 294.7m gt, which it estimated at 2.1% of global fleet and orderbook tonnage.

The classification society said the ordering pace will still need to increase if the industry is to meet proposals linked to the International Maritime Organization (IMO)’s 2030 checkpoint for zero and near-zero emission energy, and it pointed to tightening regional policy drivers in Europe, including FuelEU Maritime.

LNG remained the leading choice in 2025, with 407 LNG-capable orders recorded for the year and continued concentration in container, tanker and gas carrier segments, LR noted. It added that LNG’s near-term appeal rests on lower CO₂ emissions compared with conventional marine fuels, while flagging the need to address methane slip and scale bio-LNG and synthetic LNG pathways for longer-term alignment.

Methanol continued to draw orders, with 134 methanol-capable vessels reported in 2025, and Lloyd’s Register stated that it revised its low-flashpoint fuel rules in July to reflect evolving safety expectations and maintain alignment with the IMO IGF Code.

For other fuels, the classification society reported 24 additional LPG-capable orders and six ammonia-capable orders during 2025, while hydrogen added 13 orders. LR said hydrogen interest remains focused in certain segments, including passenger ferries and shallow-draft vessels, where fuel cells are being evaluated for low-emission operation.

Biofuels also gained ground in newbuild specifications, with 11 biofuel-capable orders in 2025, up from eight a year earlier, taking the biofuel-capable orderbook to 22 vessels, LR said. It cited increased uptake of FAME blends, including B30 RF, at ports such as Singapore, Algeciras and Antwerp.

On the retrofit side, Lloyd’s Register reported a renewed focus on LNG conversions, but said yard throughput remains well below what would be required at peak. It put global retrofit capacity at about 465 vessel conversions per year, with around 16 retrofit-capable yards, mainly in China and the Middle East, versus a projected peak need of more than 1,000 conversions annually. Those figures have also been repeated in third-party coverage of LR’s retrofit reporting.

LR also said efficiency measures are playing a larger role alongside fuel choices, noting that 28.5% of vessels currently on order have selected at least one energy-saving device. Lloyd’s Register's reporting on propulsion retrofits indicates that high-efficiency propellers can deliver 3–10% fuel savings, while rudder bulbs can achieve around 3.5% reductions.

The classification society also pointed to wider system constraints beyond ships themselves. Its Global Maritime Trends Barometer has placed energy-transition alignment at 24–30% versus 2030 objectives, highlighting gaps in energy infrastructure and workforce readiness.

On financing, LR’s Maritime Decarbonisation Hub and the Environmental Defense Fund (EDF) have published work highlighting a trillion-plus dollar investment gap that could slow the shift away from fossil fuels.



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