London, United Kingdom | January 07, 2026 – New insight from Lloyd’s Register (LR) highlights that alternative-fuelled vessels continued to capture a strong share of newbuild orders in 2025, as shipowners reinforced their commitment to long-term energy transition strategies. Even amid a softer global shipbuilding market, the maritime sector’s push toward decarbonization proved resilient throughout the year.
According to Lloyd’s Register (LR) analysis of Clarkson’s data, shipowners ordered 590 merchant and leisure vessels totaling 45.5 million GT capable of operating on alternative fuels at delivery. The total alternative-fuel-capable orderbook now stands at 1,942 ships, with LNG leading the way (1,259 vessels), followed by methanol (385), LPG (139), hydrogen (53), ethane (55), ammonia (45), biofuel (22), and nuclear (4).
Collectively, these vessels bring the future alternative-fuel-capable fleet. both in-service and on order, to 4,542 vessels (294.7m GT), representing 2.1% of the global fleet and orderbook tonnage.
However, with the IMO’s 2030 decarbonisation targets less than five years away, LR warns that orders must accelerate to meet proposed mandates for 5–10% of shipping energy consumption to come from new fuels. Regulatory pressures, such as FuelEU Maritime in European waters, are already compelling operators to transition to lower-emission fuels.
Table of Contents
The Multi-Fuel Leaderboard: LNG and Methanol Dominate
The breakdown of fuel types reveals a diversifying landscape:
| Fuel Type | Current Orderbook (Ships) | 2025 New Orders | Key Trends |
| LNG | 1,259 | 407 | Remains the top choice; favored by tankers and boxships. |
| Methanol | 385 | 134 | Strong uptake in the container segment; regulatory rules updated. |
| LPG | 139 | 24 | Primary use in gas carriers; potential for wider adoption. |
| Hydrogen | 53 | 13 | Momentum in passenger ferries and shallow-draft vessels. |
| Ammonia | 45 | 6 | Progressing via “Ammonia-Ready” designs and new safety AiPs. |
| Biofuel | 22 | 11 | Gaining ground as a practical “drop-in” solution for existing fleets. |
LNG Remains the Dominant Alternative Fuel
LNG maintained its position as the most widely adopted alternative fuel in 2025, with 407 LNG-capable vessels ordered. Container ships, tankers, and gas carriers continue to show strong demand due to LNG’s immediate carbon reduction benefits.
LR’s Fuel for Thought: LNG report highlighted two key challenges for sustaining LNG adoption: addressing methane slip and accelerating the development of bio-LNG and synthetic LNG to meet long-term decarbonisation goals.
Diversifying Alternative Fuel Options
Methanol remained popular, with 134 new orders in 2025. LR updated its Rules and Regulations for Ships Using Gases or Other Low-Flashpoint Fuels in July, aligning with the IMO IGF Code to strengthen safety standards for methanol as a marine fuel.
LPG saw 24 new orders, with potential for broader adoption beyond LPG carriers.
Ammonia continued to progress cautiously, with six new orders and further approvals-in-principle for ammonia-ready designs. Hydrogen also gained traction, with 13 hydrogen-capable vessels ordered, particularly passenger ferries and shallow-draft vessels, supported by LR’s updated guidance on fuel cell integration.
Biofuels showed growth, with 11 newbuild orders in 2025, up from eight in 2024. LR’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) reports increasing adoption of FAME-based blends such as B30 RF across ports including Singapore, Algeciras, and Antwerp. Initiatives like John H Whitaker Tankers vessel Whitchampion, the first bunker tanker certified to carry FAME B100, demonstrate biofuel’s practical, near-term role in emissions reduction.
Nuclear-powered shipping remains longer-term, but LR is exploring applications through AI-assisted permitting and licensing in partnership with Microsoft, and published the industry’s first guidance, Navigating Nuclear Energy in Maritime.
Retrofit Momentum Grows
LR’s Engine Retrofit Report 2025 highlighted the resurgence of LNG retrofits as shipowners seek immediate carbon reduction solutions. However, retrofit capacity, currently around 465 vessels per year across 16 yards, falls short of the projected 1,000 conversions annually required.
Hull optimisation and Energy-Saving Devices (ESDs) are increasingly common, with 28.5% of newbuilds adopting at least one ESD. High-efficiency propellers and rudder bulbs deliver fuel savings of 3–10% and 3.5% respectively. Wind-assisted propulsion (WAP) devices are also expanding, led by bulk carriers and tankers, with vessels like Brands Hatch, the world’s first newbuild Aframax tanker with WAPs, demonstrating fuel savings of 5–15%, sometimes up to 30%.
Market and Policy Dynamics
LR highlights that technological progress alone is insufficient. The Maritime Decarbonisation Hub, in partnership with EDF, identified a trillion-dollar financing gap that could hinder the energy transition. Workforce development also remains critical, as alternative fuels require new skills, operational frameworks, and safety protocols. LR contributed to the Maritime Just Transition Task Force, establishing industry-first training frameworks for seafarers and shore-based personnel.
Strategic Collaboration and Assurance
Regulatory pressures are mounting globally, from the IMO’s GHG strategy to FuelEU Maritime, EU ETS expansion, new emission control areas in the Mediterranean, and phased NOx/SOx limits in the Canadian Arctic. LR is actively collaborating with EXMAR and Belgian authorities to develop interim guidelines for ammonia cargo as fuel, as well as updating technical notations for hydrogen, ammonia fuel cells, and wind propulsion systems.
Strategic Collaboration and Assurance
Regulatory pressures are mounting globally, from the IMO’s GHG strategy to FuelEU Maritime, EU ETS expansion, new emission control areas in the Mediterranean, and phased NOx/SOx limits in the Canadian Arctic. LR is actively collaborating with EXMAR and Belgian authorities to develop interim guidelines for ammonia cargo as fuel, as well as updating technical notations for hydrogen, ammonia fuel cells, and wind propulsion systems.
Looking Ahead
The alternative fuel landscape is more diverse than ever, with no single solution emerging as a clear leader. Success will favor those who act decisively, adopt a portfolio approach, and respond dynamically to regulatory, technological, and supply chain changes. The next decade will belong to operators who not only adapt but lead, driving the shipping industry toward a resilient, sustainable, and low-carbon future.
About Lloyd’s Register – LR
Lloyd’s Register (LR) was founded in 1760 as a marine classification society and today stands as one of the world’s foremost professional services providers for engineering and technology. Operating in over 75 countries, LR is committed to enhancing the safety, sustainability, and performance of critical infrastructure worldwide. LR’s profits support the Lloyd’s Register Foundation, a global charity driving research, education, and public engagement in engineering and safety.
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Source Lloyd’s Register