In March 2025, the global shipping industry continued its efforts to embrace alternative fuel-powered vessels. According to data from DNV's (Det Norske Veritas) Alternative Fuels Insight (AFI) platform, 25 new ship orders featuring alternative fuel propulsion systems were placed that month, further confirming the shipping industry’s shift towards green and low-carbon transformation.

Among these, methanol-powered vessels emerged as the biggest winner, securing 12 orders across various vessel types, including cruise ships, car carriers, bulk carriers, and tankers. This indicates that methanol fuel is being accepted by shipowners in different market segments, with its market recognition steadily growing. Meanwhile, liquefied natural gas (LNG) remains dominant in the container shipping sector, with seven new orders placed, continuing its position as the mainstream fuel in this area. Additionally, ammonia fuel technology has made breakthroughs, with two new orders for tankers/chemical carriers, showing that the commercialization of this future fuel is progressing.

Although the order performance in March remained strong, the total number of alternative fuel vessels ordered in Q1 2025 reached 71, which is a 13% decrease compared to the same period in 2024. Industry experts analyzed that this decline in orders does not reflect a weakened interest in alternative fuels but is instead influenced by the overall sluggish newbuild market.

In response, Jason Stefanatos, DNV's Global Decarbonization Director, expressed an optimistic outlook. He noted, "The alternative fuel vessel orders in March remain robust, especially with the rise of methanol-powered ships, which not only lead in order volume but also span various vessel types. This indicates that the commercial appeal of methanol fuel is rapidly expanding."

At the same time, ammonia fuel applications have also attracted attention. Stefanatos stated, "Although ammonia fuel is still in its early development stages, the industry is actively preparing the infrastructure to lay the foundation for future applications."

Despite the year-on-year decline in alternative fuel vessel orders in Q1, industry experts generally believe that this trend reflects the overall slowdown in global newbuild orders, rather than a reduction in the market's interest in alternative fuels. From the current order structure, clean fuels such as methanol, LNG, and ammonia remain key directions for shipping decarbonization, and the maturation of related technologies and infrastructure development will further drive market growth.