As global demand in the new shipbuilding market slows overall, shipowners are adopting a more cautious approach toward investing in green vessels, leading to a noticeable deceleration in the pace of new orders for alternative-fuel ships.
According to the latest statistics from Clarksons, out of a total of 1,392 new ship orders totaling 64.6 million gross tons from January to October this year, 359 ships totaling 31.4 million gross tons were alternative-fuel vessels, accounting for 43%—lower than the 45% recorded for the full year of last year. In terms of order value, the total global investment in new shipbuilding from January to October this year amounted to $122.5 billion, with orders for alternative-fuel ships valued at $58.2 billion (approximately RMB 411.7 billion), a decrease of 39% year-on-year, representing 47.5% of the total.
New orders for alternative-fuel ships this year include 175 LNG-powered vessels (23.4 million gross tons), 57 methanol-powered vessels (6.2 million gross tons), 17 LPG-powered vessels (700,000 gross tons), 4 ethane-powered vessels (100,000 gross tons), and 112 battery/hybrid-powered vessels (1.5 million gross tons).
In recent years, the proportion of alternative-fuel ships in new orders has been steadily increasing, rising from just 8.2% in 2016 to 32% in 2021, and reaching an all-time high of 54.8% in 2022. After dipping to 41% in 2023, the proportion rebounded to 45% in 2024.
In terms of shipbuilding countries, Clarksons data shows that as of October 2025, all new orders for alternative-fuel ships were secured by Chinese shipyards, totaling 10 ships and 183,400 CGT. These include 5 LNG dual-fuel ships (104,100 CGT), 3 methanol dual-fuel ships (64,000 CGT), and 2 battery/hybrid-powered ships (15,400 CGT).
According to Clarksons data, overall, in terms of tonnage, the proportion of ships in the operational fleet capable of using alternative fuels or propulsion systems has now increased to 9.1%, up from 2.6% in 2017 and 6.5% at the beginning of 2024. Among the total of 2,659 alternative-fuel ships in operation, 1,515 are LNG-powered, 87 are methanol-powered, 148 are LPG-powered, and 773 are battery/hybrid-powered, with an additional 296 ships using other fuels.
Meanwhile, alternative-fuel vessels account for as much as 50.0% of the current order backlog, rising from 11.4% in 2017 and 48.8% at the beginning of 2024. By tonnage, 35.6% of the backlog consists of LNG-powered ships (992 vessels), followed by 9.5% for methanol-powered ships (332 vessels) and 1.9% for LPG-powered ships (139 vessels). Additionally, approximately 2.9% (about 539 vessels) use other alternative fuels, including 36 hydrogen-fueled, 57 ethane-fueled, 43 ammonia-fueled, 21 biofueled, and 517 battery/hybrid-powered vessels. In total, the order backlog for alternative-fuel ships stands at 2,002 vessels.
As the range of future fuel choices continues to expand, the number of ships ordered with alternative fuel readiness is also steadily increasing. Currently, there are 617 LNG-ready ships in the operational fleet, with an additional 234 in the order backlog. Meanwhile, the order backlog includes 311 ammonia-ready ships, 746 methanol-ready ships, and 19 hydrogen-ready ships.
Simultaneously, the latest statistics from DNV's Alternative Fuels Insight (AFI) platform indicate that there were 30 new orders for alternative-fuel ships in October this year. Among these, 26 were LNG-powered container ships, with the remaining 4 being methanol-powered vessels, three of which are tankers.
In the first ten months of 2025, new orders for alternative-fuel ships reached 222. Among these, 147 were LNG-powered vessels, accounting for approximately 67%, followed by 47 methanol-fueled ships. The remaining orders included 19 LPG-fueled LPG carriers, 5 ammonia-fueled ships, and 4 hydrogen-fueled ships. Container ships constituted 65% of the total orders for alternative-fuel vessels in 2025.
DNV pointed out that although new orders for alternative-fuel ships have fallen by 52% compared to the same period in 2024, this is primarily attributed to the overall weakness in the new shipbuilding market rather than a decline in interest for alternative-fuel vessels. At the same time, industry investment in alternative fuel infrastructure continues to advance, with October's new orders including 4 new LNG bunkering vessels and 2 methanol bunkering vessels.
Jason Stefanatos, Global Decarbonization Director at DNV Maritime, stated: "It is encouraging that, despite ongoing regulatory uncertainties, the shipping industry's transition towards cleaner fuels remains steady. These new orders demonstrate that the maritime sector's momentum in shifting towards low-emission shipping solutions remains strong."
