March Sees Notable Rise in Methanol Orders for Alternative Fuel Ships Amid Broader Market Slowdown

In March 2025, the maritime sector continued its journey towards greener alternatives, with 25 new vessels ordered that incorporate choice fuel systems, as reported by DNV’s Alternative Fuels Insight (AFI) platform. Leading the pack was methanol, which snagged 12 orders across a variety of vessel types such as cruise ships and bulk carriers. Simultaneously occurring, LNG held strong in container shipping with seven new orders, and ammonia technology made its debut with two oil/chemical tanker orders.

However, it’s worth noting that the first quarter of 2025 saw a total of 71 alternative-fueled vessel orders—a drop of 13% from the same time last year. Experts suggest this decline is more about market conditions impacting new builds rather than waning interest in sustainable fuels.

Jason Stefanatos, DNV Maritime’s Global Decarbonization Director, shared an upbeat take on March’s results: “We’re seeing solid progress in our order book for alternative fuels—there’s plenty to be excited about.” He emphasized methanol’s widespread appeal: “It lead the charge this month after a quieter winter period. The diversity in segments—from cruise lines to tankers—shows that owners are keen on investing in this fuel.”

Ammonia is also starting to make waves as a potential marine fuel option. “While it still has hurdles to overcome before becoming mainstream,” Stefanatos remarked, “the groundwork is being laid for future advancements.”

Despite fewer orders compared to last year, industry insiders believe this trend reflects broader market dynamics rather than any decrease in enthusiasm for alternative fuels.

Stay updated on maritime trends! Subscribe to our newsletter and join over 108k members who trust us for daily insights!