The shipping industry is facing a "quiet retreat" from its aggressive pursuit of alternative marine fuels, with new orders for non-LNG green fuels significantly dropping in 2025. Methanol orders fell from 149 vessels in 2024 to 61 in 2025, and ammonia orders only totaled 5 vessels. In contrast, LNG, considered a transition fuel, captured approximately 80% of all alternative-fuel new orders in 2025, up from 75% the previous year. The overall alternative-fuel order book contracted by 47% year-over-year, indicating a broad reassessment of deployment timelines for decarbonization.
Several factors explain this shift. First, the infrastructure for green fuels is severely lacking; LNG bunkering is available at 222 ports, while methanol is available or planned at only 48, and ammonia bunkering is virtually non-existent. Second, operational issues, such as engine reliability problems experienced by Maersk with its methanol dual-fuel fleet, have led many vessels to run on "grey methanol" (fossil-derived methanol) or conventional fuels. The high cost of green methanol without policy intervention also makes it economically unviable for many shipowners.
Shipowners are increasingly opting for LNG as a "default hedge under uncertainty" due to its fewer immediate operational risks and broader future flexibility. The development of bio-LNG and e-LNG offers a credible path toward genuinely low-carbon operation for LNG dual-fuel ships without engine modification. Additionally, around 20% of vessel tonnage ordered in 2025 was classified as "alternative-fuel-ready," indicating a desire for optionality rather than a commitment to a specific alternative fuel. This behavior suggests that the market is not abandoning alternative fuels entirely, but rather rescheduling their widespread deployment to the early-to-mid 2030s.
While the article does not extensively cover nuclear power in shipping, it mentions that the International Maritime Organization (IMO) updated rules for civilian nuclear vessels in June 2025, and there's a discussion about a nuclear revival in shipping fueled by advances in next-generation reactors. However, significant challenges remain, including legal aspects, safety concerns regarding waste, and the lack of a viable business case for commercial nuclear ships outside of government-absorbed costs for military vessels. Large shipping companies like MSC, CMA CGM, and Maersk have not publicly committed to nuclear propulsion, highlighting its unproven and politically charged nature for commercial use.
