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Shape to a more sustainable shipping: shift to Alternative fuels?

14.04.22
Something seems to be changing in the shipping industry. According to some
recently published data, in the first quarter of 2022 only, a record share of 61% of
new buildings ordered used alternative fuels. To compare, 2021 saw 32.7% of
newbuild using alternatively-fuelled vessels, whereas in 2020 the number was
somewhere around 20% ?

Breaking down percentages, we discover that most of them are LNG fuelled, mainly
through methanol (0.6%), ethane (0.6%) or battery hybrid propulsion (0.7%). A
further 12% were instead ammonia ready, LNG ready (1.4%) or hydrogen ready
(0.1%).

According to some projections, by the start of next year up to 5% of the global fleet
capacity will be fuelled by alternative means. It would be a significant increase for
such a short time span, seeing that the current data suggest that, to this date, 4.5%
of the merchant fleet on a global level uses alternative fuels. The percentage rise to
almost 38% by looking at the order book. Moreover, it may be interesting to notice
that 23% of global tonnage is scrubber fitted.

All of these data seem to confirm a shift of tendency in the shipping industry. This
proves to be urgent more now than ever since, with the passing of the CII (Carbon
Intensity Indicator) legislation in the near future, almost 30% of today’s fleets would
be rated as class D or E. The number would be likely to rise to 40% the following
year. The shipping business, therefore, proves to be able, once again, to adjust to
the current trends, playing a big part in shaping a more sustainable future.