Although orders for alternative-fuel vessels continue to decline, the global shipping industry’s green transition remains unchanged. The decarbonization of the global fleet is gradually shifting from an LNG‑only fuel pathway to a phase of diversified technological competition, with Chinese shipyards continuing to play a pivotal role.
According to Clarkson’s latest statistics, from January to June this year, among a total of 1,481 new ship orders worldwide amounting to 89.6 million gross tons, as many as 296 vessels totaling 22.6 million GT were powered by alternative fuels, accounting for 25.2%—down from last year’s full-year share of 35.4%. In terms of order value, global investment in newbuildings from January to June reached US$132.6 billion, with alternative-fuel vessel orders valued at US$44.3 billion (approximately RMB 299.995 billion), a 1% year-on-year decline, yet still representing 33.4% of the total.
This year’s orders for alternative-fuel vessels include 173 LNG‑powered ships totaling 18.2 million GT, 6 methanol‑powered ships with 600,000 GT, 54 LPG‑powered ships amounting to 2.7 million GT, 7 ethane‑powered ships carrying 400,000 GT, and 63 battery‑ or hybrid‑propulsion vessels totaling 1.4 million GT.
In recent years, the share of alternative-fuel vessels in global newbuilding orders has shown a rapid upward trend, rising from 8.2% in 2016 to 32.1% in 2021 and reaching a record high of 55.1% in 2022. Since then, as market conditions have adjusted, this share has gradually declined to 42.1% in 2023, 43.5% in 2024, and 35.4% in 2025, before falling further to 25.2% in the first half of this year.
As for shipbuilding countries, Clarkson’s data show that, as of June 2026, the vast majority of newbuild orders for alternative-fuel vessels have been placed with Chinese shipyards, totaling 17 ships amounting to 651,000 CGT. By CGT, this accounts for 67% of all alternative-fuel newbuild orders scheduled for June 2026, placing China first globally in order intake. Specifically, these include 12 LNG‑dual‑fuel vessels totaling 523,000 CGT, 1 LPG‑powered vessel of 30,000 CGT, and 4 battery‑ or hybrid‑propulsion vessels totaling 98,000 CGT.
Meanwhile, in June, South Korean shipyards secured a total of seven newbuild orders for alternative-fuel vessels, amounting to 321,000 CGT and capturing a 33% market share. These included two LNG‑dual‑fuel ships totaling 171,000 CGT and five LPG‑powered vessels totaling 149,000 CGT.
According to Clarkson’s data, overall, the share of vessels in the operating fleet capable of using alternative fuels or propulsion systems has risen to 10.2% by tonnage, up from 2.9% at the beginning of 2018 and 7.7% at the beginning of 2025. Among the current total of 3,074 alternative-fuel‑powered ships, there are 1,665 LNG‑powered vessels, 163 methanol‑powered vessels, 172 LPG‑powered vessels, and 927 battery‑ or hybrid‑propulsion vessels, with an additional 331 vessels powered by other fuels.
Meanwhile, among the orderbook, alternative-fuel vessels account for 42.1%, up from 14.1% at the beginning of 2018 but down from 49.7% at the start of 2025. By tonnage, 31.4% of the orderbook consists of LNG‑powered ships (1,108 vessels), 6.4% are methanol‑powered (273 vessels), and 1.9% are LPG‑powered (168 vessels). In addition, approximately 2.4% (around 583 vessels) use other alternative fuels, including 48 hydrogen‑fuelled, 52 ethane‑fuelled, 46 ammonia‑fuelled, and 554 battery‑ or hybrid‑propulsion vessels, bringing the total number of alternative‑fuel vessels on order to 2,132.
As the range of future fuel options continues to expand, the number of vessels designated as “LNG-ready” is also steadily increasing. Currently, 723 ships in the operating fleet are LNG-ready, with an additional 313 on order; meanwhile, the order book includes 331 ammonia-ready vessels, 850 methanol-ready vessels, and 17 hydrogen-ready vessels.
Meanwhile, the latest statistics from DNV’s Alternative Fuel Insights (AFI) data platform show that in June this year, global new ship orders for alternative-fuel vessels totaled 15, including 10 LNG‑dual‑fuel ships—nine car carriers and one CO₂ carrier—and five LPG/ethane carriers. During the same period, two additional LNG bunkering vessel orders were placed, bringing the total number of LNG bunkering vessel orders so far this year to seven.
DNV data show that in the first half of 2026, total orders for alternative-fuel vessels reached 137, down from 155 in the same period last year. Among these, LNG remains the dominant alternative fuel, with cumulative orders totaling 73, primarily concentrated in container ships (42) and car carriers (21). LPG/ethane‑powered vessels numbered 55, a substantial increase from 15 in the same period last year. By contrast, order activity for other fuel types remains relatively limited, with 4 methanol/ethanol‑powered vessels, 4 ammonia‑powered vessels, and 1 hydrogen‑powered vessel.
Since the beginning of this year, 61 LNG‑powered vessels and 38 methanol‑powered vessels have been delivered worldwide. In addition, South Korea’s HD Hyundai Heavy Industries recently completed delivery of the world’s first ocean‑going dual‑fuel vessel powered by ammonia, built for Exmar, marking another significant step forward in the commercial deployment of next‑generation alternative fuel technologies.
Jason Stefanatos, DNV’s Global Director of Decarbonization, stated that in the first half of 2026, the alternative‑fuel vessel market will exhibit a pronounced divergence, with the pace of adoption across different fuel pathways shaped by a confluence of factors, including economics, fuel‑supply availability, and regulatory policies. In the short term, LNG remains shipowners’ preferred alternative fuel, with container ships and car carriers continuing to lead the market; meanwhile, LPG‑ and ethane‑powered vessels are expanding rapidly, while emerging technologies such as ammonia and ethanol are also gaining traction. As a result, the global shipping industry is gradually evolving toward a decarbonization landscape characterized by parallel development along multiple pathways.
