The number of clean fuel-powered ships has increased significantly in recent years, and the global dual-fuel fleet now stands at 2,119 ships with a total capacity of 123 million gross tons.
According to data provided by Intermodal, environmentally friendly ships with dual-fuel engines now account for 7.4% of the global fleet’s gross tonnage, a significant increase from 3.2% in 2018.
It is understood that 84% of this alternative fuel tonnage is LNG dual-fuel ships, totaling 1,248 ships with a capacity of 102.93 million gross tons. In addition, the proportion of dual-fuel ships in the global order book has been steadily increasing, climbing from 16% in 2018 to 52% currently. The total dual-fuel orderbook now stands at 1,821 ships with a total capacity of 143 million gross tons; of these, there are 1,042 LNG dual-fuel ships with a total tonnage of 103.74 million gross tons.
The growth of the green fleet appears to be driven by the tightening regulatory environment and the significant financing opportunities presented by the Poseidon Principles framework. Launched five years ago, the Poseidon Principles are a global framework to help financial institutions assess and disclose the climate consistency of their shipping portfolios and promote decarbonization of the maritime industry. The guidelines aim to advance the financing of environmentally friendly ships and reduce carbon emissions from the shipping industry. The fifth annual disclosure report on the Poseidon Principles shows that 35 banks from 14 countries have signed up to the Principles, representing nearly 80% of the global ship finance portfolio.
The implementation of the Poseidon Principles is making progress in the global ship finance portfolio, reflecting a commitment to sustainable ship finance, although there are still challenges to be addressed,” said Nikos Tagoulis, Senior Analyst at Intermodal. While the green transformation of the shipping industry is gaining momentum, with an increasing share of environmentally friendly ships in the fleet and order book, fleet modernization has been hampered by a decline in ship recycling activities in recent years. The pace of fleet dismantling will be a key factor to watch in the coming year, as a potential increase in ship dismantling could boost ship modernization and further support the green transition.”