Alternative Marine Fuels in 2026:
What's Actually Scaling

For several years, methanol and ammonia dominated the conversation about shipping's fuel future. In 2026, the data tells a more grounded story: LNG remains the dominant alternative fuel choice by a wide margin, while methanol and ammonia newbuild orders have slowed sharply, largely due to uncertainty around the IMO's Net-Zero Framework and its carbon-pricing mechanism.

1. The 2026 Orderbook Reality

According to industry tracking of newbuild orders in the first half of 2026, owners placed contracts for 73 LNG-capable vessels and 55 LPG-powered ships, compared with just four methanol/ethanol-powered ships, four ammonia-capable vessels, and one hydrogen-fuelled newbuild across the same period. In June 2026 alone, no new methanol, ammonia, or hydrogen contracts were signed at all.

2. Why Methanol and Ammonia Have Slowed

Owners have not lost interest in cleaner fuels — they have "pumped the brakes" while waiting for regulatory clarity. The repeated delays to the IMO's Net-Zero Framework (see our related article on carbon pricing) mean shipowners cannot yet fully price the commercial advantage of investing in more expensive, less proven fuel systems. Until the framework — and its carbon price — is formally adopted, LNG remains the safer bet: it has the broadest bunkering infrastructure, the most mature technology, and the largest existing orderbook.

3. Fuel-by-Fuel Snapshot

• LNG — most mature alternative fuel, widest bunkering network, but faces tightening scrutiny over methane slip under frameworks like the EU's FuelEU Maritime.
• Methanol — simpler to retrofit and handle on board than ammonia; retrofits typically cost 10–16% of a newbuild's value; considered the most practical near-term option for shorter, regional routes.
• Ammonia — the leading long-term candidate for deep-sea decarbonisation, with up to 90% lifecycle GHG reduction when produced from renewable hydrogen, but retrofits cost more (19–24% of newbuild value) and the technology is still less proven; the first ammonia-fuelled ocean-going ship only entered service in 2026.
• Hydrogen — furthest from commercial scale, held back by cryogenic storage infrastructure requirements.
• Wind-assisted propulsion — a complementary, lower-profile trend: more than 100 large commercial ships now use wind-assist technology, mostly tankers and bulk carriers.

4. What Maritime Professionals Should Track

• Retrofit vs. newbuild economics — for existing fleets, retrofitting is increasingly seen as at least as important as new construction for reaching decarbonisation targets.
• Bunkering infrastructure growth — fuel choice is as much about where you can bunker as which engine you install.
• Crew training — handling methanol and ammonia safely requires specialised STCW-aligned training that differs meaningfully from conventional fuel operations.
• Regulatory timing — final decisions on the IMO Net-Zero Framework, expected around December 2026, will likely determine how quickly methanol and ammonia orders recover.

5. Frequently Asked Questions

Sources: DNV Alternative Fuels Insight, Riviera Maritime Media, ABS. This article is for general information and does not constitute technical or investment advice.