Alternative Fuels in Shipping: LNG, Hydrogen, Methanol & Batteries Explained

My name is Davide Ramponi, I’m 20 years old, and currently training as a shipping agent in Hamburg. On my blog, I take you with me into the fascinating world of shipping. I share what I learn, what I experience, and how I grow on my way to becoming an expert in Sale and Purchase—the global trade with ships.

If you follow developments in the maritime world, one topic keeps surfacing: decarbonisation. With increasingly strict regulations, environmental pressure, and the push for a greener industry, shipowners today must think beyond traditional fuels. The search for viable, sustainable propulsion alternatives has led to growing interest in fuels like LNG, hydrogen, methanol, and battery technology.

But what do these alternative fuels really offer? How do they compare in terms of performance, cost, availability, and environmental impact? And what should shipowners consider when choosing the right solution?

In this blog post, I’ll walk you through the most relevant alternative fuels in shipping, explain the pros and cons of each option, look at real-world examples of ships already using them, and offer practical advice for shipowners planning for a cleaner, more efficient future. Let’s explore what’s already sailing—and what’s on the horizon.

Overview of the Main Alternative Fuels

The shipping industry is currently exploring four key alternatives to conventional marine fuels:

1. LNG (Liquefied Natural Gas)

LNG is the most established alternative fuel in commercial shipping today. It’s a fossil fuel, but significantly cleaner than traditional heavy fuel oil (HFO), offering notable emission reductions.

2. Hydrogen

Hydrogen is a zero-emission fuel when used in fuel cells, producing only water as a by-product. It’s considered a long-term solution for deep decarbonisation, especially if generated from renewable sources.

3. Methanol

Methanol is a liquid fuel that can be produced from both fossil and renewable sources. It's easy to handle and is gaining traction as a practical drop-in fuel for vessels with modest retrofitting needs.

4. Batteries and Electric Propulsion

Battery-powered ships use electric motors for propulsion, ideal for short-sea routes or ferries. These systems rely on shore-side charging and are gaining attention for their simplicity and zero-emission operation at sea.

Pros and Cons of Each Fuel Type

Each alternative fuel comes with its own set of advantages—and limitations. Let’s break them down.

LNG: The Transitional Solution

Pros:

• Reduces SOx by ~100%, NOx by ~85%, and CO₂ by ~20%.

• Available at over 100 bunkering ports worldwide.

• Backed by mature engine and supply technology.

Cons:

• Still a fossil fuel, so not fully carbon-neutral.

• Methane slip (unburned methane emissions) can reduce environmental gains.

• Infrastructure expansion is ongoing but still limited in some regions.

Hydrogen: The Zero-Emission Promise

Pros:

• No carbon emissions when used in fuel cells.

• Ideal for long-term IMO 2050 targets (net-zero GHG).

• Can be produced from renewable energy (“green hydrogen”).

Cons:

• High production and storage costs.

• Limited infrastructure and bunkering options.

• Large fuel volume required—challenging for space on board.

Methanol: Simple and Scalable

Pros:

• Liquid at ambient conditions—easy storage and handling.

• Can be produced renewably (bio-methanol, e-methanol).

• Relatively straightforward retrofits for existing ships.

Cons:

• Lower energy density than LNG or traditional fuels.

• Currently derived mostly from fossil sources.

• Global bunkering infrastructure still developing.

Batteries: Efficient, but Limited in Range

Pros:

• Zero emissions during operation.

• Quiet and low-maintenance.

• Ideal for ferries, inland shipping, and port operations.

Cons:

• Limited range and energy density.

• Requires robust shore-side power infrastructure.

• Battery production has its own environmental footprint.

Economic Aspects: Cost, Availability & Infrastructure

Besides emissions and performance, shipowners must consider cost, fuel availability, and supporting infrastructure.

Fuel Cost & Price Volatility

• LNG is currently more expensive than traditional fuels but offers long-term savings through efficiency and regulatory compliance.

• Hydrogen remains costly—especially green hydrogen—but prices are expected to fall with scaled-up production.

• Methanol is gaining competitiveness, especially in regions investing in green methanol production.

• Battery-electric propulsion has high upfront costs but low operational expenses, especially with renewable electricity.

Infrastructure and Supply Chain

• LNG has the most developed alternative fuel infrastructure, with dedicated bunkering ports and delivery systems in place.

• Hydrogen lacks widespread infrastructure, but pilot projects and government initiatives are rapidly growing.

• Methanol infrastructure is expanding, especially in Scandinavia and the EU.

• Battery systems rely on access to renewable electricity and shore-side charging infrastructure—often limited to specific ports.

Real-World Examples of Ships Using These Technologies

Several pioneering vessels already operate with alternative fuels, offering valuable insight into their practical viability.

LNG

• CMA CGM’s Jacques Saadé-class ultra-large container vessels are LNG-powered, demonstrating large-scale adoption and performance reliability.

• Carnival’s AIDAnova is among the first cruise ships powered entirely by LNG.

Hydrogen

• Hydroville by CMB is the world’s first certified passenger shuttle that uses hydrogen.

• Norled’s MF Hydra is the world’s first hydrogen-powered ferry, operating in Norway since 2021.

Methanol

• Stena Line’s Stena Germanica became the world’s first ferry to operate on methanol in 2015, converted with minimal retrofit effort.

• Maersk is launching a series of methanol-powered container vessels, with the first expected to enter service in 2024.

Batteries

• Ampere, a fully battery-electric ferry, operates in Norway and saves over one million liters of diesel annually.

• Ellen, another all-electric ferry in Denmark, showcases the feasibility of emission-free short-sea travel.

Tips for Shipowners: How to Choose the Right Fuel

With so many options and variables, choosing the right alternative fuel can be challenging. Here’s how to approach the decision strategically:

1. Know Your Operating Profile

Consider route length, port calls, regional infrastructure, and fuel availability. For example, battery-electric might be perfect for a 2-hour ferry route, but impractical for a transatlantic cargo ship.

2. Evaluate Retrofit vs. Newbuild

Some fuels, like methanol, are easier to retrofit onto existing ships, while others (hydrogen, batteries) often require new designs. Assess your fleet's age and condition before investing.

3. Monitor Regulatory Developments

Environmental regulations such as CII, EEXI, and EU ETS are evolving rapidly. Choose fuels that align with upcoming compliance needs to future-proof your investments.

4. Consider Total Cost of Ownership

Look beyond fuel price—consider maintenance, training, emissions-related savings, and long-term economic and environmental performance.

5. Collaborate with Classification Societies & Tech Partners

Leverage expertise from engine manufacturers, technology providers, and classification societies to ensure smooth implementation, safety, and certification.

Conclusion: Navigating the Fuel Transition with Confidence

The path toward sustainable shipping is not a one-size-fits-all journey. LNG, hydrogen, methanol, and batteries each offer promising solutions, but the right choice depends on your ship type, trade routes, and strategic goals.

With careful planning, industry collaboration, and a willingness to innovate, shipowners can navigate this transition successfully—reducing emissions, improving efficiency, and staying ahead in a market that increasingly values environmental responsibility.

Are you already exploring alternative fuels for your fleet, or have questions about the options? I’d love to hear your thoughts and experiences. Share them in the comments—I look forward to the exchange!

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