Alternative Fuels in Shipping: Pathways to a Greener Maritime Future

Explore alternative fuels in shipping — ammonia, methanol, hydrogen, LNG — for a greener maritime future.

4th Eng. Rohan Tyagi
October 8, 2025
7 min read

Introduction

As the world pushes to limit carbon emissions, the shipping industry faces its share of pressure. Traditional marine fuels produce heavy greenhouse gases, so the industry is exploring alternative fuels in shipping to reduce carbon footprints. This article walks you through the options, challenges, and future direction of maritime green fuels, based on the insights and research.

Why Change Matters: Emissions & Regulations

Carbon Footprint of Shipping

Marine transport contributes significantly to global CO₂ emissions. Using heavy fuel oil (HFO) and marine gas oil (MGO) still dominates many vessels, but their high emissions cannot be ignored.

To meet global climate goals, the International Maritime Organization (IMO) has set targets such as cutting greenhouse gas (GHG) emissions from international shipping by at least 50% by 2050 (compared with 2008 levels). 

Regulations are catching up: the upcoming IMO Net-Zero Framework (starting around 2028) will put a price on emissions and push ships toward lower-carbon fuels. 

Thus, the shift to alternative fuels shipping is not just optional, it’s becoming essential.

What Are the Alternative Fuel Options?

1. Liquefied Natural Gas (LNG)

  • LNG is already one of the more mature alternatives.
  • It emits less CO₂ than traditional heavy fuels (on a “tank to propeller” basis), though there is a catch: methane slip (unburned methane escaping) can offset some gains.
  • Many ports now have (or are building) LNG bunkering infrastructure, which helps make it viable in the near term.
  • But LNG is still a fossil fuel not carbon-free. Also, infrastructure cost, cryogenic storage, and safety issues remain hurdles.

2. Methanol

  • Methanol (especially green methanol) is getting strong attention
  • It can be used in dual-fuel engines (i.e. existing ships can be retrofitted with some modifications).
  • When derived from renewable sources (CO₂ + hydrogen), methanol’s lifecycle emissions are much lower.
  • Challenges include limited supply of “green methanol,” cost, and handling safety (flammability, toxicity concerns).
Seafarers.in

3. Ammonia

  • Ammonia is one of the most promising zero-carbon fuel candidates (when produced via renewable energy).
  • It contains no carbon in its molecule, so combustion (if perfect) doesn’t release CO₂
  • It can also be stored more compactly than pure hydrogen.
  • But it does have drawbacks: it is toxic, handling and safety systems need very strict controls. Also, NOₓ emissions may result if not managed well.
  • Currently, engine and fuel handling technology is still under development. 

4. Hydrogen

  • Hydrogen (especially green hydrogen) is clean  burning hydrogen that produces water vapor.
  • But its storage is a big challenge: to store energy, hydrogen either must be compressed or liquefied (very low temperatures) or combined into carriers.
  • Fuel cells (rather than combustion) are often proposed for hydrogen-powered ships, but maturity and scale are still being worked out.

5. Biofuels & Synthetic Fuels

  • These include hydrotreated vegetable oil (HVO), upgraded bio-oil, Fischer–Tropsch diesel (FTD), synthetic methane, etc.
  • They can often act as drop-in fuels (i.e. used in existing engines with minimal changes) depending on the type.
  • Their downside is limited sustainable feedstock, competing demand (food, land use), and cost.

Comparing the Options: Strengths & Weaknesses

It’s not enough to list fuels; we must compare them on technical, environmental, safety, and economic grounds. Research literature gives us a more holistic evaluation.

Emissions & Lifecycle Impact

  • Some analyses find LNG + MGO mix as among the most viable short-term paths, but caution about methane emissions.
  • In the longer term, synthetic methanol and “e-fuels” (renewables → hydrogen + CO₂ → fuel) show promise.
  • For many alternative fuels, emissions during production (well-to-tank) are sometimes ignored in simple comparisons — that can skew results.

Technical Readiness

  • LNG is already viable and in use.
  • Methanol and ammonia are being piloted.
  • Hydrogen, biofuels, and synthetic fuels vary in maturity.
  • Some fuels require new engine types or fuel systems; others can retrofit existing ones.

Storage & Infrastructure

  • LNG needs cryogenic storage.
  • Hydrogen needs extremely high pressure or very cold temperatures.
  • Ammonia and methanol are liquids at moderate conditions (though toxic or flammable).
  • Bunkering infrastructure (ports, pipelines, safety systems) is a huge factor.

Cost & Economics

  • Many alternative fuels are significantly more expensive than traditional fuels today.
  • Capital investment in new or retrofitted ships is high.
  • Economic models suggest that ships using more expensive fuels may need to reduce sailing speed (slow steaming) to balance costs.
  • Without regulatory incentives (carbon pricing, subsidies), traditional fuels might remain dominant despite their environmental costs.

Safety & Environmental Risks

  • Ammonia is toxic and corrosive; spills or leaks are dangerous.
  • Hydrogen is highly flammable.
  • Methanol is toxic and flammable.
  • LNG has issues with boil-off, cryogenics, and methane slip.
  • Regulations and international legal frameworks may lag behind technology, leaving gray zones in liability, safety, and environmental law.

Also Read: How a Misdeclared Container Caused Fire: Lessons from a Real Case

  • Ship orders using alternative fuels are growing. In 2024, orders for alternative-fuel ships increased by ~50%.
  • But fleet share is still small; only a few percent of global vessels are alternative-fuel capable today.
  • Many industry executives expect faster uptake after 2030, driven by regulatory pressure and scale of fuel production.
  • Regions rich in renewable energy may become hubs for producing zero-carbon fuels (e.g. green ammonia, e-methanol).
  • Policy tools matter: carbon pricing, subsidies, mandates, and infrastructure investment will push or slow change.

What the Rife Consultancy Article Highlights

Rife Consultancy’s article emphasizes three key fuels — ammonia, hydrogen, and methanol as “clear winners” for the future. Some of its specific points:

  • DNV GL also sees LNG, LPG, methanol, biofuels, and hydrogen as viable alternatives.
  • LNG sees advantage in existing infrastructure, but methane slip is a concern. 
  • Ammonia and hydrogen are considered “zero-carbon bunker fuels.”
  • Methanol is attractive because of easier engine conversion compared to other fuels.
  • Rife also flags safety and certification concerns: fuels like ammonia require industrial standards for handling crew safety.
  • Rife suggests that combining fuel flexibility (dual-fuel ships) and building infrastructure will ease transition.
How a Misdeclared Container Caused Fire

What Students & Professionals Should Focus On

  1. Understand fuel chemistry & properties
    Know density, energy per kg, volatility, toxicity, storage conditions.
  2. Engine types & retrofitting
    Learn how dual-fuel engines work, how retrofits are done, tradeoffs.
  3. Regulation & policy
    Dive into IMO rules, national policies, carbon pricing systems (e.g. IMO Net-Zero).
  4. Safety, emergency procedures, risk analysis
    Handling of ammonia, hydrogen leaks, crash scenarios  these must be mastered.
  5. Economic modeling & tradeoffs
    Simulate cost vs fuel price vs speed tradeoffs.
  6. Infrastructure & supply chain
    Bunkering systems, storage facilities, port readiness not just ship-level changes.
  7. Stay current with experiments & pilot projects
    Watch happenings like ammonia-fueled vessel trials, hydrogen ships, scale-up of green methanol plants.

Challenges Ahead & What May Tip the Balance

  • Cost gap: Until alternative fuels become cheaper or carbon costs push traditional fuel up, adoption will be slow.
  • Supply & scale: Producing enough green fuel (e.g. green hydrogen, ammonia) requires huge renewable energy capacity.
  • Infrastructure rollout: Ports must upgrade bunkering, storage, safety systems — costly and time-consuming.
  • Regulation lag: Legal standards, safety codes, liability rules must catch up.
  • Stranded assets risk: Ships or infrastructure built now might become obsolete if a particular fuel becomes dominant.

A tipping point may arrive when carbon pricing makes traditional fuels too expensive, or when alternative fuel supply and infrastructure reach critical mass.

Conclusion

“Alternative fuels in shipping” is not just a buzz phrase, it’s the backbone of how maritime transport might decarbonize over the coming decades. Among the contenders, LNG offers a near-term bridge; methanol and ammonia look like star candidates for the mid to long term; hydrogen and bio/synthetic fuels play roles depending on context.

The path won’t be linear. Success will depend on coordination across shipowners, engine makers, fuel producers, regulators, and ports. But for students, future marine officers or professionals, mastering this topic now gives you a front-row view of where shipping is heading.

4th Eng. Rohan Tyagi

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