The global low-carbon marine fuels market

The global low-carbon marine fuels market 

The global low-carbon marine fuels market will look to further state incentives aimed at driving long-term adoption of low-carbon marine fuels, while in the near term, market participants continued to grapple with high sustainability premiums and a lack of prompt supply.

Hong Kong launches scheme to promote green bunkering

Hong Kong’s Marine Department has launched the Green Maritime Fuel Bunkering Incentive Scheme, the department said in a statement June 30, to facilitate Hong Kong's development into a low-carbon bunkering hub.

Under the current tranche, which targets LNG and green methanol, an incentive of HK$500,000 ($63,695) will be granted to companies for each of its first two LNG or green methanol bunkering operations completed within one year from the Marine Department’s acceptance of its risk assessment, the department said.

H2Global German hydrogen import auction opens

Hintco, a company managing the H2Global hydrogen and derivative import auction scheme to Europe, has opened regional tender lots for renewable ammonia, methanol and hydrogen for delivery to Germany July 4, with a price cap of Eur353/MWh ($416/MWh).

Platts, part of S&P Global Commodity Insights, assessed the cost of grid-based hydrogen production via alkaline electrolysis in Northwest Europe at Eur149/MWh (the Netherlands, including capital expenditures) July 3.

Projects have until Sept. 12 to submit initial applications requesting participation.

LNG retains top position in alternative-fueled newbuilds

Larger ships running on LCMF were ordered in the first half of 2025 despite a slowdown in newbuild ordering, underlined by container lines’ appetite for LNG propulsion, while an emerging few bet on ammonia.

Data from classification society DNV shows 151 alternative-fueled vessels were contracted in the six-month period, down from 179 in the same period of 2024.

However, this year’s orders totaled 19.8 million gross tons, up 78% from a year earlier.

“The data reflects a sector that is actively recalibrating,” DNV’s global decarbonization director, Jason Stefanatos, said in a statement July 1. “We’re not seeing a slowdown in ambition, but rather a more measured approach to investment.”

LNG remains the dominant alternative fuel choice with 87 ships ordered, totaling 14.2 million gross tons in the first half of 2025.

The container segment accounts for the majority of these orders, with 13.6 million gross tons across 81 ships.

Separately, 40 methanol-capable ships with 4.6 million gross tons were ordered across multiple segments, including container, ro-pax, tanker, offshore and car carrier.

Three ammonia-fueled vessels were added to the order book, primarily in the tanker and general cargo segments, totaling 37,000 gross tons.

Singapore biobunkers see higher spot demand across sulfur grades

The Singapore biobunkers market saw increased spot demand for both low- and high-sulfur grades in the week to July 3. However, low sulfur biobunker premium levels were under pressure amid competitive offers in the spot market.

Biobunkers demand in Singapore is anticipated to grow in the second half of 2025, as compliance reporting deadlines approach, but the rise is expected to be less pronounced than 2024, according to market sources.

Demand appears more distributed in 2025, with shipowners changing biobunker procurement strategies to lift volumes earlier in the year.

“Shipowners have learnt from last year," a trader said. "They want to avoid the additional premiums for prompt deliveries that they paid when rushing to fix spot stems in Q4 last year."

In the Middle East, biobunkers demand remained sporadic, with only small volumes of 300-400 mt inquired each time from a limited pool of buyers.