Green fuel shortages delay ship retrofitting, LR study warns

An expected flurry of green ship engine retrofits has been deferred by a lack of availability and affordability of green fuels, setting the stage for bottlenecks in ship repair yards, according to Lloyd’s Register’s latest study.

LR’s 2025 updated market analysis highlights that around 13,500 ships may require engine retrofits to comply with future emissions regulations. However, delays in scaling up alternative fuel availability could push back the transition timeline, increasing demand for retrofits within a shorter period.

While LNG and LPG conversions have dominated recent years, methanol retrofits are set to rise following container sector orders, and ammonia retrofits could expand once large-engine technology develops.

Currently, 27 shipyards – most of them in China – are equipped for retrofits, capable of handling 465 vessels annually. This falls short of the anticipated peak demand of over 1,000 conversions per year. Engine manufacturers also face constraints. MAN Energy Solutions, a key supplier, reports retrofit lead times exceeding 18 months, with efforts underway to cut this to 14 months.

Claudene Sharp-Patel, LR’s global technical director, warned that without clearer regulations and investment in fuel supply chains, shipowners could face rising compliance costs and uncertainty. “The technology and shipyard capacity to retrofit vessels is improving, but without decisive action to scale up alternative fuel supply chains, shipowners will face increasing compliance costs and operational uncertainty,” she said. “We need greater regulatory clarity and investment to bridge the gap between ambition and action.”