The future of engine retrofits will depend heavily on regulatory developments says Lloyd’s Register in its latest Engine Retrofit Report.
LR added the longer conventionally fuelled vessels remain in service, the greater the pressure will be to retrofit them later to meet emissions targets, potentially compressing demand into a narrower and more costly timeframe.
The 2026 update shows that 2025 delivered limited growth in announced retrofit projects, but significant progress in capability.
A small number of high-profile conversions, including a successful methanol retrofit of a large two-stroke engine on the container vessel COSCO Shipping Libra, demonstrate that methanol conversions are technically viable at the deep-sea end of the market and moving towards repeatable solutions.
Maersk’s operator trials showed that Brazilian ethanol can be blended with methanol and marine diesel without affecting engine performance, allowing for higher ethanol mixes. OEM announcements throughout the year further strengthened the case for ethanol. Everllence reported success on all load points with both two-stroke and four-stroke engines, and WinGD announced an ethanol-fuelled two-stroke engine roadmap with retrofit applicability.
The similarity between methanol and ethanol means that future methanol engines should be capable of using ethanol, while existing methanol engines could be converted relatively easily.
Looking ahead, LR said the trajectory of the retrofit market will depend heavily on regulatory developments, particularly any progress on a global framework to incentivise zero- and near-zero emission fuels.
Mark Penfold, Global Head of Technology – Engineering, Lloyd’s Register, said: “A clear and consistent regulatory signal is the single biggest factor that will unlock investment at scale. Without that, the industry will continue to prepare—but not fully commit.
“Regardless of the timing of regulation, a substantial retrofit market is inevitable. As the existing fleet remains central to global trade, the ability to convert vessels efficiently will be critical to meeting decarbonisation targets.”
Download the full report: Lloyd’s Register Engine Retrofit Report - 2026