LR says methanol engines could be adapted to run on ethanol. File Image / Pixabay

Lloyd's Register (LR) says the future of ship engine retrofits will depend heavily on regulatory progress, particularly the development of a global framework to incentivise the use of zero- and near-zero-emission fuels.

While retrofit capability is continuing to advance, uncertainty around future rules is slowing decision-making on large-scale conversions, LR said in its new report published on Thursday.

Only a limited number of retrofit projects were announced in 2025, although technical progress has been evident, LR added.

A methanol retrofit on the container vessel COSCO Shipping Libra demonstrates that deep-sea conversions are now technically viable and moving towards more repeatable solutions.

Engine manufacturers, including Wartsila and WinGD, have also expanded retrofit offerings across fuels such as LNG and ethanol, widening the range of potential compliance pathways.

Despite this progress, LR says the timing and scale of retrofit uptake will ultimately be shaped by regulatory clarity.

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, Mark Penfold, Global Head of Technology, Engineering at LR, said.

“The report adds that, regardless of timing, a substantial retrofit market is expected as the existing fleet remains central to global trade and will need to adapt to meet tightening emissions targets.”

The report can be downloaded from here.