SMRs could bring huge savings, but cross-industry consortium will be ‘essential for widespread success’
Manufactured nuclear propulsion units for container ships could reach commercial readiness within four years of starting an intensive deployment programme, with the potential to eliminate operating costs of up to $68m (€58m) annually, according to a new report.
Small modular reactors (SMRs) for nuclear-powered vessels could be produced for $750-1,000 per kW, significantly cheaper than conventional nuclear power plants, and maintained within standard vessel drydock maintenance cycles.
For vessel operators, nuclear-powered vessels could eliminate their largest operating costs – up to $50m annually in fuel and an estimated $18m in carbon penalties.
Nuclear vessels would also cut greenhouse gas emissions and deliver faster transit times, while maintaining safety and economic competitiveness.
The findings are drawn from a new Lloyd’s Register and LucidCatalyst report for Seaspan Corporation, a Singapore-based marine services company. The report examines the technical, economic, and regulatory potential of integrating SMRs into the containership fleet. LucidCatalyst performed a comprehensive analysis of the costs and benefits for Seaspan’s business model and collaboratively developed requirements that, if met, would create significant value.
According to the analysis, a single 15,000 TEU (twenty-foot equivalent unit) nuclear-powered containership operating at 25 knots – 39% faster than conventional vessels – could deliver up to 38% higher annual cargo capacity compared to conventionally fuelled vessels through a combination of increased speed and 5% additional container space from the elimination of fuel tanks and systems. A TEU is a standard unit of measurement for cargo capacity in the shipping industry that is based on the volume of a 20-foot shipping container.
The report highlights that translating these requirements into a rigorous, requirements-led supply chain and procurement strategy, through a cross-industry consortium, will be essential for widespread success.
If industry pledges to purchase more than 1,000 units in 10-15 years, it estimates that modular reactors could be produced for $750-1,000 per kW, significantly cheaper than conventional nuclear power plants, and maintained within standard vessel drydock cycles.
Each unit would be designed to operate for around five years between refuelling, drastically reducing downtime and providing independence from global bunkering networks.
The study outlines a roadmap showing how manufactured nuclear propulsion units could reach commercial readiness within four years of starting an intensive programme, with total system costs below $4,000/kW and fuel costs under $50/MWh. Market modelling indicates potential uptake of 40-90 GW by 2050, depending on regulatory progress and industry adoption.
Roadmap Warns Of ‘Considerable Challenges’
In October Lloyd’s Register published a guidance document, Navigating Nuclear Energy in Maritime, providing what it said is the first roadmap for the use of nuclear technology in commercial shipping and offshore industries, but warning of “considerable challenges”.
Global shipping currently depends on fossil fuels for close to 99% of its energy consumption, but the International Maritime Organisation is aiming for its greenhouse gas emissions to reach net zero by around 2050.
There have been a number of recent calls to advance the development and deployment of nuclear-powered shipping.
International Atomic Energy Agency director-general Rafael Grossi has been calling for a roadmap for nuclear energy to become a viable option to reduce commercial shipping’s global greenhouse gas emissions.
Christopher Wiernicki, chairman and chief executive officer of the American Bureau of Shipping maritime classification society said earlier this year that new nuclear can be a transformational technology for the shipping industry, but challenges remain including the need for a new commercial model and for public/private partnerships in a bid to finance development and deployment.
Last year the maritime industry unveiled its first comprehensive rules for nuclear-powered vessels as the sector lays the groundwork for deploying onboard reactors .
