Ability to commercially insure ships propelled by reactors will be vital to success
The UK is well positioned to lead the development of what could be a £2.5tn (€3tn, $3.1tn) market for new nuclear power systems for commercial ships and floating nuclear power plants, but the ability to commercially insure nuclear propelled ships will be vital, according to report.
The report, ‘Advanced Maritime Nuclear: A unique opportunity for the UK’, was jointly published by Technology company Core Power, global marine insurer NorthStandard, maritime professional services provider Lloyd’s Register.
The report sets out a policy framework for the UK government to support the deployment of advanced small nuclear reactors on commercial ships and floating nuclear power plants.
The Department for Transport should include nuclear-powered shipping and floating nuclear power plants in an updated clean maritime plan and long-term nuclear strategy, the report argues.
Global shipping currently depends on fossil fuels for close to 99% of its energy consumption, but the International Maritime Organisation (IMO) is aiming for its greenhouse gas emissions to reach net zero by around 2050. However, alternative fuels options – including biodiesel, methanol, hydrogen and ammonia – face major cost, production, transportation and use challenges.
NorthStandard managing director Paul Jennings said the ability to commercially insure nuclear propelled ships will be vital to the success of bringing nuclear to maritime.
“It is important that governments understand the need for a civil marine nuclear liability convention within the framework of IMO and work towards creating an appropriate liability regime,” Jennings said.
With the right investments and policies, the UK can develop a multi-billion-pound industry, according to the report. In addition to zero pollution, nuclear powered ships would not rely on shore power in port and could even feed electricity into the grid.
Floating nuclear power plants could also be used to alleviate the issues surrounding shore power and expensive connections to the UK national grid.
Mikal Boe, founder and chief executive officer of Core Power, said maritime nuclear is the catalyst that can reverse the trajectory of the British shipping sector, creating “unique competition to Chinese shipbuilding and ocean transport”.
He said the report reinforces that maritime nuclear power is not only necessary to improve the energy effectiveness of shipping dramatically but also a £2.5tn economic opportunity. Over time, the cost of inaction will far outweigh the cost of being the champion in this rapidly emerging market.”
Background: Increasing Momentum For Action
The report is the latest in a number of recent calls to advance the development and deployment of nuclear-powered shipping.
Christopher Wiernicki, chairman and chief executive officer of the American Bureau of Shipping maritime classification society said recently 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,
Wiernicki told a US summit on the potential of nuclear for the maritime sector that nuclear “disrupts” the commercial model, the economics of shipping, and the operation of vessels and their design.
Last year the maritime industry unveiled its first comprehensive rules for nuclear-powered vessels as the sector lays the groundwork for deploying onboard reactors to reduce its global greenhouse gas emissions.
The industry believes nuclear power could transform the sector with emissions-free shipping, whilst extending the life cycle of vessels and removing the uncertainty of fuel and refuelling infrastructure development. However, regulation and safety considerations must be addressed for its widespread commercial adoption.
A report last year by Netherlands-based nuclear development and consulting company ULC-Energy concluded that nuclear propulsion offers the lowest operational cost for bulk shipping carriers which could use reactors to sail “longer, faster, and cheaper”, all without producing greenhouse gas emissions.
A Lloyds Register report said nuclear power for the maritime industry would be a transformational technology leading to safer, more reliable, emissions free, longer-lived, and more productive ships.
International Atomic Energy Agency director-general Rafael Grossi has already called for a roadmap for nuclear energy to become a viable option to reduce commercial shipping’s global greenhouse gas emissions.
