UCL research: Nuclear shipping requires lower reactor costs and global policy

New research from University College London’s (UCL) Energy Institute suggests that nuclear-powered container ships could become cost-competitive, but only under specific economic and regulatory conditions.

The study, titled ‘Nuclear Reactors for Merchant Shipping: A Total Cost of Ownership Assessment of a Low-Carbon Pathway’, compares nuclear propulsion against conventional fuel oil and dual-fuel ammonia alternatives. The findings indicate that nuclear vessels are not more economical than conventional ships without the implementation of the International Maritime Organization’s (IMO) proposed Net-Zero Framework (NZF). Under this framework, nuclear ships could improve competitiveness by selling surplus emissions units to other vessels.

Reactor costs are identified as a decisive factor. Estimates for reactor costs range from approximately US$2,600 to US$12,400 per kilowatt of electrical capacity. The report notes that nuclear could become the cheapest option by 2040 if series production leads to substantial cost reductions. However, if costs remain at the higher end of current estimates, nuclear will not be the cheapest option in any scenario.

Beyond technical and economic hurdles, the report highlights significant legal and financial barriers. Current nuclear liability conventions are designed for land-based installations, and experts suggest it could take 15 to 20 years to develop a mature insurance framework suitable for maritime nuclear use.