Transportation & Logistics Analysis

Nuclear-powered container shipping under study

Nuclear propulsion had until now been excluded from the range of options for the decarbonisation of container shipping. In recent months, however, new projects have come under study.

The container shipping industry has resolutely opted for decarbonisation but progress is slow. To achieve real net zero emissions without transferring the pollution from ship to shore, nuclear power, as we pointed out in an article on green shipping three years ago, is the only mature technology available.

Concrete projects

To date, however, there have been few examples of nuclear propulsion being used for civil purposes. Until now, its adoption for civil use has been held back by security considerations, which have made it unacceptable. In recent months, however, large-scale applied research programmes have begun to show nuclear technology under a more favourable, modern-day light.

  • In January 2024, the United Kingdom and South Korea signed a memorandum of understanding on the development of nuclear-powered merchant ships, particularly bulk carriers and container carriers. "Lloyd's Register believes there is huge opportunity for nuclear technology to support the maritime energy transition and provide long-term low- or zero-carbon fuel supply security," said Sung-Gu Park, president north east Asia at Lloyd's Register, at the signing ceremony. "We have been assessing nuclear's potential over many decades and we are delighted to partner with Zodiac, HD KSOE and Kepco on this R&D project for nuclear-propelled ships."

  • A few weeks earlier, China unveiled a design for a 24,000 TEU nuclear-powered container vessel, produced by Jiangnan Shipbuilding Corp. The project provides for the use of a molten salt reactor, operating at high temperature and low pressure, which, according to its designers, reduces the risk of reactor meltdown.

Operational safeguards

Manufacturing and deconstruction costs apart, the attraction of nuclear technology lies in the fact that the only emission it creates is water vapour. Nuclear-powered ships can sail for years without having to refuel, which, we can say in passing, will not please the oil companies. Moreover, the steam turbines they use can generate colossal power, enabling them to reach commercial operating speeds exceeding 25 knots.

Nuclear technology should delight shippers and modern supply chain managers by combining two fundamental but otherwise unattainable objectives - higher speeds and, at the same time, a sharp reduction in emissions.

For modern-day researchers and analysts, it will be a question of resuming the nuclear story back where it got stuck in the 1960s because of two major obstacles - the cost of nuclear-powered ships and the general refusal to allow them to enter the world's ports, which made it impossible to envisage using them for commercial purposes.

  • On the first point, the development of small modular reactors has opened up new perspectives, since this technology allows costs to be lowered and production times to be reduced.

  • The second point remains contentious. It relates to port calls but also to the question as to whether or not such ships should be allowed to transit through certain areas, notably war zones.

Partisans of the nuclear solution are starting to look at the issues raised by port calls. Lloyd's Register (LR) and Core Power announced in August that they were launching a joint study with the aim of determining the regulatory feasibility and security framework which would need to be established to enable a nuclear container carrier using a fourth generation reactor to carry out cargo operations in a European port. Maersk has announced that it would be taking part in the initative.

Authorising transit through politically unstable areas is another major issue. It is hard to imagine nuclear-powered ships transiting through the Suez Canal at the moment. The adoption of nuclear technology could, therefore, encourage the development of alternative solutions. The big Western shipping companies have said on several occasions that they will not use the Northern Sea Route, officially on ecological grounds but probably also for geostrategic reasons, since the route would involve passing through a sea area under Russian control. Other operators are much more interested, however. Russian nuclear energy group Rosatom announced in June that it had signed an agreement with China's Hainan Yangpu NewNew Shipping with a view to setting up a joint venture company for the design and construction of container carriers and the joint operation of an all-year shipping line using the Northern Sea Route.

The project is a long way from realisation and provides only for a service between China and Russia. If the two countries succeed, however, in generating a real service on the route, nuclear or not, one can imagine that the next stage could involve it being extended to Europe. China has an advantage here in the form of the Gdynia Container Terminal, which is operated by Hutchison Port Holdings, a subsidiary of Hong Kong-based CK Hutchison Holding. Such a service would open the way to the possibility of a major decarbonised shipping link from Shanghai to northern Europe, which would generate no emissions and operate in a safe, high-speed environment for eight months out of 12, as things stand. In terms of stock management, faster transportation of goods and carbon footprint, the prospect is an attractive one, even if it only exists on paper for the moment.

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Expert in maritime transport, Jérôme has been sharing his hard-hitting analyses with Upply readers since 2018. With a degree in Journalism, Anne spent most of her career in the international trade and logistics press, before joining Upply in 2019.
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