The aforementioned findings come from a new joint report by Lloyd’s Register and LucidCatalyst, which was conducted on behalf of Seaspan Corporation Pte. Ltd.
The study examines the technical, economic, and regulatory possibilities of integrating small modular reactors (SMRs) into the container ship fleet.
LucidCatalyst performed a comprehensive cost and benefit analysis in relation to Seaspan’s business model and developed, in collaboration with the company, requirements which, if met, would create significant value.
For shipowners and managers, nuclear-powered ships eliminate their largest operational expenses: up to $50 million annually for fuel and an additional approximately $18 million in carbon cost.
According to the analysis, a 15,000 TEU nuclear-powered containership, operating at a speed of 25 knots (39% faster than conventional ships), could offer up to 38% greater annual transport capacity compared to a conventional ship.
This is due to the increased number of round trips (6.3 versus 5 annually) and the additional 5% capacity resulting from the removal of fuel tanks and systems.
According to the research, if the industry commits to orders of over 1,000 ships within 10-15 years, it is estimated that modular reactors could be produced at a cost of $750-$1,/kilowatt, significantly lower than that of conventional nuclear plants, and be maintained within regular dry-docking cycles.
Each unit will be designed to operate for approximately five years without refueling, drastically reducing downtime and providing independence from global fuel supply networks.
The study also presents a roadmap according to which nuclear propulsion systems can reach commercial readiness within four years from the start of an intensive program, with a total system cost below $4,/kW and a fuel cost below $50/MWh.
Market modeling shows a potential penetration of 40-90 GW by 2050, depending on regulatory developments and the degree of adoption.
The findings also highlight best practices for designing a competitive supply chain, which would ensure supply depth, competition on price and performance, while avoiding dependence on specific suppliers.
Innovative models for reactor and fuel leasing are also presented, which could help shipowners and managers cover the initial cost, while maintaining high levels of safety and compliance.
The report constitutes the first phase of a three-part program.
The next stage will focus on concept design and regulatory readiness, through collaboration with shipyards, port authorities, and nuclear regulatory bodies.
The final phase will include a detailed implementation roadmap, with an analysis of risk management, certification, and investment strategies for large-scale development.
According to Meg Dowling, Senior Engineer at Lloyd’s Register on nuclear technology and alternative fuels, “the energy transition and the long-term sustainability challenges of shipping require solutions that can scale.
Nuclear propulsion not only offers a zero-emission solution but also a transformative economic opportunity for shipowners and charterers.
The research results provide a strong basis for determining how systems can be integrated into the commercial fleet, charting a credible path towards safe, commercially viable, and zero-emission shipping.”
For his part, Peter Jackson, Chief Technology Officer of Seaspan Corporation Pte. Ltd., stated: “As part of our ongoing efforts to find safe and commercially viable energy transition practices, we collaborated with Lloyd’s Register and LucidCatalyst to explore nuclear propulsion in containerships.
Small Modular Reactors (SMRs) are a particularly interesting technology, offering a range of significant advantages for shipowners and operators, as described in the report.
Of course, there are challenges to be overcome, but I am confident that the current work and related studies will soon enable the safe, economical, and emission-free operation of nuclear-powered containerships.”
