Nuclear ships eliminate $68m in annual fuel and carbon costs

Nuclear ships deliver higher speed, cargo capacity, and lower operating costs.

Nuclear-powered containerships are seen to reduce costs and greenhouse gas emissions, whilst also improving transit times without sacrificing safety or economic competitiveness.

According to a new Lloyd’s Register and LucidCatalyst report for Seaspan Corporation Pte. Ltd., nuclear-powered vessels eliminate vessel operators’ highest operating costs, up to $50m annually in bunker fuel and an estimated $18m in carbon penalties.

“Our analysis shows that nuclear-powered containerships will likely outcompete conventionally fuelled and green fuelled competitors—dominating their trading routes through superior performance without requiring green premiums,” Eric Ingersoll, managing partner, LucidCatalyst, said.

“The key to unlocking this advantage is organising the market through sophisticated supply chain and technology strategies. By forming a cross-industry consortium, we can build a responsive supply chain and achieve competitive reactor costs, making nuclear the economically optimal choice for shipowners and charterers alike,” he added.

The analysis found that a single 15,000 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 (enabling 6.3 versus 5 round voyages annually) and 5% additional container space from the elimination of fuel tanks and systems.

“If the industry pledges to purchase more than 1,000 units in 10–15 years, it estimates that modular reactors could be produced for $750 per kilowatt (kW) to $1,000 per kW, significantly cheaper than conventional nuclear power plants, and maintained within standard vessel drydock cycles,” the analysis said.

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 program, with total system costs below $4,000/kW and fuel costs under $50/MWh. Market modelling indicates potential uptake of 40 gigawatts (GW) to 90 GW by 2050, depending on regulatory progress and industry adoption.

“Nuclear propulsion offers not just a decarbonised solution, but a transformative economic opportunity for shipowners and charterers alike,” said  Meg Dowling, senior engineer – Nuclear Technology and Alternative Fuels, Lloyd’s Register.