In shipping's race to decarbonise, nuclear propulsion for merchant vessels is gaining interest. It joins a packed list of contenders alongside alternative fuels (such as hydrogen, methanol and ammonia) as well as electric vessels running on batteries.
It is important to bear in mind that nuclear power for shipping is not new technology. Naval vessels have utilised onboard nuclear reactors for decades and a number of experimental nuclear merchant vessels were constructed and operated in the 1960s and 1970s (including the American NS Savannah, German Otto Hahn and Japanese Mutsu). The key question is whether nuclear shipping is a viable contender capable of truly decarbonising the maritime industry on a well to wake basis. To determine this financial, legal and practical factors need to be considered, alongside (perhaps most importantly) the public perception and concerns over the potential risks of nuclear power.
Insurance is a key factor to consider. At present, damage caused by nuclear fuel, nuclear waste or from combustion of nuclear fuel is excluded from most marine insurance policies, including P&I cover. Consequently, at present a merchant nuclear vessel would effectively be impossible to insure commercially and this will impact the financial viability of shipping's nuclear option.
Other issues arising include:
- How is nuclear shipping currently regulated?
- How would nuclear shipping be recognised in environmental regulations?
- What are the practical requirements and safety concerns?
- Can nuclear shipping work financially?
To understand more about these issues in detail, read HFW's full briefing HERE.