- Civil nuclear enters mainstream shipping agenda.
- DP World unveils £80m micro-nuclear project at London Gateway.
- Deal accelerates licensing for Small Modular Reactors.
A new chapter in nuclear shipping might be on the horizon with the recent signing of the Atlantic Partnership for Advanced Nuclear Energy. This agreement, inked by UK Prime Minister Keir Starmer and US President Donald Trump, paves the way for US and UK regulators to recognise each other’s nuclear safety assessments. By cutting down the approval process for innovative designs like Small Modular Reactors (SMRs) from as long as four years to about two, this pact is being hailed as a significant leap forward for investment in nuclear maritime projects. It also lays the groundwork for a potential nuclear shipping corridor between the UK and the US, reports Lloyd’s List.
Civil Maritime Nuclear Goes Mainstream
After years on the periphery, the nuclear option for shipping is gaining traction. “Eighteen months ago we would not be having this conversation, but now nuclear is a mainstream agenda item in maritime,” said Mark Tipping, Lloyd’s Register’s nuclear specialist and a board member of the Nuclear Energy Maritime Organisation.
Enthusiasts believe the deal could enable the US and UK to “supercharge” nuclear-powered shipping while challenging China’s shipbuilding dominance.
New Projects Unveiled
To back this agreement, DP World has announced a partnership with US-based Last Energy to construct a micro-nuclear power plant at its London Gateway port. This £80 million ($107 million) project, which won’t require any subsidies, is set to be completed by 2030 and will contribute 20MW to the port’s £1 billion expansion while also exporting extra capacity to the grid.
Knock-On Effect for Maritime Nuclear
While the partnership primarily targets new nuclear power stations, its wider maritime implications are clear. “It sets the tone for how these two countries start collaborating on everything from technology to licensing and permitting. This is about entering maritime nuclear into the policy framework,” said Mikal Bøe, chief executive of nuclear maritime technology company Core Power.
“This agreement between two leading nuclear and maritime nations recognises the economic benefit of civil maritime nuclear and that 2025 is the year it begins to go mainstream.”
Rapid Growth in Nuclear Investment
The world is really picking up speed when it comes to small modular reactors (SMRs). Barclays predicts that by 2050, the net nuclear capacity outside of China and Russia will surge by over 50%, hitting more than 450GW, with SMRs accounting for a significant 40%-60% of that total. Meanwhile, the International Energy Agency expects investments in SMRs to jump from $5 billion today to $25 billion by 2030, with a staggering cumulative investment of $670 billion by 2050.
Regulatory and Political Challenges
However, there are still some bumps in the road. In the past, heavy regulations and worries about public opinion have held things back. The recent US-UK agreement aims to tackle these issues head-on by laying out clear conditions for cooperation between the two nations.
The memorandum explicitly mentions maritime applications: it commits to “exploring opportunities for novel applications of advanced nuclear energy, including civil maritime applications, and playing a leading role informing the establishment of international standards, potential establishment of a maritime shipping corridor between the participants’ territories, and strengthening energy resilience for the participants’ defence facilities.”
International Frameworks in Development
The rules for nuclear-powered ships are still a bit all over the place. The International Maritime Organisation (IMO) is currently updating SOLAS Chapter 8, and the International Atomic Energy Agency (IAEA) has kicked off its Atomic Technologies Licensed for Applications at Sea project to create a solid framework for safely deploying these technologies.
True international harmonisation remains unlikely in the near term, but bilateral pacts like the US-UK deal may serve as catalysts for commercial projects. “Underneath the surface of these bilateral agreements there are significant moves to create the conditions to accelerate nuclear for maritime,” said Bøe.
“There is a moment coming up, I would say probably later this year, where the joining of the dots happens. Where new nuclear policies and this latest political leadership seen in these bilateral agreements and maritime strategies, come together to start creating a unique competitive advantage that will ultimately challenge the hegemony of the Chinese shipping industry today. That’s where this is going,” he added.
The Insurance and Liability Puzzle
A bilateral liability convention between frontrunner nations could give clarity for insurers. “We can’t price that risk until we can define it,” said Mike Salthouse, head of external affairs at NorthStandard.
“At the moment, nuclear is quite different to everything else because, unlike a conventional ship, it is highly likely that the engine reactor and the vessel will be financed separately, and then there’s the fuel and how we deal with the end of life after that. This is all new to us and the reinsurance sector, but it’s clear that nuclear technologies are now part of the future.”
When Will Nuclear Ships Arrive?
Despite optimism, challenges remain around costs, timelines, and public acceptance. Still, industry pioneers remain bullish. “We will see the first deployed civil nuclear maritime assets by around 2032,” said Tipping, who believes rapid scaling will follow.
Bøe argues deployment may happen sooner. “This is a public-private partnership, and the private side is ready to bring the technology, the finance and the solutions. The public side has to set the permitting conditions and the licensing, which it is doing. It’s really a question of how quickly we can bring this to market on the back of a bureaucracy that is suddenly starting to realise that they need to move fast. 2032 is highly realistic, but I think it’s possible we may actually see the first nuclear assets coming out prior to 2030.”
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Source: Lloyd’s List
