A new report from Lloyd’s Register and LucidCatalyst, commissioned by Seaspan Corporation, the world’s largest containership tonnage provider, reveals that nuclear-powered containerships could save the shipping industry up to $68 million annually while also eliminating greenhouse gas emissions. The study explores the technical, economic, and regulatory possibilities of integrating small modular reactors (SMRs) into the containership fleet, promising a transformative shift in shipping economics.
For vessel operators, nuclear propulsion presents an opportunity to eliminate their highest operational costs, such as $50 million annually in bunker fuel and $18 million in carbon penalties. The economic impact of switching to nuclear power extends beyond savings on fuel, with the potential for increased cargo capacity and higher speeds.
A single 15,000 TEU nuclear-powered containership, operating at 25 knots (39% faster than conventional vessels), could achieve up to 38% higher annual cargo capacity. This improvement is due to a combination of faster speeds (enabling more voyages) and the elimination of fuel tanks, freeing up space for more containers. Specifically, these ships could complete 6.3 voyages annually (compared to 5 for traditional vessels) and gain 5% additional container space.
The report suggests that for nuclear-powered vessels to become widespread, a cross-industry consortium and a robust supply chain are essential. If the industry commits to purchasing more than 1,000 nuclear-powered ships over the next 10–15 years, the cost of modular reactors could fall to $750–1,000 per kilowatt, significantly reducing the cost compared to conventional nuclear power plants. Additionally, each reactor would be designed to operate for five years between refueling, minimizing downtime and reducing dependency on global bunkering networks.
According to the study, nuclear propulsion systems could reach commercial readiness within just four years, with system costs dropping below $4,000/kW and fuel costs under $50/MWh. Market modeling indicates that the uptake of nuclear-powered vessels could reach 40–90 GW by 2050, depending on regulatory progress and industry adoption.
The study also emphasizes the importance of a competitive supply chain to avoid vendor lock-ins, along with innovative reactor and fuel-leasing models that would help shipowners manage upfront costs while ensuring safety and compliance with regulatory standards.
Peter Jackson, Chief Technology Officer at Seaspan, expressed confidence that despite the challenges, nuclear-powered containerships will soon be able to operate safely, economically, and without emissions. Eric Ingersoll, Managing Partner at LucidCatalyst, highlighted that nuclear propulsion could revolutionize the economics of shipping, enabling these vessels to outperform conventionally fueled competitors without the need for green premiums.
This report marks the first phase of a three-part program. The next stage will focus on concept design and regulatory readiness, including engagement with shipyards, port authorities, and nuclear regulators. A final phase will develop a detailed implementation roadmap for the large-scale deployment of nuclear-powered containerships, covering risk management, certification, and investment strategies.
As the shipping industry seeks to reduce its carbon footprint, nuclear propulsion presents a compelling solution with significant savings and environmental benefits.