Nuclear Power Touted as Future of Containership Propulsion

Report estimates $68 million in annual savings per vessel from nuclear propulsion

Mar. 16, 2026 at 5:42am

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A recent industry report by Lloyd's Register and LucidCatalyst, commissioned by Seaspan Corporation, is touting the benefits of nuclear-powered containerships. The report estimates that nuclear propulsion could save up to $68 million in annual operating costs per container vessel, while also eliminating a significant amount of greenhouse gas emissions. Key to the success of this model would be the adoption of small modular reactors (SMRs), which proponents say are quicker and cheaper to build than traditional nuclear plants.

Why it matters

As oil prices climb due to geopolitical strife, the cost of operating containerships has soared. Nuclear propulsion could provide significant cost savings and emissions reductions for the shipping industry, which is under pressure to reduce its environmental impact. However, the report notes that widespread adoption would require overcoming challenges such as revamping port infrastructure, securing uranium supplies, and meeting regulatory requirements.

The details

According to the report, a nuclear-powered containership of 15,000 twenty-foot equivalent units (TEUs) would be 39% faster and provide up to 38% more capacity than conventional vessels, due to the removal of oil-based fuel tanks and systems. The report estimates $50 million in annual bunker fuel cost savings and $18 million in avoided carbon penalties per vessel. Key to this model is the use of small modular reactors (SMRs), which proponents say are quicker and cheaper to build than traditional nuclear plants. NANO Nuclear Energy, Inc. and Kairos Power LLC are among the companies working on SMR development, with plans for demonstration projects in the U.S. and Canada.

  • The design work for SMRs is done, and the technology is ready to proceed to the demonstration phase.
  • NANO's timeline calls for completion of initial SMR construction in 2028-2029, and licensing in 2030.
  • Due to the need to modify the reactors for maritime use, they wouldn't become commercially available for installation in containerships until 2032 or 2033 at the earliest.

The players

Seaspan Corporation Pte. Ltd.

An independent containership operator and charter owner that commissioned the report by Lloyd's Register and LucidCatalyst.

Peter Jackson

Chief technology officer at Seaspan.

James Walker

Chief executive officer of NANO Nuclear Energy, Inc.

Kairos Power LLC

A company planning the construction of a demonstration reactor in Oak Ridge, Tennessee.

Global First Power

The parent company of a project sponsor that filed for Chapter 11 bankruptcy protection in October 2024, delaying a small modular reactor project in Canada.

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What they’re saying

“You don't want to do a scaled-down conventional [light-water] reactor system. The necessary safety measures for a large reactor 'would kill the economics.'”

— James Walker, Chief executive officer of NANO Nuclear Energy, Inc.

“Naturally, there are challenges to overcome, but I am confident that ongoing work in this area and studies like this will soon allow nuclear-powered containerships to be operating safely, economically and emission-free.”

— Peter Jackson, Chief technology officer at Seaspan

What’s next

NANO is currently in discussions with shipping companies about adopting the small modular reactor technology, and the company plans to build what it says will be the United States' first small-scale microreactor system on the campus of the University of Illinois Urbana-Champaign.

The takeaway

The potential benefits of nuclear propulsion for containerships, including significant cost savings and emissions reductions, have sparked industry interest. However, widespread adoption will require overcoming challenges such as revamping port infrastructure, securing uranium supplies, and meeting extensive regulatory requirements across multiple countries.