Nuclear-powered containerships could eliminate bunker costs, cut greenhouse gas emissions, and deliver faster transit times while maintaining safety and economic competitiveness, according to a new report by Lloyd's Register and LucidCatalyst for Seaspan Corporation.

The report examines the technical, economic, and regulatory potential of integrating small modular reactors (SMRs) into the containership fleet. LucidCatalyst performed an analysis of the costs and benefits for Seaspan's business model and developed requirements that, if met, would create value for the sector.

According to the report, nuclear-powered vessels could eliminate up to $50 million annually in bunker fuel costs and an estimated $18 million in carbon penalties for vessel operators.

The analysis claims a single 15,000 TEU 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. This would be achieved 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.

The report states that translating these requirements into a supply chain and procurement strategy through a cross-industry consortium is needed for widespread adoption. If industry pledges to purchase more than 1,000 units in 10–15 years, the report estimates that modular reactors could be produced for $750–1,000 per kilowatt, which it claims would be cheaper than conventional nuclear power plants. The units would be maintained within standard vessel drydock cycles.

Each unit would be designed to operate for around five years between refueling, according to the report, 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 modeling indicates potential uptake of 40–90 GW by 2050, depending on regulatory progress and industry adoption.

The findings also point to practices for designing a competitive supply chain that provides depth of supply, competition on price and performance, and avoids vendor 'lock-in', as well as reactor and fuel-leasing models that could help shipowners and operators manage upfront costs while maintaining safety and regulatory compliance.

The report forms 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 create a detailed implementation roadmap, outlining risk management, certification, and investment strategies for large-scale deployment.

Meg Dowling, Senior Engineer — Nuclear Technology and Alternative Fuels at Lloyd's Register, said: "The energy transition and long-term sustainability challenges of shipping demand long-term solutions that can scale. Nuclear propulsion offers not just a decarbonized solution, but a transformative economic opportunity for shipowners and charterers alike. The results of this research give us a strong foundation to define how systems can be integrated within the commercial fleet to provide a credible pathway towards safe, commercially viable, zero-emission shipping."

Peter Jackson, Chief Technology Officer at Seaspan Corporation, said: "As part of our ongoing efforts to find safe and commercially viable energy transition pathways, we have partnered with LR and LucidCatalyst to explore nuclear propulsion for containerships. Small Modular Reactors (SMRs) is a very exciting technology offering several desirable benefits for shipowners and operators, as outlined in this report. 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."

Eric Ingersoll, Managing Partner at LucidCatalyst, added: "Nuclear propulsion transforms shipping economics, not just emissions. 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. The key to unlocking this advantage is organizing 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."

Lloyd's Register is a founding member of the Nuclear Energy Maritime Organisation (NEMO) and an active contributor to the IAEA's Atomic Technologies Licensed at Sea (ATLAS) programme. Both initiatives are shaping the global regulatory landscape for commercial nuclear shipping.

Lloyd's Register recently issued Navigating Nuclear Energy in Maritime, a guidance document providing a roadmap for the use of nuclear technology in commercial shipping and offshore industries. This guidance builds on Lloyd's Register's Fuel for Thought: Nuclear research programme, which brings together classification, safety, and compliance expertise with nuclear insight to provide a framework for project teams at every stage of development.