Reaction Time – Bunkerspot - August/September 2024

In this article, Steve Simms urges bunker traders and suppliers to take notice, as nuclear power has now

arrived in their industry. Despite safety concerns and legal hurdles, research suggests that nuclear-

powered vessels could become mainstream in the next 25 years, with small modular reactors (SMRs)

offering a promising solution for ships.

The article highlights the NS Savannah’s history and its environmental benefits, noting that the vessel’s

operation was halted primarily due to economic factors, not technological limitations. While nuclear-

powered ships have been largely restricted to military use, the rise of environmental regulations like the

EU’s FuelEU and IMO’s decarbonization goals could help overcome economic barriers and encourage

nuclear power adoption in commercial shipping.

The main obstacles remain economic, with high fuel costs being a key challenge. However, new

technologies and regulatory frameworks, including the growing carbon pricing mechanisms, are

expected to make nuclear-powered vessels economically viable, particularly for large fleets.

Additionally, small modular reactors (SMRs) are advancing, and several countries, including Russia and

China, are already using them.

The future of nuclear in shipping will likely involve innovations like green shipping corridors and SMR

leasing models, where companies develop, lease, and maintain SMRs for vessels. This model could

alleviate some concerns about nuclear safety and proliferation. Bunker traders and suppliers are

encouraged to stay informed about these developments, as nuclear power could become a significant

part of the maritime industry’s energy mix sooner than anticipated.

Read the full article and details of considerations here: Reaction Time – Bunkerspot | August/September 2024