The U.S. Maritime Administration (MARAD) has signed a cooperation agreement with nuclear technology company CORE POWER aimed at accelerating the development of a new generation of nuclear-powered merchant vessels operating under the U.S. flag.
The initiative is designed to address regulatory, industrial and operational barriers that have historically limited nuclear propulsion mainly to naval vessels.
CORE POWER plans to begin construction-related work from 2028, although the agreement does not require MARAD to finance, purchase or acquire any ships.
The project is part of a broader U.S. effort to rebuild national maritime capacity and strengthen the country’s position in global shipbuilding and commercial shipping.
For decades, nuclear propulsion has been used primarily by military fleets, particularly submarines and aircraft carriers. Applying similar technology to commercial shipping could offer major advantages, including very long vessel endurance, reduced dependence on conventional marine fuels, high energy density and lower lifecycle emissions.
CORE POWER founder and CEO Mikal Bø said that China is already moving toward commercial nuclear-powered shipping and argued that this development should receive serious attention in Washington.
Rather than competing directly with Asian shipyards in conventional shipbuilding, the CORE POWER concept proposes a different industrial model.
Under the proposed approach, allied shipyards in Japan and South Korea could build vessel hulls and conventional marine systems, while the United States would develop the infrastructure required for nuclear technology integration, reactor fueling, testing, certification, maintenance and lifecycle support.
This could allow the U.S. to create a strategic maritime nuclear industry without rebuilding the entire commercial shipbuilding supply chain domestically.
MARAD Administrator Stephen Carmel described nuclear propulsion as a major opportunity that must be considered as a complete system rather than simply as a new type of engine.
Commercial nuclear shipping requires solutions across many areas, including safety, licensing, investment, crew training, port access, reactor fuel, insurance, financing, maintenance and industrial capacity.
The cooperation agreement between MARAD and CORE POWER is expected to create a forum where these issues can be addressed together.
One of the biggest challenges will be access to ports.
Even if nuclear-powered merchant ships become technically viable, port authorities around the world will need to develop procedures for vessels carrying nuclear reactors.
Questions remain around emergency planning, radiation safety, security zones, crew certification, insurance liability, refueling and port infrastructure.
Without internationally accepted rules, commercial operators could face restrictions that make nuclear-powered shipping difficult to operate on a global scale.
The International Maritime Organization is currently reviewing its safety framework for nuclear merchant ships, which dates back to 1981.
A revised international framework is expected to be considered for adoption around 2030.
At the same time, the International Atomic Energy Agency is launching its ATLAS initiative in Washington, bringing together nuclear regulators and maritime authorities.
One of the technologies attracting growing attention is the Small Modular Reactor, or SMR.
Unlike traditional large nuclear power plants, SMRs are designed to be smaller, more standardized and potentially easier to manufacture.
For commercial shipping, they could offer several advantages, including compact size, long operating cycles, factory-based production, reduced refueling frequency and extremely high energy density.
Earlier this year, MARAD issued a request for information on commercially viable small modular reactor concepts for maritime applications.
The agency has also signed agreements with the Port of Long Beach and Port of Corpus Christi to study potential uses of nuclear technology in the maritime sector.
Ports could eventually support reactor maintenance, fuel handling, inspections, technical support, emergency response and specialized workforce training.
One of the biggest potential advantages of nuclear propulsion is the ability to operate for extremely long periods without conventional bunkering.
Large merchant ships currently consume enormous quantities of fuel during international voyages. A nuclear-powered vessel could potentially operate for years without traditional marine fuel, depending on the reactor design.
That could significantly change the economics and logistics of global shipping.
However, commercial nuclear propulsion still faces major obstacles, including insurance and liability, public acceptance, port restrictions, nuclear security, crew training, reactor licensing, waste management and high initial investment.
International cooperation will also be critical because a vessel approved in one country would not automatically be accepted in ports around the world.
Nuclear-powered merchant ships are not entirely new. Several experimental commercial nuclear vessels were built during the twentieth century, but the technology never became widespread because of high costs, regulatory complexity and public concerns.
Today, the situation is different.
The shipping industry is under increasing pressure to reduce emissions, fuel markets remain volatile, and modern reactor technology is far more advanced than it was several decades ago.
CORE POWER says it aims to begin building the industrial framework for commercial nuclear-powered vessels from 2028.
The timeline remains ambitious, and many technical and regulatory issues still need to be resolved.
However, the agreement with MARAD represents an important step toward turning nuclear-powered commercial shipping from a long-term concept into a potential industrial program.
If successful, nuclear propulsion could become one of the most important technological shifts in commercial shipping over the next decade.
