Nuclear-Powered LNG Carriers May Cut Lifetime Costs Despite Higher Build Costs

A study by ABS has found that nuclear-powered LNG carriers could be more expensive to build than conventional vessels, but potentially cut lifetime costs.

The research compared a 174,000 cubic meter LNG carrier equipped with a high-temperature gas-cooled reactor to a conventional LNG-fueled newbuilding. The initial cost of the nuclear vessel was estimated to be around 2.5 times that of the conventional ship.

However, the study's modeling indicated that total cost of ownership could be as much as 15 percent lower across the vessel's life under the IMO Net-Zero Framework carbon-cost scenario examined in the study. This is provided that surplus compliance credits can be pooled across a fleet.

The model also yielded a 4 percent TCO advantage without pooling, and it was assumed that the nuclear reactor would have a longer lifespan than the conventional vessel.