Nuclear-Powered LNG Vessels Could Save on Fuel Costs But Are Heavily Expensive to Build

Abs study on nuclear-powered LNG shipping has found that such vessels could cost up to 2.5 times as much to build as conventional ones, but reduce fuel costs significantly over their operating life.

The joint study involving Abs, Blossom Energy and a global shipping company assessed a 174,000-cubic-metre LNG carrier equipped with a high-temperature gas-cooled reactor being developed by Blossom Energy. The vessel's arrangement, propulsion systems and operating conditions were compared to those of a conventional LNG-fueled newbuild.

The study also examined a business model in which the reactor is treated as a long-term energy asset that could be removed and installed on a second vessel after the first LNG carrier reaches the end of its service life. This potential reuse was factored into the vessel's residual value, providing a clearer picture of what nuclear propulsion could mean in practice.

Patrick Ryan, Abs Senior Vice President and Chief Technology Officer, said that 'nuclear energy has the potential to fundamentally change the economics of commercial shipping.' Shimpei Hamamoto, CEO of Blossom Energy, added that the study provides 'a quantitative basis for discussing nuclear propulsion in commercial shipping.'