Researchers discover overlooked factor that could solve major issue in shipping industry: 'Transforms shipping economics'

Nuclear energy could be key to making the maritime shipping industry more efficient and environmentally friendly. 

A report from Lloyd's Register and LucidCatalyst revealed that using nuclear power for containerships would deliver significant benefits. It could make transit faster, reduce planet-warming gas pollution, and provide major savings on fuel costs. 

The report examined the business model of the maritime shipping company Seaspan Corporation to assess the costs and benefits of going nuclear. 

It was determined that ships powered by nuclear energy could reduce bunker fuel spending by up to $50 million per year, which is usually the most significant operating cost.

"Nuclear propulsion transforms shipping economics, not just emissions," said Eric Ingersoll, a managing partner at LucidCatalyst, per Lloyd's Register. 

"Our analysis shows that nuclear-powered containerships will likely outcompete conventionally fuelled and green fueled competitors — dominating their trading routes through superior performance without requiring green premiums." 

Containerships could use small modular reactors, a type of nuclear fission reactor. This has the potential to save vessel operators an estimated $18 million in annual carbon penalties. 

With this nuclear model, ships could also increase their cargo delivery capacity by up to 38% compared to vessels that use conventional fuel sources. 

Seaspan Corporation plans to make this a reality with concept design, regulatory preparation, and an implementation roadmap. 

"As part of our ongoing efforts to find safe and commercially viable energy transition pathways, we have partnered with LR and Lucid Catalyst to explore nuclear propulsion for containerships," said Peter Jackson, chief technology officer at Seaspan Corporation, per Lloyd's Register. 

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"Small Modular Reactors is a very exciting technology offering several desirable benefits for shipowners and operators. 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."

Nuclear power is a controversial energy source with pros and cons. The world needs affordable, reliable power sources and clean alternatives to traditional dirty fuels, and nuclear energy can produce a lot of low-carbon electricity.

It does come with risks, however, like radioactive waste, safety concerns, and high upfront costs. But aside from shipping, big tech and artificial intelligence need large amounts of energy to operate, and nuclear power can support those efforts without adding undue strain to energy grids and increasing energy bills for households.

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