Why the Shipping Industry Is Turning Its Attention to Nuclear Power

Commercial shipping causes significant pollution, accounting for about 3% of global greenhouse gas emissions, or roughly a billion tonnes of CO2-equivalent annually.Heavy fuel oil combustion emits sulfur oxides (SOx), nitrogen oxides (NOx) and black carbon, worsening coastal air quality and causing respiratory illness.Ships release millions of gallons of oily bilge water that spreads invasive species, along with fuel from accidental spills into marine habitats.While between 46% and 72% of cruise ships utilize electric shore power, the technology is relatively rare; only 3% of ports offer Onshore Power Supply (OPS) services. The vast majority continue to allow berthed ships to generate onshore power using traditional diesel engines burning heavy bunker fuel.This however, could be changing thanks to advanced nuclear technologies, which “are shifting from the theoretical into practical consideration for ports and the maritime sector,” states a new joint paper from the British Ports Association and Lloyd's Register."Advanced nuclear technology could reshape port environments, maritime operations and industrial energy systems. It offers potential benefits in reliable low-carbon power, shore power, industrial heat, fuel production, vessel propulsion, resilience and high-value maritime services.”Potential applications include nuclear-powered ships, floating or transportable nuclear power units, and land-based small modular reactors (SMRs) or microreactors to power port operations and support fuel production, states World Nuclear News.“Ports are becoming increasingly large electrical power consumers and some are exploring their own role in energy production,” the paper says. “Electrified cargo-handling equipment, cold storage, shore power, electric fleets, industrial tenants, data centres, hydrogen production and synthetic fuel pathways are all increasing demand for reliable, low-carbon electricity. Small nuclear reactors can provide stable baseload power for ports and reduce reliance on regional grids, depending on power demand, site location, regulations, grid constraints, and cost. Ports are often located at the intersection of constrained grids, heavy industrial demand, strategic logistics and local air-quality or decarbonisation pressures.“Nuclear offers a possibility to provide for these new or increasing demands in a compact, reliable, low-emission package that is inherently safe.”Out of only four civilian nuclear-powered merchant ships ever built, including the US NS Savannah and Russian icebreakers, the Russian cargo vessel Sevmorput is the sole commercial ship using nuclear propulsion.Building a nuclear-powered container ship currently costs between $228 million and $582 million, compared to about $119.6 million for a conventional fuel-oil ship.No small modular reactors (SMRs) are currently operating or actively powering port infrastructure, although the Port of Corpus Christi, Texas signed a Memorandum of Cooperation with the Maritime Administration (MARAD) in August 2026 to study SMR-powered port microgrids, shoreside power and floating nuclear energy systems.The study by the British Ports Association and Lloyd’s Register suggests a single 100 Mwe-class SMR could in principle meet the electricity needs of a medium-sized port and several industrial tenants.“The best candidates for port-based nuclear are likely to have large, steady and growing electricity demand, grid constraints, nearby energy-intensive industries, sufficient secure space, manageable site hazards, supportive regulatory or policy environments and strategic resilience needs. Detailed port-specific assessment is essential before any technology match or investment decision can be credible.”Rather than rushing into nuclear, The paper proposes a tiered readiness model, enabling each port to adopt a proportionate level of ambition: from becoming 'nuclear-aware', with the ability to assess enquiries and engage authorities, through to 'nuclear-ready' and 'nuclear-enabled', or ultimately operating as a nuclear energy hub…The paper concludes: "Advanced nuclear is not imminent for every port, nor is it a universal solution. But it is strategically significant and relevant to future energy demand such that port leaders should begin structured, proportionate planning in the near-term…British Ports Association CEO Richard Ballantyne added: "For ports, the opportunities for advanced nuclear go beyond receiving a nuclear-powered ship. They are already planning for significant changes in energy demand, infrastructure and the vessels they serve. Advanced nuclear may not be the right solution for every port, but it is important that the sector understands the potential applications and starts asking the right questions early on."The push to electrify maritime ports — replacing diesel-powered container-handling equipment such as gantry cranes, terminal tractors and reach-stackers with electric models — is creating a surge in localized energy demand. When combined with the high power requirements of shore power for docked vessels, ports are transforming into major electricity consumers.This shift opens up a substantial opportunity for advanced nuclear technologies, specifically small modular reactors (SMRs) and microreactors to act as dedicated, port-side clean energy hubs.Nuclear provides dependable 24/7 baseload power, making it well suited for high-density industrial applications where intermittent renewables like solar or wind fall short without large battery backups.By Andrew Topf for Oilprice.comMore Top Reads From Oilprice.comInvestors From 119 Countries Pile Into Dangote’s Record Refinery IPOU.S. Lawmakers Warn Banks Against Trump's Russian Diesel DealIran Eyes $130 Oil While at Least 50 Tankers Sit Stuck in the Gulf