In its latest Horizons issue, Lloyd's Register states that nuclear power is gaining momentum as a zero-emission propulsion option for commercial shipping, with industry stakeholders accelerating efforts to establish regulatory frameworks ahead of anticipated vessel deployments in the early 2030s.

Speaking at Lloyd's Register's Fuel for Thought briefing during London International Shipping Week, experts outlined progress on international cooperation and licensing mechanisms needed to bring nuclear-powered commercial vessels to market.

The International Atomic Energy Agency has launched its Atomic Technologies Licensing for Applications at Sea (ATLAS) programme, working with Lloyd's Register and the International Maritime Organization to develop legal frameworks and regulatory practices. IAEA director general Rafael Grossi said the programme expects initial outcomes within two years.

The IMO has initiated an update of its non-mandatory Nuclear Code, with first discussions of submissions scheduled for January 2026 at the organisation's sub-committee on Ship Design and Construction. IMO technical officer Ricardo Battista said the organisation is awaiting proposals on base texts and agreement on the full roadmap, including whether to make the revised code mandatory.

Bilateral agreements gain traction

The briefing coincided with the announcement of a UK-US bilateral agreement on licensing for small modular reactors. Paul Fyfe, Senior Director at the UK Office of Nuclear Regulation, suggested bilateral agreements may offer a more efficient approach than consensus forums for developing policy frameworks.

Core Power Group Head of Market Development, Baroness Charlotte Vere, stressed that nuclear corridors could drive billions of dollars of investment in maritime applications, citing national security, energy security, and fleet efficiency as contributing factors beyond decarbonisation.

Dutch offshore operator Allseas is developing its own 25MW electric reactor for large vessels, with land-based testing planned before marine deployment from 2032. Project Manager Nuclear Developments Stephanie Heerema said the company began developing a reactor when it could not find a maritime-ready design, suggesting a conservative target market of around 10,000 large vessels.

Infrastructure and insurance challenges

Port regulations present challenges for nuclear vessel operations. ABPmer Senior Maritime Consultant Richard Vaughan noted that 1847 legislation still governs UK port facilities, though provisions exist for emergency berthing of nuclear submarines.

Insurance models require significant adaptation for nuclear shipping. North Standard P&I Head of External Affairs Mike Salthouse noted that nuclear reactors and vessels would likely be financed and owned separately, requiring new approaches to risk assessment and pricing.

"Our insurance models don't really work for the risks shipping will need to assume," Salthouse said. "We need to understand those, communicate them to our customers and our own insurers, and work out how to price them at a cost-effective level."

Regulatory alignment needed

Lloyd's Register Technical Authority for Nuclear Jez Sims said achieving international alignment on safety, liability, and public understanding will be essential. Existing nuclear liability conventions consider nuclear to be land-based, creating challenges for global maritime nuclear operations.

The IMO's Code of Safety for Nuclear Merchant Ships, developed in the 1980s, requires updating to be technology-agnostic and aligned with other SOLAS chapters updated since 1981.

Lloyd's Register CEO Nick Brown outlined a roadmap that will see port reactors and floating nuclear plants pave the way for nuclear-powered commercial shipping, building on over 70 years of naval reactor operations.

The first commercial floating nuclear power plants are anticipated in 2030, with the first nuclear commercial ships expected in 2032.