The United States Maritime Administration (MARAD) and Core Power (US) Inc. have signed a memorandum of cooperation (MOC) to develop a commercial, industrial and regulatory pathway for a future fleet of US-flagged nuclear-powered merchant vessels, the organisations announced on 24 August.

The agreement, formalised during a signing ceremony at the US Department of Transportation headquarters in Washington, D.C., is described as the first federal-private cooperation framework of its kind in the commercial maritime nuclear sector. Core Power is targeting first construction from 2028, though the company notes this timeline remains subject to regulatory, commercial, project and industrial readiness.

MARAD Administrator Stephen M. Carmel remarked: "This framework ensures that the United States leads the world with a secure US-flagged fleet. Nuclear propulsion is a serious commercial opportunity, but it must be approached as a complete system — safe, secure, licensable, and investable."

The MOC is intended to turn policy into an actionable commercial pathway. It establishes a forum for government, industry and other stakeholders to work through regulatory acceptance, port operations, workforce credentialing, fuel and lifecycle services, insurance and finance, industrial capacity and potential federal demand structures. Reducing uncertainty across these areas is intended to enable private capital to commit to ships, yards and supporting infrastructure.

China cited as spur to action

The announcement points to China's position in global shipbuilding as context for the initiative. China dominates global commercial shipbuilding and, Core Power notes, is actively developing nuclear-powered commercial shipping, with state-owned shipbuilders promoting nuclear-powered merchant vessel concepts and building relevant nuclear manufacturing capability.

Mikal Bøe, founder and CEO of Core Power, said: "China is already moving toward nuclear-powered commercial shipping. That should focus minds in Washington. America does not regain maritime strength by building a better version of yesterday's ship."

Bøe added that the company is not seeking further study periods: "We are not asking for another study. Core Power is targeting first construction from 2028. Government can set the direction and coordinate; private industry must move the money and the steel."

Industrial model

Under the framework, Core Power plans to develop a dedicated US nuclear-grade integration and lifecycle shipyard for nuclear installation, initial fueling, testing, commissioning, refuelling, defuelling and through-life support. Conventional hulls and marine systems would be constructed at commercial shipyards, with the company intending to leverage allied shipbuilding capacity — specifically citing Japan and South Korea — to accelerate conventional hull construction.

Bøe explained: "Japan and South Korea can accelerate conventional ship construction while America builds the specialist nuclear-grade integration and lifecycle capability at home — capability that can also strengthen the wider maritime industrial base."

A US nuclear shipyard of this type is also designed to expand the nuclear-qualified workforce, suppliers and heavy engineering capacity available to the broader US maritime industrial base.

The initiative follows MARAD's request for information, published in the Federal Register on 7 May 2026, titled 'Development of a Commercially Viable System-Centric Small Modular Reactor Concept for Deployment in the Marine Transportation System'. The comment period on that document closed on 5 August 2026.

Both parties note that nuclear propulsion eliminates emissions from propulsion and avoids dependence on conventional marine fuel supply chains, while enabling higher sustained speeds compared with conventionally fuelled vessels, adding that the commercial task as building a complete system that is safe, secure, licensable, insurable, financeable and operable at fleet scale.

The MOC is non-exclusive and is not a procurement contract, grant or commitment of federal funds, nor does it commit MARAD to acquire any vessel, technology or service.

The announcement comes ahead of the International Atomic Energy Agency's ATLAS — Atomic Technologies Licensed for Applications at Sea — launch forum, scheduled for 26 and 27 August in Washington, D.C.