ABS Sees No Net-Zero in Shipping Without Nuclear Power

Wiernicki says nuclear technology is a viable solution for shipping decarbonisation. Image Credit: ABS

American Bureau of Shipping (ABS) CEO Christopher Wiernicki argues achieving net-zero emissions in shipping will require serious consideration of nuclear propulsion technologies as a viable solution.

"New nuclear technology is a global decarbonisation solution and a commercial shipping disruptor.

"There is no net zero by 2050 without nuclear," Wiernicki said during a speech at the Core Power New Nuclear for Maritime Houston Summit held on Wednesday.

Nuclear technology can be a game changer, with potential to reshape the economics of shipping as well as vessel operations.

"Not only does it offer zero carbon operations but higher power with faster transit speeds, increased cargo storage due to the elimination of fuel storage and it unlocks the potential for reverse cold ironing where the vessel powers the port," Wiernicki said.

It also eliminates the need for frequent bunkering.

Wiernicki challenges the notion that nuclear technology is too expensive, asserting that new nuclear can be highly competitive.

"The economics are compelling over the life of a vessel.

"When you account for fuel differentials, the cost of compliance and residual value, it costs roughly the same as fossil options, only with zero carbon operations. And it gets much more attractive when compared to the high cost of green fuels."

Despite these advantages, he thinks there remain significant challenges for nuclear technologies to commercialise in shipping. 

Wiernicki believes unlocking nuclear's potential will require a new public-private partnership and a fresh commercial model.

Insurance models must adapt, regulatory gaps must be addressed, global licensing standards developed, and crew training must be a key investment, he concludes.

While nuclear energy has been used in naval vessels, its adoption in commercial shipping has been hindered by regulatory and safety concerns.

Mikal Bøe, CEO of Core Power, told Ship & Bunker last year that he expects the first orders of vessels equipped with nuclear reactors before the end of this decade.