ABS Study Examines Economics of Nuclear-Powered LNG Carriers

A joint study by the American Bureau of Shipping (ABS), Blossom Energy and a global shipping company has assessed the economic feasibility of nuclear propulsion for large liquefied natural gas (LNG) carriers, finding that a nuclear-powered vessel could require significantly higher upfront investment while reducing fuel costs over its operating life.

Presented at Gastech 2026, the study examined a 174,000-cubic-metre LNG carrier fitted with a 20-25 MWe high-temperature gas-cooled reactor (HTGR) being developed by Blossom Energy.

The assessment compared the vessel arrangement, propulsion system and operating conditions of the nuclear-powered design with those of a conventional LNG-fuelled newbuild. The economic analysis also considered different scenarios involving potential regulatory penalties.

Nuclear Propulsion Could Increase Initial Investment

According to the study, the initial investment required for the nuclear-powered LNG carrier would be approximately 2.5 times that of a conventional LNG carrier.

However, the higher capital cost would be offset in part by lower fuel expenditure during the vessel’s operating life. The study examined the economics across different regulatory scenarios to assess how potential penalties could affect the relative costs of the two propulsion options.

“Nuclear energy has the potential to fundamentally change the economics of commercial shipping, from vessel design to long-term operating costs. ABS is proud to support studies like this one that move the industry beyond theory and toward a clearer picture of what nuclear propulsion could mean in practice,” said Patrick Ryan, ABS Senior Vice President and Chief Technology Officer.

Reactor Reuse Considered in Business Model

The study also examined a business model in which the reactor is treated as a long-term energy asset rather than being tied exclusively to a single vessel.

Under the model, the reactor could potentially be removed from the first vessel at the end of its service life and installed on a second vessel. The potential reuse of the reactor was factored into the residual value assessment of the vessel.

“This study provides a quantitative basis for discussing nuclear propulsion in commercial shipping. Blossom Energy contributed its HTGR reference design to the study, and we will continue to work with ABS and industry partners to build the technical and regulatory foundation needed for practical application,” said Shimpei Hamamoto, CEO of Blossom Energy.

ABS said its work on the study forms part of its broader activities supporting the development of nuclear technologies for marine and offshore applications.