A nuclear-powered LNG carrier could cut total ownership costs by up to 15% against a conventional LNG-fuelled ship under a modelled greenhouse-gas pricing regime, despite requiring about 2.5 times the initial investment, a study by US classification society ABS, Japanese reactor developer Blossom Energy has found.
The study examined a 174,000-cbm LNG carrier powered by Blossom Energy’s 20-25 MWe high-temperature gas-cooled reactor. The model assumed the vessel would enter service in 2040, operate for 25 years and use a 5% discount rate.
Under the assumed IMO Net-Zero Framework pricing scenario, total cost of ownership was 15% lower when surplus compliance credits through fleet pooling were included and 4% lower without pooling.
Without GHG-related charges, the current first-of-a-kind reactor cost would not be competitive with a conventional LNG carrier. Serial production, design standardisation and optimisation of the vessel for reactor installation were identified as ways to reduce costs.
The reference reactor uses graphite as a moderator and helium as a coolant. The modelled system measures about 17 metres by 15 metres by 22 metres and weighs around 6,000 tonnes.
The assessment also covered vessel arrangement, electric propulsion, batteries, emergency propulsion and refuelling intervals.
The economic model assumes a 50-year reactor life, twice the vessel’s 25-year operating life. The reactor could therefore be removed from the first ship and installed on a second vessel, with the potential reuse included in the residual-value calculation.
The work remains a technical and economic assessment rather than a vessel order or construction programme. Safety regulation, port access, nuclear fuel supply, insurance and initial capital requirements remain issues for commercial deployment.
Blossom Energy was established in Japan in January 2022 and is headquartered in Tokyo. It develops high-temperature gas-cooled reactor technology for power generation and industrial heat applications, as well as graphite thermal-energy storage systems.
ABS was founded in 1862 and is headquartered in Spring, Texas. It provides classification, certification and technical advisory services to the marine and offshore industries.