Nuclear propulsion in shipping refers to the use of onboard nuclear reactors to generate heat, which is then converted into steam to drive turbines for propulsion and electricity generation. Unlike conventional fuels, nuclear energy does not rely on combustion and therefore produces no greenhouse gas emissions during operation (tank-to-wake). Modern concepts for maritime use are based primarily on Small Modular Reactors (SMRs), which are designed to be more compact, standardised, and inherently safer than traditional large-scale reactors.
Nuclear propulsion has been used for decades in military applications such as submarines and aircraft carriers, enabling long endurance, high energy density, and minimal refuelling requirements. For commercial shipping, it is now being explored as a potential solution for deep-sea segments where energy demand, range, and reliability are critical.
Main risks
As this technology develops, it will be essential for the industry to articulate the relevant risks clearly so that insurers are able to evaluate them. These include, but are not limited to, the potential for low-probability, high-consequence events, radiation and contamination risk, regulatory and liability complexity, operational and technical demands (such as crew competence), and questions of port acceptance and public perception. Each of these elements requires further examination and careful consideration.
Skuld's involvement
Skuld's involvement in nuclear propulsion is currently focused on early-stage engagement, risk assessment, and industry collaboration. As nuclear risks are excluded under current insurance frameworks, insurance represents one of the key enablers or potential obstacles to nuclear adoption in commercial shipping. Traditional P&I and H&M structures are not designed to absorb nuclear risk.
Through its participation in the Green Shipping Programme, Skuld has contributed to a pilot project on nuclear propulsion (2024/25), gaining insight into the technical, regulatory, and commercial challenges of introducing nuclear energy to commercial shipping. The project's findings on insurance are set out in the accompanying report.
Skuld recognises its critical role in this transition and is committed to contributing to an open dialogue, while ensuring that all risk elements are fully considered.
The IG Nuclear Committee
The IG Nuclear Committee was established to identify and examine the challenges facing nuclear-powered vessels. Because these challenges span both regulatory questions and the broader technical understanding needed to assess the risks, the committee has recently decided to set up a dedicated technical working group.
Skuld is an active member of the IG Nuclear Committee, and Geir Jørgensen, Head of Loss Prevention at Skuld, will chair the Nuclear Technical Working Group.
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