Energy security

 

Why nuclear power would be catastrophic for the shipping industry

Nuclear power being used to propel ships could be catastrophic, according to one of the most famous names in shipping, but the damage would be to the fundamental shipping markets rather than the usual environmental concerns about using atomic energy.

Speaking at a shipping webinar organised by the Norwegian Business Association Singapore yesterday, Andreas Sohmen-Pao, the chairman of BW Group, discussed multiple fuels of the future. On nuclear, he warned of the potentially huge market shifts the fuel could bring to shipping.

Nuclear power for shipping has been making headlines this year, and Sohmen-Pao said BW had looked at three nuclear-related companies recently.

On the possible advent of nuclear powered ships becoming widespread in merchant shipping, Sohmen-Pao said: “The change in the industry is going to be massive and maybe catastrophic because you will have ships going 50% faster because the fuel is essentially free once you’ve paid the up front capex investment and the tanks will be empty because you will have cheap electricity around the world without intermittency.”

He argued that in the advent that safe nuclear technology is developed on land and at sea there would be far less ships needed as vessels would travel faster and they would not be needed to transport energy. Approximately 40% of the world’s fleet today carries energy.