The administration of U.S. President Donald Trump has agreed to work with a British company to build a merchant fleet powered by small modular reactors (SMRs), a push aimed at securing technological dominance in shipping against China's fast-growing shipbuilding industry. Notably, the plan calls for tapping South Korea's shipbuilding capabilities.
Core Power, a British nuclear shipping company, said on the 24th that it had signed a public-private agreement with the Maritime Administration (MARAD) under the U.S. Department of Transportation to advance nuclear-powered merchant vessels. Core Power operates as a platform company that links reactor technology firms and large shipyards across the entire process, from hull construction to reactor installation and operation. The agreement aims to design a regulatory framework that allows for fast-track permitting and to establish safety standards. The target for starting construction of the vessels is 2028. Core Power plans to establish a dedicated nuclear shipyard in the United States that will handle reactor installation, commissioning and inspection.
The two countries agreed to focus on developing nuclear-powered vessels, seen as a next-generation eco-friendly ship type, in an effort to revive domestic shipbuilding industries that have been squeezed by China. Nuclear-powered ships are faster and can carry more cargo, but high technological requirements and construction costs have been cited as drawbacks. Those same barriers, however, could help widen the gap with China. Stephen Carmel, head of the Maritime Administration, said in an interview with the Financial Times that the United States needs to shift the terms of competition in its favor if it is to beat China.
Core Power has signaled it could assign construction work to South Korea, drawing attention to whether HD Hyundai Group, an existing partner, will take on a role. Mikal Bøe, founder and chief executive of Core Power, outlined the cooperation plan, saying that Japan and South Korea can accelerate conventional ship construction while the United States can build specialized nuclear integration and life-cycle capabilities.
Core Power has attracted $200 million in investment from Japanese companies including Mitsui, Mitsubishi and Sumitomo, and is jointly developing a molten salt reactor, a fourth-generation marine SMR, with HD Korea Shipbuilding & Offshore Engineering. In announcing the cooperation plan, Core Power also referred to MASGA, or Make American Shipbuilding Great Again, a term coined when the Korea-U.S. shipbuilding cooperation project was proposed.
