March 1 ------ New nuclear reactor technology represents a once-in-a-generation opportunity for US industrial policy, Christopher J. Wiernicki, Chairman and CEO of class society ABS, believes.
Vessels propelled by advanced small modular reactors (SMR) could act as a catalyst for the revitalization of US shipbuilding. To remind, the United States ranks 19th in the world of commercial shipbuilding and the country is seeking ways to improve this position.
Wiernicki thinks that the next step is the development of a marinized SMR demonstrator. “It is a key transformational technology. It changes the commercial model, the economics of shipping, the operation of the vessels and their design. So, while it is a global story, this is also a domestic U.S. story, bringing together national energy and economic security and acting as a catalyst for new industrial policy amid the reinvigoration of U.S. shipbuilding,” he said. “New nuclear can be highly competitive. The economics are compelling over the life of a vessel when you account for fuel differentials, the cost of compliance and residual value, it costs roughly the same as fossil option.”
ABS CEO explained that SMR technology was a huge opportunity for U.S. shipbuilding but there remained much work to support its adoption. “New nuclear could be U.S. shipbuilding’s secret weapon, but we need to invest in the technology, and we need a new nuclear playbook to make it happen. We have to separate the commercial approach from the military and land-based applications from marine and enhance public engagement and education.”
Regulation and licensing are going to be key to unlocking new nuclear’s potential, according to Wiernicki. “Current regulations are designed for large land-based reactors, specific technologies and domestic deployment. So, we need to look at the regulatory gaps and develop a dedicated framework to support SMRs and a global collaboration for international licensing standards.”
Last month, the U.S. Trade Representative (USTR) concluded that China’s ‘targeted dominance’ in maritime, logistics, and shipbuilding sectors is ‘unreasonable’ and ‘burdens or restricts U.S. commerce’. As per Ambassador Katherine Thai, who is the principal trade advisor, negotiator, and spokesperson on U.S. trade policy, the US builds less than five ships each year while China builds more than 1,700 vessels annually.
Source: offshore-energy.biz
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