The US Maritime Administration (MARAD) has teamed up with CORE POWER in an agreement aimed at accelerating a US-flagged fleet of nuclear-powered merchant ships.

The memorandum of cooperation brings MARAD and the UK-founded nuclear technology company together to address the obstacles that have kept nuclear propulsion largely confined to naval vessels. CORE POWER is targeting first construction from 2028, although the agreement does not commit MARAD to funding, procurement or acquiring vessels.

The initiative is part of the Trump administration’s effort to rebuild American maritime capability, as Washington continues to argue that China’s dominance of global shipbuilding poses an economic and national security challenge. It also comes as governments and industry look for ways to reduce dependence on existing shipbuilding hubs and to rebuild maritime industrial capacity in sectors that have long since shifted overseas.

“China is already moving toward nuclear-powered commercial shipping. That should focus minds in Washington,” said CORE POWER founder and CEO Mikal Bøe.

Instead of competing directly with Asian shipyards on conventional vessel construction, CORE POWER envisions allied yards, particularly in Japan and South Korea, building hulls and marine systems while nuclear integration, fuelling, testing and through-life support capability is developed in the US.

MARAD administrator Stephen Carmel said nuclear propulsion should be treated as a serious opportunity and approached as a complete system covering safety, licensing, investment and operations.

The agreement will establish a forum to address port access, workforce credentialling, reactor fuel and lifecycle services, insurance, finance and industrial capacity, underscoring that any commercial nuclear shipping model would need more than a reactor design to move forward.

A revival of nuclear propulsion faces major challenges over liability, insurance, port acceptance and regulation. The International Maritime Organisation is revising its 1981 nuclear merchant ship safety code, with adoption targeted for 2030. The International Atomic Energy Agency is also launching its ATLAS initiative in Washington this week to bring nuclear and maritime regulators together.

MARAD’s move follows a request for information in May on commercially viable small modular reactors for marine transportation. The agency has also signed agreements with the ports of Long Beach and Corpus Christi to examine nuclear applications in the maritime sector.

In related news, Splash understands that Maersk will announce next week a new initiative with the ports of Felixstowe and Charleston exploring the development of a transatlantic nuclear corridor. The project will examine the infrastructure, regulatory frameworks and stakeholder cooperation required for future nuclear-powered commercial shipping between the UK and the US. Maersk, CORE POWER, Lloyd’s Register and Rotterdam have already examined the feasibility of nuclear-powered feedership calls in Europe.