The U.S. Department of Transportation's Maritime Administration and the Port of Long Beach have signed a Memorandum of Cooperation aimed at advancing small modular reactor technology for commercial vessels and port operations, moving a previously low-profile alternative-power effort for cargo shipping into the nuclear sector.

The agreement focuses on the development and testing of small modular reactor, or SMR, technology that could support maritime transportation and port energy needs. SMRs are compact nuclear reactors generally designed to produce up to 300 megawatts of electricity, a fraction of the output of conventional nuclear plants, with modular construction intended to reduce costs and deployment times.

"This first-of-its-kind partnership with Marad allows us to leverage strong federal leadership and private sector innovation to catalyze SMR technology as we safely and securely support the next generation of shipping," Port of Long Beach Chief Executive Noel Hacegaba said at a signing ceremony at the port this week. "We're building the port of the future in Long Beach, where we've led in global trade by moving $300 billion in cargo annually to support 2.7 million American jobs, and we will continue our tradition of leadership as we partner to advance nuclear energy in maritime and beyond."

The port also disclosed that it recently signed a lease agreement with BlueCore Energy Inc., a private-sector manufacturer located on port property that is developing barge-mounted reactor technology.

Marad issued a Request for Information in May on the development of U.S.-built commercial SMR technology for the marine transportation system.

"This milestone agreement with the Port of Long Beach brings cutting-edge Small Modular Reactor technology into active testing," Marad Administrator Stephen Carmel said at the signing. "It ensures our maritime supply chains stay operational under any contingency while training the next generation of high-skilled American mariners."

The pact comes amid a broader shift toward alternative power in shipping, where vessel fuel and propulsion options range from traditional bunker diesel to hybrid dual-fuel systems using liquefied natural gas, ammonia and even sail. Nuclear propulsion, long proven in naval submarines and aircraft carriers, offers zero operational greenhouse gas emissions and high energy density, allowing vessels to travel long distances without refueling. The International Maritime Organization adopted a revised strategy in 2023 targeting net-zero emissions from international shipping by or around 2050, intensifying the search for scalable zero-carbon propulsion.

If development succeeds, the effort could lead to operation of the first domestic nuclear-powered merchant ship since the S.S. Savannah in 1959. The Savannah, a demonstration vessel, was retired in 1972 after limited commercial service, illustrating the historical hurdles of cost, regulatory complexity and public acceptance that nuclear merchant shipping has faced. Russia currently operates one nuclear commercial vessel, the Sevmorput, along with a fleet of nuclear-powered civilian icebreakers.

"This Memorandum of Cooperation with Marad positions the Port of Long Beach to help develop energy sources for the goods movement industry while maintaining our role as the premier gateway for trans-Pacific trade," said Long Beach Board of Harbor Commissioners President Frank Colonna. "This aligns well with our track record of testing and demonstrating innovative new technologies at the Port of Long Beach."

The project is advancing as the Port of Long Beach, together with neighboring Los Angeles the busiest U.S. port complex, forecasts that container volume will double by 2050.

Under the agreement, the port and Marad will work with the Coast Guard, the Department of Energy and the Nuclear Regulatory Commission to define the operational protocols, safety standards and inspection processes needed to support the safe arrival and servicing of SMR-powered vessels at U.S. ports. The agencies also plan to develop and share other best practices.

The Memorandum of Cooperation does not include funding or procurement requirements.

Marad homeports two Ready Reserve vessels at Long Beach, which is one of 18 designated Commercial Strategic Seaports in the United States. Those ports support military and supply chain functions during national emergencies.

The project could open the door to the use of nuclear power in the supply chain.