Norway Emerges as Testing Ground for Commercial Nuclear-Powered Vessels: Knutsen LNG and Island Offshore SMR Concepts

Nuclear propulsion is returning to the commercial shipping agenda, with Norway emerging as a focal point for a new wave of small modular reactor (SMR) demonstration projects and research. Two nuclear-powered concept designs are now in development in Norway: a nuclear-powered LNG tanker backed by Knutsen OAS and a specialised offshore vessel being developed with Island Offshore. The work builds on the recently completed NuProShip II project, in which ship designers, class societies and operators studied how to integrate SMRs into real vessel layouts, shifting the debate from 'if' nuclear propulsion is possible to 'how' it can be implemented at scale.

Earlier merchant nuclear projects — exemplified by the 1960s US-owned NS Savannah — stalled as fossil fuels stayed cheaper and port-entry rules proved difficult to manage. Naval fleets continued to use nuclear plants, where sovereign backing absorbs costs and risks that commercial operators would not accept. Recent research, including NuProShip I and II, has focused on Generation IV and SMR designs in the 5-55MW range, with molten salt reactors (MSR), high-temperature gas-cooled reactors (HTGR) and liquid metal fast reactors all identified as candidates for different ship types.

Under NuProShip II, led by Vard and funded by the Research Council of Norway, the work covers production layouts, refuelling-port scenarios, insurance and how the regulatory framework should be shaped. Stakeholders include class societies DNV and ABS, reactor builders (Westinghouse, NuScale), Norwegian government agencies and the European Union. The concept designs are expected to become suitable for licensing applications by end-2028.

From a supply chain perspective, nuclear propulsion is considered one of the strongest technological candidates to deliver zero-carbon operation on high-tonnage mainline vessels (VLCC, ULCC, Suezmax, Capesize). Refuelling once per voyage could eliminate a major cost item in the deepsea logistics chain. However, port-entry rules, refuelling infrastructure and insurance compliance costs remain the biggest hurdles to commercial diffusion. Hyundai Mipo Dockyard's South Korea-Norway joint projects and China-based Jianxi Provincial's Cunshan trials point in the same direction.

Key Takeaways:
1. Norway is emerging as Europe's leading testing ground for commercial nuclear-powered vessels.
2. Knutsen OAS-backed nuclear LNG tanker and Island Offshore-specialised offshore vessel concepts under development.
3. Vard-led NuProShip II is focused on 5-55MW SMR designs (MSR, HTGR, fast reactors).
4. Concept designs are expected to be ready for licensing applications by end-2028.
5. Among the strongest technology candidates for zero-carbon VLCC/Suezmax/Capesize tonnage.