Britain cannot match China’s shipbuilding volume or Russia’s accumulated experience with nuclear-powered surface vessels. But it can draw on 70 years of naval nuclear experience, world-leading strengths in maritime law, regulation and insurance, and specialist capabilities in fuel production and high-integrity engineering, according to a new report released by the Policy Exchange.

UK’s think tank Policy Exchange argues that UK can convert this inheritance into industrial and strategic advantage by positioning itself at the centre of an allied maritime nuclear market.

Recent global advances in maritime nuclear present significant commercial opportunities in shipping, nearshore infrastructure and industrial energy security, but deployment will depend on resolving legal and regulatory questions around safety, licensing, liability and insurability.

The report argues that Britain can help build a competitive ecosystem for deploying the technology by shaping the rules, managing the risks, and contributing specialised capabilities to allied programmes.

A civil nuclear-powered ship would require a flag administration capable of both registering the vessel and providing confidence that the ship, reactor, crew, operator, and maintenance arrangements are within a coherent safety and regulatory framework.

The flag state would need to coordinate with nuclear regulators, class societies, insurers, port authorities and safeguards bodies.

According to the report, Britain does not need to dominate every part of the maritime nuclear supply chain to lead the next era of the market. It needs to help create the conditions for the technology to be licensed, insured and deployed at a commercial scale.

That is one of the central opportunities identified in Policy Exchange’s new report, Powering the Future: Leveraging the UK’s Nuclear and Maritime Heritage.

The paper argues that the UK can turn its nuclear experience and maritime strengths into a valuable role within an emerging global market. 

The think tank says the nation retains important capabilities across nuclear engineering, maritime regulation, law, insurance, standards-setting, high-integrity manufacturing and systems integration and has an opportunity to rebuild and connect them around a new global market. London remains a global center for maritime services, while the UK has deep experience in nuclear safety, through-life support and the governance of technically demanding assets.

Those capabilities can make the UK a valuable global partner within a wider allied delivery model, supplying high-value components, engineering and assurance services even where final vessel assembly takes place in allied shipyards.

Mikal Bøe, chief executive officer of CORE POWER, said: “Policy Exchange has asked the right question: not whether Britain should dominate every part of the maritime nuclear supply chain, but where it can become a valuable global partner.

“The UK has the opportunity to rebuild its world-class strengths in nuclear engineering, maritime systems integration, international standards-setting, law, and insurance. Those capabilities can help turn exciting new technology combinations into affordable energy, enhanced national security and tens of thousands of high-quality jobs.

“The next step is coordinated action: a clear route from concept to operation, distinct but interoperable pathways for floating nuclear power plants and nuclear-powered commercial ships, and a practical UK-US program covering regulation, port access, liability, workforce and demonstrator projects. Britain should help write the rules of this market, not wait to follow them.”

The decisions to take now

The report points towards several practical priorities:

  • Expand the National Shipbuilding Office, or create a dedicated Civil Nuclear Maritime Regulatory Office, to provide a clear government “front door” and route from concept to commercial operation;
  • Publish a licensing roadmap and a UK Nuclear Maritime Code, with distinct but interoperable pathways for floating nuclear power plants and nuclear-powered ships;
  • Establish predictable liability and insurance arrangements that allow risks to be clearly allocated, understood and priced;
  • Convert UK-US political intent into a formal civil nuclear maritime work program covering regulation, port access, safeguards, fuel, workforce and demonstrator projects;
  • Develop a specialist British role in high-value manufacturing, systems integration, passive-safety certification and digital lifecycle assurance; and
  • Coordinate UK leadership through the IMO and IAEA, supported by industry testing of emerging rules.