The commercial shipping industry is moving from conceptual studies toward route specific testing of nuclear propulsion, with Hyundai Glovis and U.S. logistics company Liberty Global Logistics (LGL) now examining whether a small modular reactor-powered Pure Car and Truck Carrier could operate between South Korea and the United States.
The companies signed a memorandum of understanding to jointly assess the technical, regulatory and operational conditions required for commercial deployment of an SMR powered PCTC. The study will divide the work between the two markets, with Hyundai Glovis assessing Korean ports, regulations and operating requirements, while LGL will examine the corresponding U.S. framework.
The move comes as shipping faces increasingly demanding decarbonization requirements. The International Maritime Organization’s 2023 greenhouse gas strategy calls for international shipping to reach net zero emissions by or around 2050, with total annual GHG emissions targeted to fall by at least 20%, striving for 30%, by 2030 and at least 70%, striving for 80%, by 2040 compared with 2008. The strategy also calls for zero or near zero emission technologies, fuels and energy sources to account for at least 5%, striving for 10%, of shipping’s energy use by 2030.
For long distance vehicle carriers, those targets create a particularly difficult technology question. PCTCs require substantial onboard energy while operating on international routes, and their large enclosed cargo volumes place constraints on propulsion and fuel storage systems. Nuclear propulsion potentially changes that equation by replacing large quantities of conventional marine fuel with a compact energy source capable of operating for extended periods without conventional refueling.
Hyundai Glovis has already moved beyond a purely theoretical assessment of nuclear powered vehicle carriers. At Posidonia 2026, Lloyd’s Register awarded an Approval in Principle for a PCTC concept developed through a joint development project involving Hyundai Glovis, Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering, G Marine Service and the Korea Atomic Energy Research Institute.
The project examined integration of an advanced SMR, specifically a molten salt reactor concept, into a large vehicle carrier. LR said the work covered reactor arrangement and segregation, shielding, cargo deck configuration, vessel stability and trim, propulsion and power delivery, as well as preliminary hazard identification and risk assessment.
The AiP is an important engineering milestone, but it should not be confused with regulatory approval to build or operate a commercial nuclear vessel. It indicates that a classification society has assessed the conceptual design against relevant technical and safety considerations. The subsequent MOU with LGL moves the question into a different phase: whether such a vessel could actually operate on a defined international trade route.
That distinction is central because nuclear shipping requires several regulatory systems to converge. A technically feasible reactor and ship design still needs approval for the vessel, nuclear installation, port calls, crew arrangements, security, liability and emergency response.
Lloyd’s Register has identified these issues as major requirements for commercial maritime nuclear deployment. Its 2025 guidance on nuclear energy in maritime specifically addresses regulatory, technical, operational and financial considerations, including insurance and liability issues.
The Korea U.S. route provides a practical test case because the feasibility of nuclear propulsion depends as much on port access as on the vessel itself.
Under the new agreement, Hyundai Glovis will examine conditions at Korean ports, while LGL will assess the U.S. regulatory and operational environment. The U.S. review initially includes ports on the West Coast, with consideration of federal and state approvals, port infrastructure and operational requirements.
For conventional vessels, route selection is largely determined by cargo flows, port infrastructure, fuel availability and economics. A nuclear powered vessel introduces another layer. Each port jurisdiction potentially becomes part of the vessel’s regulatory operating envelope.
That issue has become more prominent as international maritime regulators work to develop rules for nuclear propulsion. The International Maritime Organization agreed in January 2026 on a workplan covering safety rules for ships using nuclear power, alongside other emerging propulsion technologies. The workplan envisages development of a revised Nuclear Code and amendments to SOLAS Chapter VIII, with adoption targeted for 2030.
The timing creates a potential mismatch between vessel development and regulatory readiness. A ship designed for commercial deployment in the early 2030s could be entering service as the international framework for nuclear commercial shipping is still being developed.
Nuclear propulsion could also alter the economics of vehicle carriers by eliminating conventional fuel tanks and exhaust treatment systems. Hyundai Glovis has argued that the resulting reduction in equipment could create additional flexibility for cargo loading.
The underlying engineering question is more complicated. A marine reactor requires shielding, containment, safety systems, cooling and control equipment, and these systems occupy space and add weight. LR’s PCTC study specifically examined how the reactor installation would affect cargo deck layout, vehicle capacity, vessel stability and trim.
The relevant commercial metric is therefore not whether an SMR eliminates fuel tanks, but whether the complete nuclear power system creates a favorable balance between energy density, reactor equipment, shielding, safety systems, cargo capacity and vessel economics.
That assessment will become more meaningful as the Hyundai Glovis and LGL feasibility study develops. A nuclear vessel that requires substantially different port infrastructure or carries less revenue generating cargo could offset some of the propulsion system’s energy advantages.
The maritime project is also developing alongside a broader expansion of South Korea’s SMR policy and industrial strategy. South Korea’s SMR Development Promotion and Support Act entered into force on September 11, 2026, establishing a government framework to support SMR research, development and demonstration and facilitate commercialization. The legislation defines an SMR as a reactor with up to 300 MW of electrical capacity per module or up to 1,000 MW of thermal output, subject to specified characteristics.
That policy environment matters for maritime applications because commercial ship deployment requires more than a reactor technology. It requires a domestic supply chain, regulatory expertise, manufacturing capability and a licensing pathway capable of connecting nuclear and maritime requirements.
South Korea’s K Moonshot program has separately identified SMR powered vessels as a technology development area, reflecting an attempt to combine the country’s nuclear engineering and shipbuilding capabilities.
The Hyundai Glovis project therefore sits at the intersection of two industrial systems that South Korea already has substantial capacity in: commercial shipbuilding and nuclear technology. The challenge is translating that industrial base into a vessel that can operate under international nuclear and maritime rules.
The strongest case for nuclear propulsion is its ability to provide high energy density without the direct carbon emissions associated with fossil fuel combustion during operation. But describing a nuclear vessel simply as a zero carbon ship would overlook the wider lifecycle and regulatory context.
The IMO’s decarbonization framework increasingly evaluates fuels and energy sources across their lifecycle, while nuclear propulsion introduces questions around fuel production, reactor manufacturing, spent fuel management, decommissioning, safeguards and liability that do not arise in the same form for conventional ships. The IMO is already developing its regulatory framework around the safety implications of nuclear powered vessels.
The insurance market is another unresolved component. Lloyd’s Register has highlighted the need for clear liability and insurance arrangements for commercial nuclear vessels, while NorthStandard has noted limitations in existing marine insurance structures for nuclear risks.
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