Engineering firm ABB has signed an agreement with Swedish nuclear technology firm Blykalla to advance the use of small modular reactors (SMRs) in the shipping sector.

The agreement builds on an MoU signed in October 2024, which focused on lead-cooled SMRs for Sweden’s clean energy needs, ABB said in an emailed statement on Wednesday.

The new deal expands the collaboration to shipping, reflecting growing interest in nuclear propulsion as an alternative power source.

Although nuclear propulsion has long been discussed as an option for commercial shipping, it has yet to gain traction, largely due to safety concerns around nuclear technology.

SMRs are seen as a potential breakthrough, offering compact designs suitable for large vessels, inherent safety features, and the ability to operate for years without refuelling.

Blykalla’s Swedish Advanced Lead Reactor (SEALER) is one such design, identified under the NuProShip I project as a strong candidate for maritime use. ABB will bring expertise in power distribution, automation and integration to support its deployment at sea.

“With our compact reactor design, we see a unique opportunity to lead the way in maritime nuclear propulsion – a solution uniquely positioned to meet the sector’s demand for clean energy,” Jacob Stedman, CEO at Blykalla, said.