The world is about to get its first international rulebook for nuclear-powered ships and floating power plants. On August 26-27, 2026, the United States will host the ministerial launch of the International Atomic Energy Agency's (IAEA) new initiative called Atomic Technologies Licensed for Applications at Sea (ATLAS) in Washington, D.C. This framework addresses the legal and regulatory complexities that have prevented nuclear technology from being deployed at sea, opening the door to a new era of maritime energy.

The timing is significant. As artificial intelligence (AI) data centers consume ever-increasing amounts of electricity, and as shipping companies face pressure to decarbonize their fleets, small modular reactors (SMRs) are emerging as a potential game-changer. The ATLAS initiative is technology-neutral and focuses on establishing the highest standards for safety, security, and nonproliferation, according to the Department of Energy.

What Is the BANDI Reactor, and How Does It Work?

South Korea's KEPCO E&C is leading development of a specific SMR design called BANDI, a pressurized light-water reactor tailored for small-scale power networks. The name comes from the Korean word for "tiny fireflies," reflecting the reactor's compact, distributed nature. A single BANDI module produces 60 megawatts of electrical output, enough to power approximately 150,000 homes.

Rather than inventing entirely new nuclear technology, KEPCO E&C engineers adapted proven hardware from large commercial land-based reactors and scaled down key components into a single compact containment vessel. This design choice reduces technical risk and keeps development costs low. The reactor's core is engineered to operate continuously for 60 years without major structural overhauls.

"BANDI is a small nuclear reactor plant with a thermal output of 200 MW and an electricity output of 60 MW that can generate the energy needed for electricity and heating free of GHG emissions in remote areas such as small cities, isolated islands, and deserts," explained KEPCO E&C.

KEPCO E&C, Company Statement

The reactor uses a single-loop design for its Reactor Coolant System, with the reactor vessel and steam generator directly connected by nozzles. This semi-integral arrangement simplifies the overall system and reduces the footprint needed aboard a ship.

How Do Engineers Address the Challenges of Putting a Nuclear Reactor on a Ship?

Installing a nuclear reactor on a vessel presents unique engineering challenges that land-based reactors never face. When a ship tilts in rough seas, the liquid coolant inside the reactor moves differently than it would in a stationary facility. KEPCO E&C addresses this by using proven physical containment boundaries and passive cooling systems that function without external electric power, meaning the reactor can cool itself even if all ship systems fail.

Naval architects must also contend with weight distribution and radiation shielding. Heavy radiation shields protect crew members from exposure, but this shielding adds significant weight to one location on the vessel. Engineers must adjust the ship's overall balance and ballast systems to ensure the vessel remains stable in rough weather while preserving enough space for cargo decks.

The propulsion system itself works differently on a nuclear-powered ship compared to traditional diesel vessels. Modern commercial ships use massive diesel engines linked directly to a propeller shaft. A nuclear-powered vessel separates heat generation from physical propulsion. The BANDI reactor uses atomic fission to heat water and generate high-pressure steam, which spins a turbine generator to create electricity that drives electric motor propellers.

What Are the Key Applications for Maritime Nuclear Technology?

The ATLAS initiative is not limited to cargo ships. The framework addresses a range of advanced applications that could transform how the world generates and distributes energy:

• Floating Nuclear Power Plants (FNPPs): These could provide electricity to remote or coastal communities and support industrial activities like seawater desalination and oil and gas production.
• Civil Nuclear-Powered Ships: Container vessels and other commercial cargo ships could operate without refueling for years, reducing emissions and improving energy security.
• Distributed Power and District Heating: KEPCO E&C specifically targets niche markets such as distributed power sources, district heating systems, and nuclear-renewable energy hybrid systems that compete with neither large nuclear reactors nor thermal power plants.
• Disaster Response Infrastructure: FNPPs could provide new flexibility for disaster response and recovery by delivering power to affected regions quickly.

IAEA Director General Rafael Mariano Grossi emphasized the urgency of this transition. "The global maritime sector is at a critical turning point, facing urgent pressure to sustain long-distance, high-speed operations while ensuring reliability and energy security," he stated. "Nuclear energy is fast emerging as a game-changer. Small modular reactors offer a safe and viable option for maritime transport and offshore energy systems, delivering high energy density and long operating cycles that eliminate the need for frequent refueling".

What Is the Timeline for BANDI Development and Deployment?

KEPCO E&C is moving forward with a phased approach. The company plans to complete preliminary technical plans and submit a request for state funding in early 2027. If government officials approve the proposal, full-scale engineering development will begin in 2029. This timeline reflects the careful, methodical approach required for nuclear technology development, where safety and regulatory approval are paramount.

Leading up to the ATLAS launch, the United States will hold an "Industry Day" on August 25, 2026, serving as a platform for America's leading nuclear and maritime companies to showcase cutting-edge technologies. This event will highlight American innovation and underscore U.S. energy dominance in support of the global expansion of civil maritime nuclear applications.

How to Prepare for the Maritime Nuclear Era

For companies, policymakers, and industry leaders interested in participating in this emerging sector, several steps can help position them for success:

• Attend Industry Events: The August 25 Industry Day in Washington, D.C., provides a direct opportunity to network with nuclear and maritime leaders and learn about cutting-edge technologies being developed by American companies.
• Engage with Regulatory Frameworks: Understanding the ATLAS initiative and its safety, security, and nonproliferation standards is essential for any organization planning to deploy maritime nuclear technology. The IAEA's framework will shape how projects are approved globally.
• Monitor Development Timelines: KEPCO E&C's preliminary technical plans are expected in early 2027, followed by full-scale engineering development in 2029. Companies should track these milestones to understand when commercial deployment might become feasible.
• Explore Hybrid Applications: Beyond traditional shipping, consider how floating nuclear power plants could serve your region's energy needs, particularly in remote areas, coastal communities, or industrial applications requiring desalination or heat.

The convergence of maritime nuclear technology and AI energy demands creates a unique moment. As data centers consume unprecedented amounts of electricity and shipping companies face decarbonization pressure, nuclear-powered vessels and floating power plants offer a path forward that is both carbon-free and operationally efficient. The ATLAS framework removes a major regulatory barrier, and designs like BANDI demonstrate that the technology is moving from concept to engineering reality.

The success of this transition will depend on strong global partnerships and close collaboration among IAEA Member States, the International Maritime Organization, port authorities, regulators, and industry players. This international approach is critical for ensuring the credibility, scalability, and long-term impact of nuclear power in the maritime domain.