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Monday, January 19, 2009

A Nuclear-Powered Cruise Ship? It's Not Out Of The Question, Says Royal Caribbean CEO

Would you sail on a cruise ship powered by nuclear energy? Royal Caribbean President and CEO Adam Goldstein says the line hasn't ruled out the idea, although it remains highly unlikely anytime soon.

"I don't want to use the word never on any energy source," says Goldstein, who talked on the topic of new energy sources at a Miami conference. "The future looms, and we need to consider all our options."

Goldstein, who has played an active role in guiding the nation's energy policy as a member of the Energy Security Leadership Council, notes that nuclear powered ships face several hurdles.

"My council has wrestled with this, but there is so much bureaucratic process involved to building even one nuclear plant on the land, never mind at sea, that we're afraid that nuclear power is not going to be able to provide a very meaningful role," he says. In addition, "there is the question of consumer acceptance that would have to be explored very carefully."

That said, Goldstein says cruise lines need to look at every possibility to use less oil, which now provides the bulk of energy on ships -- not just because it's the right thing to do for the environment but because it makes good business sense.

Goldstein says the sharp drop in oil prices from a peak of nearly $150 a barrel last summer hasn't lessened the company's determination to cut its oil use. Indeed, the company recently created a new Vice President of Energy Management position so it has someone looking full time at "big picture" energy solutions, Goldstein says.

"While these gyrations (in oil prices) both up and down have been unprecedented, our expectation is that we can expect (more) price volatility going forward," he says.

Just don't expect any big announcements anytime soon. What's more, he says, the line continues to look for less revolutionary ways to cut energy use. Goldstein notes the line is experimenting with everything from more efficient propulsion systems to energy-saving hull paints and light bulbs to changes in deployments and ship operating speeds that cut energy use. The line's newest classes of ships are 25% to 30% more energy efficient than older models.

"It's incremental progress, but it's real progress," he says.

Down the road, he says, "if we can find a solution that gets us out of the fossil fuel business altogether, that would be terrific."

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