Outsourcing Nuclear Dismantling

A historic dismantling of a nuclear aircraft carrier by a private firm signals a shift in U.S. Navy operations, promising $1 billion in savings.

Story Highlights

The U.S. Navy awarded a $536.7 million contract to NorthStar Maritime Dismantlement Services.
This marks the first commercial dismantling of a nuclear-powered aircraft carrier.
The project is expected to result in $1 billion in cost savings.
The dismantling is scheduled for completion by November 2029 in Mobile, Alabama.

Navy’s Strategic Shift in Dismantling Operations

The U.S. Navy’s decision to award a $536.7 million contract to NorthStar Maritime Dismantlement Services for dismantling the USS Enterprise (CVN-65) represents a significant departure from traditional government-led disposal methods. This historic shift leverages private-sector expertise in nuclear decommissioning, aiming to achieve an estimated $1 billion in cost savings compared to using public shipyards. The dismantling will take place in Mobile, Alabama, with a completion target set for November 2029.

This decision allows public shipyards to focus on fleet readiness and modernization, a crucial move as the military continues to prioritize its active fleet’s operational capabilities. By engaging NorthStar Maritime and its subcontractor, Modern American Recycling and Radiological Services (MARRS), the Navy is not only cutting costs but also setting a precedent for future commercial dismantling of nuclear carriers.

Historical Context and Dismantlement Efforts

The USS Enterprise, commissioned in 1961, was the world’s first nuclear-powered aircraft carrier. It served through pivotal military engagements, including the Cuban Missile Crisis and Operation Iraqi Freedom, before being decommissioned in 2017. This dismantling project marks the first time a nuclear-powered aircraft carrier will be commercially dismantled, showcasing the Navy’s confidence in the private sector’s capabilities to handle such complex tasks safely and efficiently.

The contract, awarded in May 2025, is underpinned by NorthStar’s experience in nuclear decommissioning, notably at the Vermont Yankee Nuclear Power Plant. The company has pledged to adhere to rigorous safety and environmental standards throughout the four-year project timeline, ensuring responsible management of hazardous and radioactive materials.

Economic and Strategic Impacts

The economic implications of this contract are substantial. It injects a significant amount of capital into both Vermont and Alabama, where NorthStar and MARRS are based. Additionally, the project frees up public shipyards to concentrate on maintaining and modernizing the current fleet, which is critical for national defense readiness. This move is anticipated to set a template for disposing of future aging nuclear carriers, such as the USS Nimitz (CVN-68).

By recycling approximately 35,000 tons of steel from the Enterprise, the Navy demonstrates a commitment to sustainability. The recycled steel will be used in building the new USS Enterprise (CVN-80), further underscoring the project’s long-term benefits for fleet modernization and resource efficiency.