Offshore Power Systems

Offshore Power Systems
Company type	Joint venture
Industry	Nuclear power
Founded	1970
Founder	Westinghouse Electric Company and Newport News Shipbuilding and Drydock (part of Tenneco)
Defunct	1984
Headquarters	Jacksonville, United States
Products	Floating nuclear power plants
Number of employees	231 (1981)

Offshore Power Systems (OPS) was established in 1970 as a collaborative enterprise between Westinghouse Electric Company, known for constructing nuclear facilities, and Newport News Shipbuilding and Drydock, which had recently become part of Tenneco. The partnership aimed to design and produce floating nuclear power plants based in Jacksonville, Florida.

History

The pioneering floating nuclear power station, the MH-1A, was developed by Martin Marietta for the US Army during the early 1960s. Housed within a repurposed Liberty ship hull, it generated power from 1968 until 1975 in the Panama Canal Zone, delivering a modest output of 10 megawatts—significantly less than the anticipated 2,300 megawatts planned for OPS units.

In 1969, Richard Eckert from Public Service Electric and Gas Company (PSE&G) highlighted the scarcity of feasible sites for new power plants, predominantly located near the Atlantic Ocean. Westinghouse initiated OPS in 1970 based on two key considerations: nuclear plants were typically custom-designed, and local opposition was intense near proposed construction zones. By producing standardized reactors en masse at a centralized manufacturing site and positioning plants offshore, the strategy aimed to lower expenses, accelerate project timelines, and reduce neighborhood resistance. PSE&G marketed this concept as the Atlantic Nuclear Power Plant. In 1972, PSE&G placed orders for two reactors rated at 1,150 megawatts each and added two more in 1973, targeting operational status by the mid-1980s. OPS set up its production operations at the Port of Jacksonville.

The facility design featured dual reactors situated on a fabricated steel platform anchored offshore in the Atlantic Ocean. This platform was shielded by an enormous concrete breakwater composed of 18,000 dolosse blocks, each weighing approximately 80 tons. These structures were engineered to endure severe weather events such as hurricanes and tornadoes, moderate seismic activity, as well as impacts from tanker vessels. The completed power plant modules were intended to be transported to their offshore sites using ocean tugboats.

Opposition

The initiative encountered resistance both locally and nationally due to apprehensions about nuclear safety. Among the opponents was Jacksonville resident Joe Cury, who actively voiced concerns at public meetings. Additionally, consumer advocate Ralph Nader briefly participated in these protests.

Construction

The manufacturing plant's construction was estimated at $200 million and projected to generate approximately 10,000 jobs by 1976. OPS and PSE&G formalized agreements for two plants; PSE&G financed engineering efforts, licensing procedures, and initial startup expenses. In 1972, Westinghouse appointed Zeke Zechella as president of OPS.

OPS purchased over 850 acres on Blount Island from the Jacksonville Port Authority at a rate of $2,000 per acre. The site underwent significant development including land reclamation with clean fill, installation of utilities, roadways, and a connecting bridge. The floating platform designed for the plant measured 400 feet by 400 feet—roughly equivalent to three football fields—and the adjacent harbor basin was dredged to a depth of 40 feet. A $17 million overhead bridge crane—the largest globally at that time—was installed; it stood 130 feet tall with a span of 675 feet and possessed a lifting capacity of two million pounds to accommodate reactor containment domes. More than 1,000 workers contributed during construction phases, with total investments reaching $125 million.

Commitment letters were received from utilities such as the Southern Company in Atlanta and JEA in Jacksonville; however, no plants were ultimately constructed. On December 17, 1982, the NRC granted a manufacturing license authorizing production of up to eight OPS reactors.

Cancellation

Despite OPS not having federal authorization during the 1970s, the main factor behind its downfall was the 1973 oil crisis. The surge in oil prices encouraged energy conservation and lowered electricity consumption, prompting PSE&G to postpone their nuclear plant orders by two years. Following the embargo, persistently elevated oil costs combined with the 1973–75 recession further deteriorated economic conditions. President Jimmy Carter’s halt on nuclear facility construction led to workforce reductions at OPS. New Jersey Governor Brendan Byrne expressed opposition to the floating reactors, criticizing the NRC for inadequate safety evaluations. In 1978, PSE&G terminated OPS contracts, leaving the company without clients while it continued pursuing Nuclear Regulatory Commission approval for upcoming projects. After the 1979 Three Mile Island accident, regulatory safety standards became more stringent. Zeke Zechella retired from both OPS and Westinghouse in 1980 after a 27-year tenure.

By the end of 1981, OPS had a staff of 231 employees awaiting regulatory clearance. Jacksonville filed a lawsuit against OPS and the Port Authority seeking nearly $38 million related to property issues but was unsuccessful. Although Westinghouse eventually secured NRC approval for as many as eight plants, no utility companies expressed interest.

On February 17, 1984, Westinghouse declared that OPS would cease operations by September due to insufficient market demand and redundant technology. The company was paying $1 million annually in property taxes and sold the Blount Island facility to Gate Petroleum for $17 million in 1985.

Reactor data

Reactor unit	Reactor type	Net capacity	Gross capacity	Construction started (Planned)	Electricity Grid	Commercial Operation	Shutdown
Floating-1	PWR	1,150 MW	1,211 MW	Cancelled on 01.01.1979

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