Initial work demonstrated the feasibility of building a 100-megawatt reactor measuring seven feet by 10 feet, which could fit on the back of a large truck, and is about 10 times smaller than current reactors, McGuire told reporters.
"We can make a big difference on the energy front," McGuire said, noting Lockheed's 60 years of research on nuclear fusion as a potential energy source that is safer and more efficient than current reactors based on nuclear fission.
Lockheed sees the project as part of a comprehensive approach to solving global energy and climate change problems.
Compact nuclear fusion would produce far less waste than coal-powered plants since it would use deuterium-tritium fuel, which can generate nearly 10 million times more energy than the same amount of fossil fuels, the company said.
Ultra-dense deuterium, an isotope of hydrogen, is found in the earth's oceans, and tritium is made from natural lithium deposits.
It said future reactors could use a different fuel and eliminate radioactive waste completely.
McGuire said the company had several patents pending for the work and was looking for partners in academia, industry and among government laboratories to advance the work.
Lockheed said it had shown it could complete a design, build and test it in as little as a year, which should produce an operational reactor in 10 years, McGuire said. A small reactor could power a U.S. Navy warship, and eliminate the need for other fuel sources that pose logistical challenges.
U.S. submarines and aircraft carriers run on nuclear power, but they have large fission reactors on board that have to be replaced on a regular cycle.
"What makes our project really interesting and feasible is that timeline as a potential solution," McGuire said.