Czech nuclear industry celebrates success as Škoda JS joins Rolls-Royce SMR project

Škoda JS, part of the ČEZ Group, today signed a contract with UK company Rolls-Royce SMR to supply drives for small modular reactors. The contract ensures that the Plzeň-based company Škoda JS will be the exclusive designer and supplier of drives for the reactors. Each contract will be worth around one billion crowns. Industry and Trade Minister Karel Havlíček (ANO) said this at a press conference today. The first modular reactor in the Czech Republic is due to be built at Temelín in the mid-2030s.

Škoda JS will therefore be responsible for developing a prototype drive for small modular reactors and will subsequently supply them to the UK company. "The contract also includes preparations for mass production at Škoda JS and the principles of a future contract for global supplies of the drive system to all Rolls-Royce SMR reactors. In the future, this represents repeat orders worth more than one billion crowns for each individual SMR," said Škoda JS CEO Karel Bednář.

According to Rolls-Royce SMR CEO Chris Cholerton, Škoda JS has demonstrated that it is one of the few companies in Europe capable of supplying one of the power plant's most important components.

The Plzeň-based company is thus building on previously agreed cooperation with the UK company. In May, it announced that Rolls-Royce SMR had selected it as one of its two suppliers of key parts for small modular reactors. Specifically, this concerned supplies of reactor pressure vessels, their internals and other primary circuit equipment.

According to ČEZ, a global supply chain for small modular reactors is currently being formed, making it necessary for Czech companies to join it as early as possible. "The opportunity is unique. If they manage to join this chain right at the outset, they can secure attractive contracts for decades to come," said ČEZ CEO Daniel Beneš.

He recalled that ČEZ entered into a strategic partnership with Rolls-Royce SMR in 2024 and acquired an approximately 20% stake in the UK company. According to Beneš, ČEZ should therefore play a strategic role in involving Czech companies in the supply chain for the development of modular reactors.

According to Bidli analyst Petr Špirit, the contract is an important step for the Czech nuclear industry. For Škoda JS itself, he said, it offers the opportunity to gain a stronger position in the global supply chain for a new generation of nuclear technologies.

However, the impact could be even broader. "Dozens of Czech companies from engineering, energy, automation, component manufacturing, design and servicing could subsequently become involved in the production of small modular reactors. Moreover, if Rolls-Royce SMR gains a stronger foothold in global markets, Czech industry could secure long-term export opportunities and supplies worth tens of billions of crowns. The key will then be whether Czech companies can become as involved as possible in the global chain at the early stage of this technology's development," Špirit noted.

ČEZ, in cooperation with Rolls-Royce SMR, plans to build up to three gigawatts of small modular reactors in Czechia. The first Czech reactor is expected to be built at the Temelín site in the mid-2030s. Modular reactors are also being prepared in Dětmarovice in the Karviná region and Tušimice in the Chomutov region. However, the first reactor on which the two companies will cooperate will be built at the Wylfa site in the UK.

Modular reactors can be mass-produced in factories and gradually concentrated in larger numbers at a single site in individual units. According to nuclear energy experts, they differ from large nuclear units mainly in their lower output and faster, simpler construction. Their operation, by contrast, could be similar.