Czechia's ČEZ to buy multibillion-crown stake in Rolls-Royce SMR, cooperate on reactors

State-controlled energy company ČEZ has signed a strategic partnership with Rolls-Royce SMR to develop modular reactors. It will buy a roughly 20% stake in the British company for several billion crowns. The announcement was made today by Prime Minister Petr Fiala (ODS) and representatives of both companies. The first modular reactor in the Czech Republic is expected to be built at the Temelín nuclear power plant in the first half of the 2030s.

The partnership, which is being planned for several decades, envisages ČEZ being directly involved in developing the new modular reactor technology and manufacturing the reactors on a global scale. This will not be simply a purchase or delivery of ready-made equipment.

„This is an important moment for ensuring the Czech Republic’s energy security. At the same time, we have a unique opportunity to take part in developing a new modular reactor technology. We do not want merely to buy technology; we also want to be involved in its development and manufacture,“ Fiala said of the agreement.

He said Czech companies would have opportunities not only in developing the equipment but also in the supply chains.

According to ČEZ, the small modular reactor developed by Rolls-Royce SMR is a pressurised water reactor that uses both active and passive safety features. It is expected to have an electrical output of 470 megawatts, and the reactor is designed to operate for at least 60 years.

ČEZ plans to build modular reactors with a combined capacity of three gigawatts by 2050. The existing power plants at Dukovany and Temelín each have a capacity of around two gigawatts. According to previous statements by ČEZ, modular reactors are intended primarily to supply heat and could be built at sites of current coal-fired power plants, such as Prunéřov or Dětmarovice. ČEZ CEO Daniel Beneš said the cost of a modular reactor would be comparable to that of a large unit, in proportion to the modular reactor’s lower output. ČEZ is currently preparing to build two large reactors, each with a capacity of more than 1000 MW, at Dukovany. At current prices, the government estimates each will cost 200 billion crowns.

ČEZ considered a number of foreign companies for the construction of modular reactors and chose Rolls-Royce SMR over, for example, Westinghouse and EDF, both of which also bid to build large units. According to Beneš, from the outset the Czech company aimed to be involved in developing and manufacturing the technology as well. He said the partnership with Rolls-Royce SMR would give the company access to projects in the Czech Republic and, subsequently, abroad. He did not rule out the possibility of increasing its stake in the British company further.

The British side also welcomed the partnership. „This is a milestone in the history of Czech-British economic cooperation,“ said British Ambassador to the Czech Republic Matt Field. Rolls-Royce CEO Tufan Erginbilgic said the partnership offers both companies an opportunity to build a strong position in the nuclear energy sector. He also confirmed that Czech companies should play an important role in future supply contracts.

Modular reactors can be manufactured in series in factories and then installed in individual units, with several gradually brought together at one site. According to nuclear energy experts, their main differences from large nuclear units are their lower output and faster, simpler construction. Their operation, by contrast, could be similar.

The Czech Republic currently has six nuclear units at two power plants. Two units, each with a capacity of approximately 1000 megawatts (MW), are at Temelín in South Bohemia. Four smaller units with a capacity of 510 MW are at Dukovany in the Třebíč district. South Korea’s KHNP is expected to build two more reactors at Dukovany. The first is due to be completed in 2036.