Rolls-Royce considers funding options for its small modular reactor division

British company Rolls-Royce is exploring ways to raise money for its small modular reactor (SMR) division. These include a potential share offering by the division. The Financial Times reported this today, citing people familiar with the situation. Czech energy company ČEZ holds roughly a one-fifth stake in Rolls-Royce SMR.

Talks with investment firms and banks are focused on future funding needs and are still at an early stage. According to sources, the company’s management is in no rush to make a decision.

Rolls-Royce SMR was selected in June to build the first small modular reactors in Britain. The decision is part of a plan to accelerate the decarbonisation of the electricity grid from the mid-2030s. The company plans to build three reactors. The British government has pledged £2.5 billion (CZK 70.7 billion) for the SMR programme over the next four years, aiming to establish one of Europe’s first small nuclear reactor industries. In addition to Britain and Czechia, the United States, Canada and Romania are also pursuing SMRs, potentially opening up a vast global market if the British project succeeds.

ČEZ and Rolls-Royce SMR plan to work together on the development of modular nuclear reactors. ČEZ also hopes to participate as a supplier of some of the technologies for the construction of three modular reactors in Britain. The companies are also preparing to build a modular reactor at Temelín, with construction expected to begin in the first half of the 2030s.