Energo: Czech energy utility ČEZ buys 20% share in British Rolls-Royce SMR

The majority state-owned Czech energy utility ČEZ signed a strategic agreement with British Rolls-Royce, as part of which ČEZ will purchase a 20% minority stake in its small nuclear business Rolls-Royce SMR.

ČEZ is to pay several billion Czech koruna (CZK1bn equates to €39.5mn), Czech Television reported, and the cooperation follows up on the September selection of Rolls Royce to develop small modular reactors (SMRs) over rivals Westinghouse and GE Hitachi of US.     

“It is an important moment of securing the energy security of the Czech Republic. At the same time, we have a unique opportunity to take part in the development of new technology of modular reactors,” Czech Prime Minister Petr Fiala commented on the cooperation, which is expected to produce the first SMR in Czechia in the mid-2030s.

“We are pleased to receive this significant opportunity to deploy our SMR technology in the Czech Republic and welcome ČEZ as a strategic investor and partner in Rolly-Royce SMR,” CEO of Rolls-Royce Tufan Erginbilgic commented.

ČEZ CEO Daniel Beneš said that “this investment enables our commitment to international collaboration in delivering clean power at home and abroad,” adding that “the Czech Republic hosts some of the world’s leading nuclear supply chain companies” already.  

Beneš added that the price of SMR will be comparable to the large nuclear units, but relative to its smaller output.

The country has launched a major nuclear expansion under the watch of Fiala’s sitting centre-right cabinet and has also selected South Korean KHNP in the €16bn tender to build two new reactors at the older of the two nuclear power plants in Czechia, Dukovany.

Rivals Westinghouse and French EDF filed complaints with the Czech and EU authorities over the decision, but Fiala’s cabinet expects to go ahead with contracting KHNP.

ČEZ plans to have several SMRs, which require less time for completion, built by 2050 with a combined output of 3 GW. SMRs should be located on sites of current sites of coal plants such as Prunéřov and Dětmarovice.

The country’s nuclear power plants (NPPs), Dukovany and Temelín, have an output of about 2 GW each.