ČEZ takes Rolls-Royce SMR stake, plans to deploy 3GW fleet
Czech Republic nuclear power operator ČEZ Group has taken a 20% stake in Rolls-Royce SMR and said it hopes to begin work in 2025 on rolling out a fleet of small modular reactors in the country.
The agreement between the two companies will see them work on plans for the deployment of small modular reactors providing up to 3GW of capacity in the Czech Republic. They are working to "finalise contractual order terms for an order of the first unit with early works expected to commence as soon as 2025".
They say they expect their collaboration to last several decades, and ČEZ "will support Rolls-Royce SMR to deploy SMR projects across Europe, leveraging the learning curve and knowledge transfer across projects ... it also signals a strong commitment to building an international supply chain, generating an enormous opportunity to develop skills in both countries and deliver significant economic growth".
Daniel Beneš, CEO of ČEZ Group, said: "This investment enables our commitment to international collaboration in delivering clean power at home and abroad. The Czech Republic hosts some of the world’s leading nuclear supply chain companies. This collaboration in deployment of Rolls-Royce SMR units offers a unique opportunity for growth and prosperity to the nuclear sector through our participation in the development of the technology and will enable ČEZ and other local companies to play a significant role in its future global production."
Tufan Erginbilgiç, CEO of Rolls-Royce, said: "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 Rolls-Royce SMR. We have a shared vision and ČEZ further strengthens our ability to build stable, secure, low carbon power - delivering on our promise as a leading European SMR business. Today's announcement ensures that the Rolls-Royce SMR business is set up for success in the UK, the Czech Republic and around the world."
As well as Rolls-Royce, Rolls-Royce SMR shareholders include BNF Resources, Constellation and the Qatar Investment Authority.
Czech Prime Minister Petr Fiala's office said the investment was "several hundred million pounds" (GBP100 million is USD130 million) and places Czech companies "at the forefront of the development and construction of small modular reactors".
Fiala said: "Small modular reactors are a huge opportunity for our industry and our energy sector. The strategic partnership between ČEZ and Rolls-Royce SMR is the basis for the Czech Republic to be an important player in the field of modular reactors."
The Czech government said that because Rolls-Royce SMR is just forming its supply chain, Czech companies "have a unique opportunity" to be involved, with Minister of Industry and Trade Lukáš Vlček saying "our experts will participate in the actual development, production of components and construction of the first modular reactor in Great Britain" and gain important knowledge for the use of technology in the Czech Republic."
The Rolls-Royce SMR
The Rolls-Royce SMR is a 470 MWe design based on a small pressurised water reactor. It will provide consistent baseload generation for at least 60 years. 90% of the SMR - measuring about 16 metres by 4 metres - will be built in factory conditions, limiting on-site activity primarily to assembly of pre-fabricated, pre-tested, modules which significantly reduces project risk and has the potential to drastically shorten build schedules.
Its capacity is larger than many of its SMR rivals - the general definition of an SMR is of a reactor unit with an output of up to 300 MWe. In July, it successfully completed Step 2 of the UK's Generic Design Assessment process and progressed to the third and final phase of the process which assesses the safety, security and environmental aspects of a nuclear power plant design that is intended to be deployed in the UK. The target date to complete that final stage is August 2026.
Rolls-Royce SMR's selection by the Czech Republic came as the company waits to hear whether it will be selected by the UK as one of the preferred suppliers for its own SMR programme. It is one of four left in the running, with the expectation that two technologies will be selected to be taken forward by the UK government's arms-length Great British Nuclear body for deployment.
Nuclear Power in the Czech Republic
The Czech Republic currently gets about one-third of its electricity from four VVER-440 units at Dukovany, which began operating between 1985 and 1987, and the two VVER-1000 units in operation at Temelín, which came into operation in 2000 and 2002. In July, Korea Hydro & Nuclear Power was named the preferred bidder for up to four new units at the two existing nuclear power plants, with the target of the first unit entering commercial operation in 2038.
The Czech SMR roadmap was published and approved last year setting out options for technology suppliers and identifying a range of potential sites - 45 in total - as well as investor models. Its vision is for "SMRs to complement large nuclear units from 2030s-40s onwards". In September the Czech Ministry of Trade announced that the Rolls-Royce SMR had been selected from a seven-strong shortlist.
The first small modular reactor is planned by ČEZ at a site near the existing Temelín nuclear power plant in the 2030s, "before the start up of the new large Czech nuclear unit which is planned for before 2040", the ministry said. ČEZ is also looking at other sites suitable for SMRs, including Tušimice and Dětmarovice where survey and monitoring work has been taking place to see if they are suitable nuclear sites.
