Czech Giant CEZ Partners with Rolls-Royce to Develop Mini Nuclear Reactors

CEZ acquires a 20% stake in Rolls-Royce SMR to build small nuclear reactors in the Czech Republic, aiming for stable and low-carbon energy.

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The Czech public energy group CEZ, a major player in the sector in the Czech Republic, has announced a significant stake acquisition in Rolls-Royce SMR, the small modular reactor (SMR) subsidiary of British group Rolls-Royce. This acquisition, representing a 20% stake, marks a strategic step for both companies in the development of advanced nuclear technologies, with the goal of building mini-reactors in the Czech Republic.

The first small modular reactor resulting from this partnership is expected to be operational by 2035 at the Temelin nuclear plant, located in southern Czech Republic. CEZ, which currently operates the Temelin and Dukovany plants, aims to contribute to the increase of national nuclear capacity while limiting its carbon footprint. CEZ’s two plants currently provide about 30% of the electricity consumed in the Czech Republic, a share the group plans to increase to 50% by 2050.

A Major Project for the Czech Energy Future

CEZ’s CEO, Daniel Benes, described this partnership as a “historic step in the Czech nuclear program.” The project includes building an additional 3,000 megawatts, an ambitious plan aligned with the Czech government’s objective to strengthen nuclear energy production while gradually reducing coal power plants. The investment in SMRs also offers greater flexibility due to the ease of transporting and installing these small modular units.

The precise costs of the project have yet to be finalized, but Tufan Erginbilgic, CEO of Rolls-Royce SMR, estimates an investment of several billion pounds. He emphasizes the importance of this collaboration in terms of engineering and finance to ensure stable, safe, and low-carbon energy. This synergy between the two groups is aligned with sustainable development goals, meeting growing needs for clean energy.

International Competition and the Choice of Rolls-Royce SMR

The choice of Rolls-Royce SMR as a strategic partner resulted from a rigorous selection process led by the Czech government, which reviewed proposals from seven major global nuclear sector players. Among them were key names such as the American Westinghouse, the Japanese-American group GE Hitachi, and the French EDF. This choice in favor of Rolls-Royce SMR demonstrates the Czech Republic’s desire to bet on a proven and modular technology, suited to its energy infrastructure needs.

Nuclear Capacity Expansion and Energy Transition

In addition to this partnership with Rolls-Royce, CEZ has also committed to strengthening its conventional nuclear capabilities. In July, the group selected South Korean company KHNP to construct two additional conventional nuclear units in Dukovany, for an investment close to nine billion dollars. These new installations should help increase the share of nuclear energy to 50% of the national energy mix, aligning with the goal of transitioning to less polluting energy sources.

The development of these nuclear projects comes within the context of an accelerated energy transition in Central Europe, where many countries seek to reduce their dependence on fossil fuels while ensuring energy security. For the Czech Republic, nuclear energy represents a viable option to address environmental challenges and emission reduction goals.

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