ČEZ to form strategic cooperation with Rolls-Royce SMR

Today, the Ministry of Industry and Trade (MIT) officially informed the government about the developments. ČEZ Group wants to cooperate with Rolls-Royce SMR on the development and construction of SMRs and to enter into a strategic partnership with the company. The UK company plans to deploy its first SMR in the UK in the early 2030s.

"Small modular reactors can be a key technology for ensuring our future energy security. That's why we have, from the beginning, been working towards not only building them, but also towards participating in their global development and production. The strategic partnership between ČEZ and Rolls-Royce SMR will be a great opportunity for Czech companies, with their long-standing experience in the nuclear industry," said Prime Minister Petr Fiala.

ČEZ has assessed information from seven bidders who were approached based on their potential suitability for a location in the Czech Republic. This process resulted in Rolls-Royce SMR being identified as the preferred candidate. ČEZ intends to establish a strategic partnership with Rolls-Royce SMR, subject to a successful security assessment of the UK company, similar to the one carried out for bidders for the construction of large nuclear units.

SMRs are an innovative technology that will supply homes and businesses with not just electricity but also with heat, replacing soon-to-be phased out coal-fired units and helping decarbonise the energy sector. In addition, the SMR construction programme represents a major opportunity for the Czech economy - opening up possibilities for manufacturing parts for nuclear units and becoming a significant player in the global supply chain, similar to large units.

"The technology can not only provide sufficient electricity at affordable prices, but also support our efforts to decarbonise and safely transition to clean energy sources. Moreover, this cooperation presents a great opportunity for Czech industry. Our companies can be part of the global supply chain from the very beginning and contribute to the development of this promising technology," said Minister of Industry and Trade Jozef Síkela.

The Czech Republic can benefit from being in the picture from the early stages as Rolls-Royce SMR sets up its supply chain. Czech companies thus have a unique opportunity to be at its inception and participate to the maximum extent possible. Thanks to this strategic cooperation, local companies will be able to participate not only in the development and construction of the new small modular reactor but also become suppliers for SMR projects beyond the Czech Republic.

"The strategic partnership with Rolls-Royce SMR will allow us to make use of our long-standing experience in the field of nuclear power and the high technological maturity of the British company," said Daniel Beneš, CEO of ČEZ, adding that ČEZ would now negotiate the specific form of cooperation with its counterpart.

ČEZ Group plans to build its first modular reactor near the Temelín nuclear power plant in South Bohemia. It should be built in the first half of the 2030s before the launch of the new large Czech nuclear unit, which is planned for 2040. The South Bohemian Region and ČEZ Group's subsidiary ÚJV Řež are also involved in the preparations.

Meanwhile, ČEZ is also exploring other locations that may be suitable for SMRs. These include the sites in Tušimice and Dětmarovice. Both are currently undergoing intensive exploration and monitoring works in order to establish their suitability as a location for a nuclear power source.

Modular reactors can be mass-produced and concentrated in blocks on one site. It makes sense to locate them on the sites of current coal-fired power stations, where future SMRs could produce not only electricity but also heat for the central heat supply systems.

This new development in cooperation follows the Joint Declaration of Cooperation signed last year by the Minister of Industry and Trade Jozef Síkela and the former UK Energy Security Minister Andrew Bowie, which aimed to promote cooperation between the two countries in this area and to involve Czech companies in the supply chains of this innovative, high value-added technology.

In August 2024, the Ministry concluded a contract with ČEZ to ensure the protection of the Czech Republic's security interests, which will ensure that the selection of the supplier and the construction of the nuclear power plant will be carried out in accordance with the Government's security requirements. The MIT will work with the Ministry of Interior, the Security Information Service (BIS), the Office of the National Intelligence Service (ÚZSI), the Military Intelligence Service and other key institutions to evaluate security aspects in accordance with the Low Carbon Law.