Economic Scenarios

The Czech Republic buys a stake in Rolls Royce’s Modular Nuclear Reactors

Rolls-Royce has sold a minority stake in its small nuclear reactor division to Czech power company CEZ. The Derby-based giant has sold a 20% stake in Rolls-Royce SMR in a deal worth hundreds of millions of pounds.

CEZ plans to build the first small modular reactor at the existing Temelin nuclear power plant in the first half of 2030.

The agreement is expected to lead to the installation of three gigawatts (GW) of energy in the Czech Republic. CEZ will also participate in other Rolls-Royce SMR projects in Europe and around the world.

A state intervenes directly in SMRs by buying a stake

β€œIt is an important moment to ensure the energy security of the Czech Republic,” said Czech Prime Minister Petr Fiala.
The Czech state holds an almost 70% stake in CEZ.

A power plant using the British company's small modular reactor is expected to produce 470 megawatts for 60 years, CEZ said in a statement.

Small modular reactors are a type of nuclear reactor that can generate up to about a third of the power of a traditional reactor.
Developers say small reactors will be built faster and cheaper than large-power reactors, tailoring to the needs of a particular location.

The Czech Republic relies on six nuclear reactors to generate more than a third of its electricity and plans to rely on nuclear and renewable resources after deciding to phase out coal from power generation by 2033 to reduce carbon emissions.

By March CEZ is expected to sign a contract with South Korea's KHNP for the construction of at least two nuclear reactors in Czechia.

Rolls-Royce has achieved incredible results over the past two years, after the company brought in Turkish businessman Tufan Erginbilgic to lead a turnaround , while in September it topped the FTSE 100 after reporting its latest update financial.

Buying a stake in the company that will then build nuclear reactors in the country is a bold, but logical, move for the energy company. The only doubt is whether purchasing the share of the British company was the best choice, because there are also other companies that are producing SMRs which, perhaps, present better technological solutions than Rolls Royce.


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The article The Czech Republic buys a stake in Rolls Royce's Modular Nuclear Reactors comes from Economic Scenarios .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-repubblica-ceca-si-compra-una-partecipazione-nei-reattori-nucleari-modulari-della-rolls-royce/ on Wed, 30 Oct 2024 11:00:44 +0000.