Rolls-Royce has offloaded a minority stake in its small nuclear reactor division to Czech power company CEZ. The Derby-based giant has transferred a 20 per cent share in Rolls-Royce SMR in a deal worth hundreds of millions of pounds.
CEZ has plans to construct the first small modular reactor at the existing Temelin nuclear plant in the first half of the 2030s. The agreement is anticipated to result in up to three gigawatt-producing (GW) energy sources installed in the Czech Republic, as reported by .
CEZ will also engage in other projects by Rolls-Royce SMR in Europe and globally.
The deal with Rolls-Royce marks 'an important moment'. "It's an important moment for ensuring energy security of the Czech Republic," stated Czech Prime Minister Petr Fiala.
The Czech state holds nearly a 70 per cent stake in CEZ. A power plant utilising a small modular reactor by the British company is expected to produce 470 megawatts for 60 years, according to a statement by CEZ.
Small modular reactors are a type of nuclear reactor that can generate up to roughly one-third the power of a traditional reactor. Developers argue that small reactors will be constructed faster and at a lower cost than large power reactors, scaling to fit the needs of a specific location.
The Czech Republic relies on six nuclear reactors to generate more than a third of its electricity and plans to depend on nuclear power and renewable resources after deciding to phase out coal for energy generation by 2033 to reduce carbon emissions.
CEZ is anticipated to sign a contract with South Korea's KHNP by March to construct at least two nuclear reactors in Czechia.
Rolls-Royce has seen remarkable performance over the past two years, following the appointment of Turkish businessman Tufan Erginbilgic to spearhead a turnaround. The company topped the FTSE 100 in September after releasing its latest financial update.
