Published:29.10.2024
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The largest Czech energy group ČEZ to Acquire Stake in British Rolls-Royce, Signs Collaboration Agreement for Modular Reactor Development

The semi-state energy company ČEZ has signed a strategic collaboration agreement with Rolls-Royce SMR for the development of modular reactors. ČEZ will acquire approximately a 20% stake in the British company, paying several billion crowns for it. This was announced on Tuesday by Czech Prime Minister Petr Fiala (ODS) and representatives from both companies. The first domestic modular reactor is expected to be built in the first half of the 2030s in nuclear plant Temelín.

The collaboration is planned for several decades, includes ČEZ’s direct involvement in developing new modular reactor technology and its manufacturing on a global scale, rather than just purchasing or supplying finished equipment.

“This is an important moment for ensuring the energy security of the Czech Republic. At the same time, we have a unique opportunity to participate in new modular reactor technology. We do not want to just buy technologies; we want to be involved in their development and production,” Fiala said regarding the agreement. According to him, Czech companies will have the opportunity not only in the development of the equipment but also in supply chains.

The Czech Chamber of Commerce shares this hope. “This means that the production of small modular reactors could partially take place in the Czech Republic, thus involving and contributing to Czech industry, which is definitely desirable,” the chamber stated.

According to ČEZ, the small modular reactor from Rolls-Royce SMR is a pressurized water reactor that utilizes both active and passive safety features. Its electrical output is expected to be 470 megawatts, and the reactor's lifespan is projected to be at least 60 years.

ČEZ plans to construct modular reactors with a total output of three gigawatts by 2050. The existing plants in Dukovany and Temelín each have a capacity of about two gigawatts. According to previous statements from ČEZ, the modular reactors are intended primarily for heat supply and are expected to be built on the sites of current coal-fired power plants, such as in Prunéřov or Dětmarovice. The cost of a modular reactor will be similar to that of large blocks, but proportionate to the lower output of the modular reactor, according to ČEZ CEO Daniel Beneš. ČEZ is currently preparing the construction of two large reactors, each with an output of over 1000 MW in Dukovany, with government estimates placing the cost of one at around 200 billion crowns at current prices.

Modular reactors can be manufactured in series in factories, with more units gradually concentrated at a single location. According to nuclear energy experts, they differ from large nuclear blocks primarily in their lower output and also in faster and simpler construction, although their operation could be similar.

At the end of August, the state signed a security agreement with ČEZ for the development of small and medium modular reactors. The agreement aims to ensure the state's security interests when selecting a future partner for the development and construction of such reactors in the Czech Republic. ČEZ will, for instance, inform the state about its choice of supplier.

Currently, the Czech Republic has six nuclear blocks in two power plants. Two blocks, each with a capacity of approximately 1000 megawatts (MW), are located in South Bohemia at Temelín. Four smaller blocks with a capacity of 510 MW are in Dukovany in the Třebíč region. In Dukovany, the Korean company KHNP is expected to build two more reactors, with the first one due to be completed in 2036.

Source: https://www.e15.cz/
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