Rolls-Royce has sold a minority stake in its small nuclear reactor division to Czech power company CEZ.
The Derby-headquartered giant has handed a 20 per cent share 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 plant in the first half of the 2030s.
The deal is expected to result in up to three gigawatt-producing (GW) energy sources installed in the Czech Republic.
CEZ will also participate in other projects by Rolls-Royce SMR in Europe and around the world.
Rolls-Royce deal ‘an important moment’
“It’s an important moment for ensuring energy security of the Czech Republic,” Czech Prime Minister Petr Fiala said.
The Czech state has an almost 70 per cent stake in CEZ.
A power plant using a small modular reactor by the British company should 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 roughly one-third the power of a traditional reactor.
Developers say small reactors will be built faster and at a lower cost than large power reactors, scaling to fit 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 power and renewable resources after deciding to phase out coal for energy generation by 2033 to reduce carbon emissions.
CEZ is expected to sign a contract by March with South Korea’s KHNP to build at least two nuclear reactors in Czechia.
Rolls-Royce has performed incredibly well over the last two years after the company brought in Turkish businessman Tufan Erginbilgic to lead a turnaround while it topped the FTSE 100 in September after reporting its latest financial update.