PRAGUE (AP) — The Czech power company CEZ signed a deal Tuesday with Britain's Rolls-Royce SMR to form a strategic partnership to develop and deploy small modular nuclear reactors.
Under the agreement, CEZ will acquire a 20% share in Rolls-Royce SMR for which it will pay several billion Czech crowns (hundreds of millions of dollars).
CEZ plans to build the first small modular reactor at the existing Temelin nuclear plant in the first half of the 2030s.
The partnership is expected to result in up to 3 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.
The Czech state has an almost 70% stake in the company.
"It's an important moment for ensuring energy security of the Czech Republic," Czech Prime Minister Petr Fiala said.
A power plant using a small modular reactor by the British company should produce 470 MW 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 amount of 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.