Prague, April 24, 2026, 15:00 CEST
- CEZ and Rolls-Royce SMR have inked an early-works deal for what would be the Czech Republic’s first small modular reactor, to be built at Temelín.
- The timeline for the first Czech unit has slipped, with current expectations pointing to the second half of the 2030s—pushed back from the previously suggested mid-2030s window.
- Rolls-Royce gains more ground with this deal, coming right after it secured a separate UK contract for the first SMRs at Wylfa, Wales.
Rolls-Royce Holdings plc’s small nuclear reactor arm inked an early-works contract with Czech utility CEZ on Friday, pushing forward the Czech Republic’s debut small modular reactor project at the Temelín nuclear facility. The company noted the deal marks another European commitment for its SMR unit, following a UK contract signed earlier this month. ([Rolls-Royce][1])
Right now, what’s at stake for Rolls-Royce is converting years of talk about nuclear exports into firm contracts—no more just collecting government endorsements or being shortlisted for tech. Landing the Czech deal hands the company a new European foothold, crucial as policymakers hunt for reliable, low-carbon energy sources to complement renewables and conventional nuclear plants.
Small modular reactors, known as SMRs, are nuclear plants built to a more compact design, aiming to lean on factory-made, repeatable parts rather than the massive custom builds of traditional reactors. Backers think this could rein in both costs and construction delays. But whether that holds up when SMRs hit full-scale deployment remains to be seen, as the industry hasn’t demonstrated it yet.
CEZ now anticipates its first Czech reactor will be finished in the latter part of the 2030s—pushing beyond its earlier target of the mid-2030s, Reuters said. The new unit is slated for the company’s Temelín nuclear power site in southern Czech Republic.
Daniel Beneš, chief executive at CEZ, said preparatory work covers project planning and the licensing paperwork required for building permits. The company is targeting approvals by 2030. CEZ holds roughly 20% of Rolls-Royce SMR and, together, the partners are looking to install as much as 3 gigawatts of SMR capacity in the Czech Republic.
Chris Cholerton, chief executive at Rolls-Royce SMR, called the contract a way to “unlock a significant programme of work” at Temelín, with the project set to be delivered alongside CEZ—both a strategic partner and a shareholder. According to Cholerton, Rolls-Royce SMR now holds contractual commitments not just in the UK but also in Czechia, making it the sole company in Europe with more than one contractual obligation to deliver SMR units. Nuclear Industry Association
Rolls-Royce CEO Tufan Erginbilgic described the Czech deal as a “critical milestone,” highlighting momentum from last month’s UK contract. According to the company, design work tailored to the Temelín site will kick off, with planning for permits, consents, and licensing to follow once geological studies wrap up in 2025. ([Rolls-Royce][1])
Execution is where things could get tricky. According to CEZ, the Czech deal covers engineering work only—it stops short of equipment supply, doesn’t represent an investment decision, and doesn’t trigger construction. The real hurdles remain: financing, state backing, licensing, and nailing down the final investor structure all still need to be sorted.
The UK side is making headway, though there’s more to do. Great British Energy – Nuclear announced on April 13 it’s inked a deal with Rolls-Royce SMR for the initial technology design phase on the country’s first SMRs. Still on the horizon: site-by-site design, regulatory talks, and planning, all before any final investment decision.
Competition is still very much in play. Vattenfall in Sweden has trimmed its SMR supplier list to just two: Rolls-Royce SMR and GE Vernova Hitachi’s BWRX-300, both now vying for a potential 1.5 gigawatt project at Ringhals. That keeps Rolls-Royce in the running for yet another European deal—this one not yet decided.
Nuclear may not loom as large as jet engines, defence or power systems at the parent company, but it’s starting to show up more in the investment narrative. Rolls-Royce posted underlying revenue of £20.1 billion and underlying operating profit of £3.46 billion for 2025, and the improved balance sheet is fueling both expansion efforts and returns to shareholders. ([Rolls-Royce][8])
Rolls-Royce was off 1.55% at 1,142p in delayed London trade, after the shares went ex-div. The ordinary-share record date lands on April 24, and investors can expect the payout on June 3.
[1]: https://www.rolls-royce.com/media/press-releases/2026/24-04-2026-rr-smr-has-multiple-contractual-commitments-to-deliver-smr-units-in-europe-after-signing-contract-with-cez-group.aspx “
Rolls-Royce SMR has multiple contractual commitments to deliver SMR units in Europe after signing contract with CEZ Group | Rolls-Royce
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[8]: https://www.rolls-royce.com/media/press-releases/2026/26-02-2026-rr-holdings-plc-2025-full-year-results.aspx “
Rolls-Royce Holdings Plc 2025 Full Year Results | Rolls-Royce
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