Rolls-Royce’s nuclear innovation
In a significant step toward revolutionising clean energy production, Rolls-Royce Small Modular Reactors (SMR) has inked a pivotal Memorandum of Understanding (MoU) with Czech engineering powerhouse Škoda JS.
At the heart of the initiative is Rolls-Royce’s innovative 470 megawatt-electric (MWe) pressurized water reactor design. Compact and efficient, each SMR module measures just 16 meters by 4 meters, yet generates low-carbon electricity equivalent to over 150 onshore wind turbines.
Think about that Chris Bowen!
Wind and solar not the cheapest
Chris Bowen, of course, believes solar and wind, backed by battery transmission, is the cheapest form of energy. This is despite electricity prices already rising since going ‘green’. In 2022 power bills rose 18 per cent, in 2023 they rose by 15 per cent, and in 2024 they rose by 21 per cent and in 2025 so far they are 13 per cent higher. Since going green, our power bills are up by a massive 85 per cent.
Chris Bowen cites ‘independent’ research from the Commonwealth Scientific Industrial Research Organisation (CSIRO) for his claim that green energy is cheapest, even though the CSIRO’s 2024-25 GenCost report admitted that coal is cheaper than renewables (1). And that GenCost report was also co-authored by the Australian Energy Market operator (AEMO), whose membership is 40 per cent industry players, including wind and solar energy producers (2).
The CSIRO, which is partly funded by the government, is also reportedly 50 per cent funded by private industry. Indeed, one industry funder is GISERA (Gas Industry Social and Environmental Research Alliance), which in turn is funded by Australia Pacific LNG, QGC, Santos and Origin Energy. Other CSIRO funders are reported to include AGL (owned partly by Mike Cannon-Brooks), Vestas (a wind turbine maker), and Tesla (a battery manufacturer).
Nuclear Energy – a globally proven source of reliable baseload power
The collaboration between Rolls Royce and Skoda focuses on manufacturing key components for Rolls-Royce’s cutting-edge SMR fleet, signalling a major expansion in the company’s international supply chain
With ambitions to deploy up to 3 gigawatts (GW) of nuclear capacity in the Czech Republic alone, the deal underscores the growing momentum behind modular nuclear technology as a cornerstone of sustainable energy transitions worldwide.
Built on proven technology, these reactors promise a lifespan of at least 60 years, delivering stable, affordable, and emission-free power to around one million homes per unit.
What sets them apart from traditional nuclear plants? A modular construction model where 90 per cent of the reactor is prefabricated in controlled factory environments, then shipped for swift on-site assembly. This approach slashes costs, minimizes delays and reduces overall project risks.
Rolls-Royce SMR, now 20 per cent owned by Czech nuclear operator ČEZ (Škoda JS’s parent company), views this as the foundation for long-term collaboration.
The MoU builds on a flurry of recent supply chain advancements. Rolls-Royce SMR has also teamed up with another Czech entity, ÚJV Řež, for rigorous analysis, testing, and evaluation of critical SMR components.
Meanwhile, across the English Channel, a multi-million-pound deal with the UK arm of Curtiss-Wright (formerly Ultra Energy) secures the design and supply of Non-programmable Diverse Reactor Protection Systems. These robust, safety-critical backups use time-tested electronic tech-free from microprocessors or software – to independently shut down reactors if needed.
Back in June 2024, the UK government tapped Rolls Royce as the preferred technology for the nation’s inaugural SMR fleet, targeting 1.5 GW of output – enough to energize about three million homes.
And the plans are accelerating. Contracts are expected to be signed later this year, alongside forming a dedicated development company and selecting sites, with grid connections eyed for the mid-2030s and a final investment decision slated for 2029.
Not to be outdone, in October 2024, ČEZ selected Rolls-Royce for up to 3 GW in the Czech Republic, positioning the company as a frontrunner in Europe. Rolls-Royce claims it’s up to 18 months ahead of rivals in regulatory processes, which positions the company as the current global leader in SMR tech.
As the world grapples with (and Australia is mired in) the dual challenges of energy security and climate change, Rolls-Royce’s SMR program offers a compelling solution: reliable baseload power that’s emission-free and quicker to deploy than ever before.
Sources:
[1] https://www.cis.org.au/commentary/opinion/why-is-csiro-hiding-the-inconvenient-truth-about-renewables-cost-blowout/
[2] https://aemo.com.au/-/media/files/about_aemo/board_and_governance/aemo–industry-member-list.pdf?la=en
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
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