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Rolls-Royce is under pressure to buy Czech parts for its pioneering mini-nuclear power stations after striking a deal with Prague to build a generator in the country.
The British engineering giant revealed in October that CEZ, the Czech state energy company, had placed the first order for its small modular reactors (SMRs) and was taking a minority stake in the venture as well.
It was hailed as a landmark deal that would see the Czech Republic benefit from being part of the technology’s supply chain.
But according to local media reports, Rolls and CEZ are in disagreement about where to source key components from.
CEZ has reportedly been pushing for its subsidiary Skoda JS – a former part of the Skoda Works empire that is now separate to the car company of the same name – to be awarded the contract to manufacture reactor pressure vessels, according to Czech newspaper Ekonomicky denik.
However, the report claimed that Rolls is pushing for Doosan, in South Korea, to be given the work instead because it can do a better job for a lower price.
Rolls was also said to be frustrated that CEZ had not agreed to post engineers to Britain to help finish the company’s SMR designs.
Rolls insiders strongly rejected suggestions that there was any rift between the partners. “There is absolutely no issue here,” one source close to the discussions said on Tuesday.
The companies have held early discussions about where to obtain parts such as reactor pressure vessels, steam generators and turbines, with the choice for certain items between as few as two vendors.
Engineers from both companies had been meeting in Britain and the Czech Republic “every other week” to discuss the designs, the source added.
While the source confirmed that the choice was between Skoda and Doosan, they claimed that this was because they were the only two reactor pressure vessel manufacturers in the world that could realistically meet the joint venture’s requirements.
Rolls had “no preference” currently and was seeking to conduct an open process, they said.
“We know how important the domestic supply chain issue is to the Czechs and we are taking that very seriously,” the source added.
“Of course, we want to bring UK companies in as well where possible. But we have not made any hard decisions about these things yet. We will be working with the Czechs to make sure we get the balance right.”
Under the agreement between the two companies, CEZ has ordered up to three gigawatts of SMR reactors from Rolls-Royce – equivalent to roughly six mini reactors – and will become a “strategic partner”.