© Rolls-Royce plc 2008 Legal Information

Engineering and Technology

In 2007, Rolls-Royce invested a total of £824 million in research and development, of which £454 million was funded from Group resources. The net charge to the income statement was £381 million.

Over the past year, we have continued investing in technology demonstration programmes aimed at reducing the environmental impact of our products. The seven year European 'Clean Sky' Joint Technology Initiative has now been successfully launched with Rolls-Royce leading three of the five engine demonstrator programmes. This European initiative is aiming to reduce radically the impact of civil aviation on the environment.

In the UK, we are members of the newly formed Energy Technologies Institute (ETI) whose remit is to invest in research and development to accelerate the development of secure, reliable and cost-effective low-carbon energy technologies towards commercial deployment. We have also successfully been awarded funding from the UK Government's Technology Strategy Board for a number of low carbon/renewable projects.

Development of the innovative Rolls-Royce fuel cell system continues. This technology will deliver significant reductions in carbon dioxide with negligible oxides of nitrogen emissions relative to existing fossil fuel power generation technology.

In 2007, we continued the expansion of our global network of University Technology Centres (UTCs) with two new UTCs at the University of Bristol, to focus on composite materials and at Karlsruhe in Germany, to focus on cooling in turbines and combustors. We also launched a new Advanced Research Centre to develop forming technologies with industry partners and Strathclyde University.

Building on our research successes of previous years we filed a record 400 patent applications.

The US Air Force laboratory awarded Rolls-Royce two contracts within the Versatile Affordable Advanced Turbine Engines (VAATE) programme with a total value of US$315 million. The Adaptive Versatile Engine Technology (ADVENT) programme will demonstrate adaptive cycles technologies, while the Highly Efficient Embedded Turbine Engine (HEETE) will develop high-pressure ratio compressor and high temperature cycles technologies.

In the defence sector, the LiftFan for the Joint Strike Fighter completed ground testing prior to its flight test in 2008. The T56-A-427A engine for the E-2D Advanced Hawkeye successfully started flight-testing. This latest version of the T56 family incorporates a new sensor suite plus state-of-the-art integrated electronic propulsion system control, monitoring, and maintenance system. The new RR300 helicopter engine was certified ahead of schedule and is now undergoing flight testing.

In the civil aerospace sector, the Trent 1000 achieved certification on schedule in August and successfully completed a flight test programme on the Rolls-Royce Flying Test Bed. The V2500 SelectOne engine, which offers improved fuel consumption and lower life-cycle costs was also certified.

In the marine propulsion sector, we have started sea trials of a full-scale prototype of the Rim Driven Tunnel Thruster, which delivers a step change in technology for tunnel thrusters and dynamic positioning. The new lean-burn Bergen KV gas reciprocated engine made its entry into service, setting new standards in low emissions for commercial marine applications.

In 2007, the WR-21-powered Royal Navy Type 45 destroyer completed initial sea trials. The WR-21 is developed from the RB211 aero-engine and features an advanced intercooled recuperated cycle that makes it the world's most efficient marine gas turbine.

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