Rolls-Royce (LSE: RR.L) announced today that following a successful equity raise, the Rolls-Royce Small Modular Reactor (SMR) business has today been established, to bring forward and deliver at scale the next generation of low cost, low carbon nuclear power technology.
Rolls-Royce Group, BNF Resources UK Limited and Exelon Generation Limited will invest £195m across a period of around three years. The funding will enable the business to secure grant funding of £210 million from UK Research and Innovation funding, first announced by the UK Prime Minister in ‘The Ten Point Plan for a Green Industrial Revolution’. Today’s announcement is another step towards the delivery of the Government’s net zero strategy and its 10-point plan.
The business, which will continue to seek further investment, will now proceed rapidly with a range of parallel delivery activities, including entry to the UK Generic Design Assessment (GDA) process and identifying sites for the factories which will manufacture the modules that enable on-site assembly of the power plants. Discussions will also continue with the UK Government on identifying the delivery models that will enable long-term investment in this vital, net-zero enabling technology. Rolls-Royce SMR is engaging with export customers across many continents who need this technology to meet their own net zero commitments.
Rolls-Royce SMR is using proven nuclear technology, coupled with a unique factory-made module manufacturing and on-site assembly system, to harness decades of British engineering, design and manufacturing knowhow. It brings together the best of UK industry to ensure a decarbonisation solution that will be available to the UK grid in the early 2030s. The potential for this to be a leading global export for the UK is unprecedented.
Nine-tenths of an individual Rolls-Royce SMR power plant will be built or assembled in factory conditions and around 80% could be delivered by a UK supply chain – a unique offering in energy infrastructure in the UK. Much of the venture’s investment is expected to be focused in the North of the UK, where there is significant existing nuclear expertise
A single Rolls-Royce SMR power station will occupy the footprint of two football pitches and power approximately one million homes. It can support both on-grid electricity and a range of off-grid clean energy solutions, enabling the decarbonisation of industrial processes and the production of clean fuels, such as sustainable aviation fuels (SAF) and green hydrogen, to support the energy transition in the wider heat and transportation sectors.
Rolls-Royce (LSE: RR.L) has secured a significant contract to supply eight of its mtu 16V 4000 M65L engines for four 80-ton bollard pull tugboats to be built by Detroit Brasil, Ltda. and operated by Starnav Servicos Maritimos Ltda. The new tugs will feature a hybrid propulsion system, combining the mtu engines and mtu Blue Vision New Generation (BVNG) monitoring system with Z-drive thrusters, hybrid components and controls from Schottel, a manufacturer of propulsion and steering systems for ships and offshore applications.
While Rolls-Royce has supplied mtu Series 4000 engines to Detroit Brasil for several vessel projects in the past, this marks the first time Rolls-Royce will be supplying engines for 80-ton- bollard pull tugboats to the company and the first time that the high performance mtu 16V 4000 M65L engines which deliver 2560 kW at 1,800 rpm will be used in Latin America. Once the new tugs are entered into service, Starnav Serviços Marítimos Ltda. will run a total of 96 mtu Series 4000 engines in their fleet of harbor tugs and offshore vessels.
The mtu engines will be delivered in phases, with two delivered in August, two more in October, and two ship-sets consisting of two engines each for delivery in December.
Rolls-Royce (London: RR.L) business unit Power Systems is strengthening its research and development (R&D) capabilities in China with a new test bench for MTU engines at the company’s location in Suzhou. The new test bench was inaugurated as part of an event celebrating 25 years of the Rolls-Royce location’s existence. The R&D test bench can accommodate MTU engines with a power output of up to 3,600 kW and will be used to test parts, engines and complete systems for power generation and industrial applications.
The new R&D test bench in Suzhou will first be used for test runs of gensets based on MTU 16V 4000 engines, starting in 2022. It is suitable for testing a wide range of versions of the versatile Series 4000 engine which is also celebrating its 25th anniversary this year. A further upgrade of the test bench is planned for 2022: The capabilities will be extended to testing MTU Series 2000 engines as well.
The company opened its first facility in Suzhou 25 years ago to provide customers in China with faster and more efficient after-sale services in applications such as railway, marine and power generation. Suzhou later became the third production base for MTU engines globally at that time, responsible for the assembly of MTU Series 2000 gendrive engines. Branches in Beijing, Shanghai and Dalian were also established gradually. In October 2021, the former MTU Engineering (Suzhou) Co.,Ltd. was renamed Rolls-Royce Solutions (Suzhou) Co., Ltd.
With the new test bench, the localization strategy of Rolls-Royce Power Systems in Suzhou is now covering the whole process ranging from sales and services to manufacturing and R&D.
Rolls-Royce (OTC: RYCEY) announces the agreed sale of its 23.1% shareholding in AirTanker Holdings Limited to Equitix Investment Management Limited for cash proceeds of £189m, including the repayment of shareholder loans and accrued and deferred interest of approximately £47m, subject to any routine closing adjustments and before transaction costs. The transaction is expected to complete by the end of the first quarter of 2022, subject to regulatory approvals. There is no merger control condition. Proceeds will be used to reduce net debt. Remaining AirTanker shareholders have pre-emption rights over the Rolls-Royce shares and loan notes.
AirTanker Holdings Limited, a joint venture with Airbus, Babcock, and Thales, owns 14 A330-200 Voyager aircraft which are powered by Trent 772B engines, a derivative of the Trent 700 engine. The Voyager aircraft support air-to-air refuelling, air transport and ancillary services for the UK Ministry of Defence. This fleet is operated by AirTanker Services Limited, in which we will continue to be a 23.5% shareholder. We will also continue to provide servicing and maintenance for the fleet of Rolls-Royce engines that power the Voyager aircraft to support the Royal Air Force.
Rolls-Royce Holdings (OTC: RYCEY) and Airlink have signed a TotalCare ® service agreement for the AE3007 engines that power the South African airline’s fleet of Embraer ERJ135 aircraft. The agreement, which covers 28 aircraft, is an extension of service for a further 10 years, continuing the airline’s drive to maximise aircraft availability.
In 2019, prior to the Covid-19 pandemic, Airlink carried more than 2 million customers on more than 63,000 flights. Airlink currently operates a reduced route network to more than 45 destinations in 12 African countries, whilst remaining agile to the effects of Covid-19 and associated travel restrictions. Airlink was proudly the most punctual South African airline for 2020; its year-to-date performance up to August 2021 has been 98.1% on-time.
TotalCare is the flagship integrated engine service cover provided by Rolls-Royce. It is designed for predictive maintenance planning, as well as off-wing repair and overhaul activities for operators of Rolls-Royce aero engines. TotalCare transfers both time-on-wing and maintenance cost risks back to Rolls-Royce, as well as offering advanced engine health monitoring and future product enhancements.
Aircraft covered by TotalCare achieve higher availability, increased long-term residual values, and benefit from the global Rolls-Royce Care Network; a large, capable and competitive engine service network that caters for the needs of engines at every point in their lifecycle.
German airline Condor has chosen the A330neo to renew its long-haul fleet with plans to introduce 16 aircraft of this new and more efficient type. The airline has signed an agreement with Airbus for the purchase of seven Airbus A330neo, and intends to lease a further nine.
Condor is the latest airline to order Airbus’ state-of-the-art A330neo widebody aircraft, bringing a step-change in performance and economics. The airline will operate the A330neo on its international long-haul network to the Americas, Africa, the Caribbean and Asia.
The Airbus A330neo is a true next-generation aircraft, incorporating the latest A350 technologies, with A330 profitability and Airbus commonality. Equipped with the stunning Airspace cabin, the A330neo offers a unique passenger experience, brimming with the latest in-flight entertainment systems and connectivity.
The A330neo is powered by Rolls-Royce Trent 7000 engines and features a new wing with increased span and A350-inspired winglets. The aircraft also provides an unprecedented level of efficiency, with 25% lower fuel-burn and CO2 emissions per seat than previous-generation competitors. Thanks to its tailored, mid-sized capacity and excellent range versatility, the A330neo is considered the ideal aircraft to support operators in their post-COVID-19 recovery.
Strenghtens Rolls-Royce’s market position in safety-critical applications with a leader in dynamic uninterruptible power supply
Completes Rolls-Royce’s product offering and accelerates the strategy of offering integrated solutions
Acquisition expected to deliver cost and revenue synergies, and help support medium-term profitability and create long-term shareholder value
Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. Rolls-Royce is already a leading provider of back-up power generation through its Power Systems business with its product and solutions brand MTU. This market has remained a growth area during the Covid-19 pandemic and is expected to grow in the coming years as customers look to further minimize their risk of disruption.
Uninterruptible power supply systems are used wherever stable electricity is required or a power failure would be extremely harmful, for example within data centres, hospitals or manufacturing facilities which operate sensitive processes. This acquisition is another important step on the strategic journey of Power Systems towards becoming a full-service provider of integrated solutions. Kinolt’s uninterruptible emergency power supply technology is particularly well suited to applications where space is at a premium, such as urban areas or installations in existing buildings and complements Rolls-Royce’s own MTU branded solutions for large scale and greenfield sites. As a result, the deal is expected to result in cost and revenue synergies, medium-term long-term shareholder value in the back-up power generation business.
Andreas Schell, CEO of Rolls-Royce Power Systems, said: “The extraordinary times created by the Covid-19 pandemic have shown just how important it is to secure electricity supply to sensitive and critical infrastructure. The provision of uninterruptible power is vital in any situation and even more so today, as it ensures the provision of vital services such as medical care or the world’s continued flow of internet traffic. Without it, no public authority or company would be able to act in any crisis.”
The demand for uninterruptible power solutions is expected to remain strong in the aftermath of the Covid-19 pandemic. The acquisition of Kinolt will give Rolls-Royce a market-leading solution for businesses and local authorities who experienced issues with supply, or do not wish to run the risk again.
“We originally signed the deal to acquire Kinolt before the full global impact of Covid-19 was apparent,” added Schell. “Since then we have rigorously examined the rationale for the transaction and the opportunities it presents to our business and concluded that the arguments in favour of the acquisition are even stronger than before.”
Power Generation is already the top-selling segment within the Power Systems business. In the future it is expected to be the only manufacturer in the world able to supply customers with all components and consequently a complete uninterrupted power generation system in the power range from 200 to 3,200 kVA. Kinolt’s technology consists of a combination of rotating, kinetic mass storage devices, a diesel engine and a generator that can also be used as an electric motor. MTU engines from Rolls-Royce are often already used within Kinolt’s solutions. The Kinolt system is connected between the external power supply system and safety-critical equipment and supplies the latter with the required electrical power during normal operation. The grid frequency and voltage are generally more stable than the grid of public power suppliers. This is necessary because data servers, computer-controlled systems or sensitive devices such as those in hospitals can fail in the event of voltage and frequency fluctuations. In the case of a power failure, the flywheel mass accumulator ‘bridges’ the first few seconds before the diesel engine takes up the load.
“We will integrate the products and systems of our new subsidiary into our MTU product portfolio,” said Andreas Görtz, Vice President of Power Generation at Rolls-Royce. “Our worldwide sales and service network will open up new market opportunities by offering innovative uninterruptible power solutions. This will significantly strengthen our market position in safety-critical applications.”
Kinolt is based in the town of Grâce-Hollogne in the Belgian province of Liège and was known as Euro-Diesel until mid-2019. The transaction was completed on 1 July 2020 following the approval of antitrust authorities.
Rolls-Royce stärkt sein Angebot an Stromversorgungssystemen für sicherheitskritische Anwendungen mit dem Abschluss der Übernahme von Kinolt S.A., einem in Belgien ansässigen Spezialisten für dynamische unterbrechungsfreie Stromversorgung.
Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply.
Avec l’aboutissement de l’acquisition de Kinolt S.A., un spécialiste de l’alimentation dynamique sans interruption (ASI) établi en Belgique, Rolls-Royce élargit son offre de systèmes d’alimentation électrique dédiés aux applications cruciales en matière de sécurité.
Rolls-Royce heeft de overname afgerond van Kinolt S.A., een in België gevestigde specialist voor dynamische onderbrekingsvrije stroomvoorziening. Met deze overname vergroot het zijn aanbod van stroomvoorzieningssystemen voor veiligheidskritische toepassingen.
Rolls-Royce is to supply complete MTU propulsion systems for five new Type 31 general-purpose frigates for the Royal Navy. In total, the order comprises of 40 engines and generator sets to be used for main propulsion and on-board power generation, the MTU Callosum propulsion control and monitoring system, and Integrated Logistics Support (ILS).
Rolls-Royce liefert komplette MTU-Antriebssysteme für fünf neue Type-31-Mehrzweckfregatten der britischen Royal Navy. Der Auftrag umfasst insgesamt 40 MTU-Hauptantriebsmotoren und Bordstromaggregate, das Antriebssteuerungs- und Überwachungssystem MTU Callosum und die dazugehörige integrierte logistische Unterstützung (ILS).
Delivery scope: 20 main propulsion engines and 20 on-board generator sets, Callosum marine automation and integrated logistic support
MTU propulsion solutions from Rolls-Royce now feature in almost all current and future Royal Navy vessels
Each new Type 31 frigate of the Royal Navy will be powered by four MTU 20V 8000 M71 engines, each delivering over 8,000 kW.
Die neuen Type-31-Fregatten der britischen Royal Navy werden von je vier MTU-Motoren des Typs 20V 8000 M71 mit einer Leistung von über 8000 Kilowatt angetrieben.
Rolls-Royce is to supply complete MTU propulsion systems for five new Type 31 general-purpose frigates for the Royal Navy. In total, the order comprises of 40 engines and generator sets to be used for main propulsion and on-board power generation, the MTU Callosum propulsion control and monitoring system, and Integrated Logistics Support (ILS). Each new frigate will be powered by four MTU 20V 8000 M71 engines, each delivering over 8,000 kW. On-board power will be provided on each vessel by four MTU generator sets based on 16V 2000 M41B units, each delivering in excess of 900 kW. In September 2021, Rolls-Royce will deliver the first shipset comprising four main propulsion engines and four generator sets to prime contractor Babcock International Group. Integrated Logistics Support for propulsion and onboard power systems will ensure efficient and cost-effective maintenance throughout their entire service life. It is expected that the MTU Callosum propulsion control and monitoring system will be officially added to the supply contract very shortly.
Sean Donaldson, Managing Director for Energy & Marine at Babcock International, said: “We’re delighted to welcome Rolls-Royce with its MTU solutions as a supplier to our Type 31 Programme. Its engines and on-board generator sets are already proving their mettle in numerous comparable vessels worldwide.”
Knut Müller, Vice President Marine & Defense at Rolls-Royce business unit Power Systems, said: “We’re very proud of the fact that Babcock International Group has opted for MTU propulsion and on-board power solutions on this highly significant project. MTU products now feature in almost all current and future projects of the Royal Navy. That is impressive proof of the trust our British partners place in us and of the reliability and flexibility of our products.”
The Royal Navy relies on Rolls-Royce propulsion solutions across its surface and submarine fleets. MTU Series 2000, 4000 and 8000 units will feature in future in most Royal Navy warships – in destroyers (Type 45), all frigate classes (Type 23, 26, 31) and submarines (Astute class).
Rolls-Royce is to supply complete MTU propulsion systems for five new Type 31 general-purpose frigates for the Royal Navy. In total, the order comprises of 40 engines and generator sets to be used for main propulsion and on-board power generation, the MTU Callosum propulsion control and monitoring system, and Integrated Logistics Support (ILS).
Rolls-Royce liefert komplette MTU-Antriebssysteme für fünf neue Type-31-Mehrzweckfregatten der britischen Royal Navy. Der Auftrag umfasst insgesamt 40 MTU-Hauptantriebsmotoren und Bordstromaggregate, das Antriebssteuerungs- und Überwachungssystem MTU Callosum und die dazugehörige integrierte logistische Unterstützung (ILS).
Move to expand A330-900neo order book to 35 from 25 addresses Delta’s near-to-medium-term widebody needs and reinforces commitment to fuel, economic and sustainable efficiency.
Delta Air Lines is adding 10 Airbus 330-900neo aircraft to its fleet under an agreement with Airbus and Rolls-Royce, expanding its order of the next-generation widebody jet from 25 to 35. The first delivery of the state-of-the-art aircraft, which is powered by next-generation and fuel-efficient engine technology, is expected next year.
“Expanding our A330 order book not only ensures that Delta’s near-to-medium-term widebody needs are taken care of, but also drives our strategic, measured international growth,” said Gil West, Delta’s Senior Executive Vice President and Chief Operating Officer. “The next-generation engine technology from Rolls-Royce which powers the A330neo provides compelling operating economics, superior fuel performance and the range and coverage for our transoceanic needs going forward.”
These changes are consistent with Delta’s long-term philosophy of investing 50 percent of operating cash flow back into the business, West said.
Delta will be the first U.S. airline to operate the next-generation A330-900neo, which will offer the latest in innovative design and technology for customers. It will be the first Delta aircraft to feature all cabins – Delta One suites, Delta Premium Select, Delta Comfort+ and Main Cabin. The jet also will be the first Delta aircraft to feature memory foam cushions throughout the aircraft for hours of comfort, and the first Delta widebody aircraft featuring its new wireless in-flight entertainment system in every seat.
Simultaneously, Delta has agreed to terms with Airbus to reduce its near-term A350-900 purchase commitment to a total of 15 aircraft from 25. The 10 previously on order A350 aircraft have been deferred to 2025-26 with certain flexibility rights including the right to convert these orders to A330-900s.
“The A350 has been a great success for our customers and our business,” West said. “A fleet of 15 of these world-class aircraft is the right current fit for Delta’s industry-leading global network, operational reliability and award-winning products and services.”
Delta currently operates 11 A350-900 aircraft and expects to take delivery of two A350s in 2019 and two in 2020.
In addition, Delta plans to retire older Boeing 767-300ERs in the years ahead as the aircraft reach the end of their serviceable life cycle.
The Aviation segment has been one of General Electric’s (GE) best-performing units in recent quarters. In the third quarter, the vertical’s revenue jumped 12% to $7.5 billion from $6.7 billion in the previous year’s quarter. However, the segment’s revenue fell slightly short of analysts’ estimate of $7.6 billion.
Aviation revenue accounted for 25% of GE’s total revenue in the third quarter compared to 24% in the previous year’s quarter. The segment’s orders in the third quarter totaled $9.1 billion, up 35% YoY.
