Horizon 2020 Industrial Technologies as an Engine of Growth Ric Parker Director of Research & Technology 19 June 2012

Four global markets – Sales €13.6bn* Civil Aerospace €6.7bn Defence Aerospace €2.6bn Marine €2.8bn Energy €1.4bn R&D Expenditure €1.1bn *2011 Preliminary results €1.2 = £1

Agenda The success of the Framework programme Key Emerging Technologies Horizon 2020 Summary

Agenda The success of the Framework programme Key Emerging Technologies Horizon 2020 Summary

FP’s : Annual aeronautical budgets M€) 35 71 245 700 750 2300

Technology Development New Aircraft & Flight Tests Full Scale Ground Or Flying Demonstrator Large Scale Rig Demonstrators - cross Technology Technology Development Projects New Aircraft & Flight Tests TRL 4-6 3-5 2-4 Level 1 Level 2 Level 3 Level 3+ Funding Rolls-Royce proprietary information

Next Generation Technology Demonstrators

Technology Validation ANTLE – EU and DTI Funded Technology Validation Programme

Towards the More Electric Engine POA Project HP Starter Generator Electric Fuel Metering Unit Fan Shaft Generator Your Notes: Electric Actuators Electric Oil Pump & Scavenge System Active Magnetic Bearing

Clean Sky JTI Technology evaluator The Members of Clean Sky represent 86 organisations in 16 countries Including: 54 Companies 15 Research Centres 17 Universities €1.6 Billion; European Joint Undertaking Green regional aircraft SMART fixed-wing aircraft Green rotorcraft Technology evaluator The Clear Sky JTI initiative is a €1.6 Billion; European Joint Undertaking with Members represent 86 organisations in 16 countries. Including 54 industries, 15 Research Centres and 17 Universities Rolls-Royce actively participates in the Sustainable and green engines program. There are many other aspects of the Clear Sky JTI including green aircraft, operation systems and system designs. Sustainable and green engines Systems for green operation Eco design

Clean Sky JTI Sustainable and Green Engines Low-NOx Flying Demonstrator Advanced Turboshaft Pusher Counter-Rotating Open Rotor There are five demonstrator engines in the Sustainable and Green Engines program. These demonstrators integrate technologies for low noise and lightweight low pressure systems, high efficiency, low NOx and low weight cores and novel configurations such as open rotors and intercoolers. Essentially working towards higher efficiency and lower emissions demonstrator technology for several types of airframes. Advanced Geared Turbofan Advanced Large 3-shaft Turbofan

Progress towards environmental targets More challenging targets set by Flightpath 2050 (Advisory Council for Aviation Research & Innovation in Europe) Trent 1000 is 12% more fuel efficient than Trent 800

Flightpath 2050 Goals to take ACARE* beyond 2020 *Advisory Council for Aviation Research in Europe By 2050 compared to year 2000 datum 75% reduction in CO2 per passenger kilometre 90% reduction in NOx emissions 65% reduction in noise Requires Improvement in all areas Airframe Engine ATM & Operations Strategic Research & Innovation Agenda – goals: Meeting Societal and Market Needs Maintaining and Extending Industrial Leadership Protecting the Environment and the Energy Supply Ensuring Safety and Security Prioritising Research, Testing Capabilities & Education 13

Agenda The success of the Framework programme Key Emerging Technologies Horizon 2020 Summary

Objective of HLG Assess the competitive situation of the relevant technologies in the EU with a particular focus on industrial deployment and their contribution to address major societal challenges Analyse the available public and private R&D and innovation capacities for KETs in the EU Propose specific policy recommendations for a more effective industrial deployment of KETs in the EU Five KETs plus one cross-cutting KET

Three proposals for Europe to stay in the race: A single and integrated approach of KETs A three pillars bridge to cross over the valley of death Successful framework conditions to build the bridge

Agenda The success of the Framework programme Key Emerging Technologies Horizon 2020 Summary

Horizon 2020 - Objective and rationale Acknowledge crucial role of private sector in bringing innovation to the market Aims to make Europe a more attractive location for businesses to invest in R&D and innovation Range of activities in which businesses set the agenda Strong focus on addressing market failures: Insufficent strategic investment in key technologies underpinning innovation across a wide range of sectors Insufficient access to risk capital to set up new businesses and allow them to grow Potential contribution to growth of SMEs not fully exploited

Leadership in enabling and industrial technologies Maintain and build global leadership in enabling and key emerging technologies Underpin innovation across a range of sectors Activities are technology-driven and range from research all the way up to demonstration and piloting Both agendra-driven activities and more open areas Integration in solutions for societal challenges will be supported together with the societal challenges (e.g. through cross-cutting actions)

Leadership in industrial technologies Key Enabling Technologies as a major component This includes: Micro- and nano-electronics Photonics Nanotechnology Advanced materials Biotechnology Advanced manufacturing systems Lay basis for competitive advantages across a range of sectors Important to exploit synergies and complementaries

Smart, green and integrated transport Objective: achieve a transport system that is resource-efficient, environmentally-friendly, safe and seamless Specific activities: resource efficient transport that respects the environment; better mobility, less congestion, more safety and security; global leadership for the European transport industry; socio-economic research and forward looking activities for policy making Proposed funding: €7billion

Long-term consistent technology strategy VISION Vision 5 Near term products Off the shelf technologies In-service upgrades Vision 10 Next generation Technology demonstration Vision 20 Future generation Emerging technologies Rolls-Royce’s technology vision is broken down into three phases. Vision5 focuses on the near term. Next generation technology embodied in Vision10. And Technologies that are currently emerging or as yet unproven lying within Vision20. EIS 2012 2016 2021 2031 22

Vision 10 technologies Lightweight composite fan system Advanced shroudless HPT with rub-in CMC liner Advanced turbine materials Lightweight TiAl LPT Low-NOx Phase 5 or Lean-burn combustor Lightweight, blisked high-efficiency compressors Advanced sealing and externals Advanced high OPR cycles with adaptive cooling

Vision 20 – open rotor

Potential Game Changers 51 Potential Game Changers Integrated electrical systems Engine – Airframe Optimisation Open rotor Advanced Cycles Pressure Gain Combustion Adaptive cycles