Brussels, 31/10/2001 (Agence Europe) - On Tuesday, the European Commission approved the UK government's plan to grant Rolls-Royce plc a £ 250 million reimbursable loan for the development of two large aircraft engines, the TRENT 600 and TRENT 900.
The two engine programmes are very ambitious turbomachine programmes as they will have to comply with very strict pollutant emission, fuel consumption, safety and noise regulations, while keeping a reasonable weight. The advance will be reimbursed to the UK government by Rolls-Royce, assuming the programme is successful, based on a levy on engine deliveries and maintenance and support activity. The Commission analysed the project in the light of the EU framework for state aid for research and development and concluded that the project's eligible costs were in line with the framework criteria, that the intensity of the aid was compatible with the threshold applicable to reimbursable advances in relation to pre-competitive development activity, and that the aid had a clear incentive effect, especially in terms of its ambition and the significant technological risks inherent in the programme.