LONDON - Rolls-Royce is lobbying the UK government for taxpayer support to develop a new aircraft engine called the UltraFan 30, a project expected to cost around £3 billion in total. The company is asking for between £100 million and £200 million upfront to fund a demonstrator, and wants a commitment secured in the first half of this year.
CEO Tufan Erginbilgiç, a former BP executive who has led three years of restructuring at the company, has been personally involved in the push and has discussed the matter directly with Business Secretary Peter Kyle in recent weeks.
The UltraFan 30 is a scaled-down version of the UltraFan widebody engine design, on which Rolls-Royce has already spent over £500 million, and is designed to be 25% more efficient than the company's original Trent engines. The goal is to power next-generation narrow-body aircraft, a market Rolls-Royce abandoned more than a decade ago when it exited a partnership with Pratt & Whitney in 2013.
Rolls-Royce currently only builds civil engines for widebody airliners, but narrowbody planes like the Airbus A320 and Boeing 737 Max represent the largest share of global civil aviation. Airbus and Boeing are expected to choose engines for their next-generation aircraft by the end of the decade.
The UK government is weighing several support options, including grants through the Aerospace Technology Institute, tapping the National Wealth Fund, offering launch aid, or even taking an equity stake in the project. ATI funding is considered complicated given the need to balance support for Rolls-Royce against competing demands from other aerospace players with UK operations, including Airbus and Safran. Germany, where Rolls-Royce also has significant operations, has separately expressed interest in co-funding the project.