Rolls-Royce and Qatar to invest billions in UK green engineering

  • 11/1/2021
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The engine maker Rolls-Royce has entered into a long-term partnership with the Gulf state of Qatar to invest billions in green engineering projects to fund entrepreneurs finding new ways to help transition to net zero. The deal will include the creation of about 1,000 jobs at two campuses – one in northern England and one in Qatar – where climate technology businesses will be created, launched and developed. It is hoped that a further 10,000 roles will be created at the businesses launched at the campuses and in the wider clean-tech economy. The goal is for five “unicorn” companies – private firms valued at more than $1bn (£732m) – to be created at the centres by 2030, rising to 20 by 2040, which would in time provide returns to investors. The design of the campuses and the exact UK location has yet to be decided, and there will need to be access to local skills and manufacturing supply chain. Derby-based Rolls-Royce has several sites and suppliers based in the north of England. The Qatar Foundation, the state’s non-profit organisation created in 1995 to focus on education and research, will provide the funding to develop the campuses and support their operations for two decades. Meanwhile, Rolls-Royce will bring the knowhow in engineering and high-end manufacturing, and will use the centre to develop emerging climate technologies. Startup businesses will be provided with academic help and funding for research and development on campus, combined with early-stage venture capital investment, so they can test, prove and later scale-up their technologies. Rolls-Royce has an ongoing relationship with the state-owned Qatar Airways, which is one of the company’s biggest customers for its Trent jet engines. Warren East, the chief executive of Rolls-Royce, called the transition to net zero “a societal imperative and an excellent commercial opportunity”. He added that the company wanted to accelerate the energy transition in sectors that were the hardest to decarbonise. The firm, which is also pushing ahead with plans to create a fleet of mini nuclear reactors, has pledged to reach net zero emissions from its operations by 2030. “This partnership with Qatar Foundation will enable us to accelerate progress in clean energy, including by allowing us to fully take advantage of nascent technologies that could have a significant impact on tackling climate change,” East said. The venture was announced on the sidelines of the Cop26 climate crisis conference, being held in Glasgow, as the British prime minister, Boris Johnson, met the emir of Qatar, Sheikh Tamim bin Hamad al-Thani. Qatar is the smallest – and richest per capita – of the Gulf states, as well as the world’s biggest exporter of liquefied natural gas. However, its partnership with Rolls-Royce will enable it to take its place in the top five countries globally that are investing in research and development in clean energy. Part of Qatar’s 2030 national strategy involves gradual economic diversification away from a dependence on fossil fuels such as oil and gas.

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