FAQ
Q. Is it not the case that aviation in general, and Rolls-Royce in particular represent the most significant threat to the environment?
A. Aviation does create CO2 emissions but globally aviation currently accounts for around 2% of man-made CO2 emissions, compared with 16% from other forms of transport and over 30% from electricity and heat supply. So it's not as much as others, but nevertheless we are still working hard to reduce this as much as possible.
Q. What is Rolls-Royce doing to address the issue of climate change?
A. A top priority is to understand the science of climate change to guide our substantial research and product development programmes of some £700 million per annum, as well as helping to shape our overall business strategy. It is also a vital input into the product design process.
In the short term we are focusing our efforts on improving our existing products e.g. the Trent 1000, which goes into service on the Boeing 787 in 2008, will be significantly more efficient then previous Trent engines (over 12% lower specific fuel consumption relative to Trent 800 which entered service in 1996) and K-type Bergen marine engines, which run on natural gas with up to 90% lower NOx and 20% lower CO2 than emissions from traditional diesel engines.
In the aviation sector, we are successfully working towards achieving challenging performance improvement targets by 2020, set by the Advisory Council for Aeronautics Research in Europe (ACARE). CO2 emissions are to be reduced by 50% per passenger kilometre, noise by 50% and NOx by 80%, all from a 2000 baseline. The reduction in carbon-dioxide emissions will require a 15-20% improvement from the engine, 15-20% from the airframe and 5-10% from improved air traffic management and operational efficiency.
The Rolls-Royce fuel cell is projected to offer efficiencies approaching 70%, as well as deliver improved air quality. Our goal is to have a marketable 1MW product in service by the turn of this decade that would compete with equivalent diesel products that currently address a market worth around $8bn per year.
Q. What is your environmental track record?
A. We are proud of our track record. Since the first jet airliners of some 45 years ago, on a passenger per kilometre basis, aircraft burn 70% less fuel, are 75% quieter and smoke and smell have been virtually eliminated.
Rolls-Royce's manufacturing facilities already operate to high standards of performance. Over the period 1998-2006, Rolls-Royce's turnover has increased by 59% but in absolute terms, energy use in our facilities has reduced by 11%. Total energy consumption including product test reduced by 14% over the same period. Total greenhouse gas emissions reduced by 30%. There have also been major reductions in waste, use of solvents and water.
The company has received a number of external awards and recognitions for its environmental performance.
Q. What is Rolls-Royce's view of biofuels? Can they solve the environmental problems associated with aviation?
A. Gas turbines can be designed to operate efficiently on practically any liquid or gaseous fuel including biofuels. Rolls-Royce, working with specialist partners, is assessing the feasibility of alternative fuels. Biofuels are seen as renewable and therefore capable of contributing to reducing the carbon intensity of the economy. However, their net contribution to reducing carbon must be assessed over the whole fuel cycle. They also raise broader environmental and social concerns over land use.
For aircraft, kerosene is expected to remain the preferred fuel for the foreseeable future as it is safe and has a high-energy content and low freezing point. The company is continuing to explore new developments in this area. Rolls-Royce engines have already been cleared to use a 'synthetic' kerosene blend partially derived from coal rather than oil. There is also the potential to create synthetic kerosene from other feedstocks including biomass, although concerns over fuel cycle efficiency and related technical and environmental issues need to be resolved.
Q. Does Rolls-Royce believe that the UK Government should sanction a new nuclear programme as part of its response to climate change?
A. The UK Government has a target to cut overall emissions in the UK by at least 60% by 2050 in order to avoid dangerous climate change. It is difficult to see how this could be achieved without a substantial percentage of electricity being generated from nuclear power plant. A key challenge will be finding an acceptable means of storing the waste.
Q. Is the Board concerned that in the event of governments taking action to curb emissions in the aviation sector, Rolls-Royce's business will suffer?
A. The challenge of climate change will present a range of exciting opportunities for Rolls-Royce. Many customers will potentially consider investing in new technology earlier in order to minimise emissions. Equally there is likely to be a lot of interest in future low carbon technologies as well as alternative energy sources.
Q. What is Rolls-Royce's position on regulation in general and on emissions trading in particular?
A. Voluntary agreements, sound regulation and fiscal instruments all have a role to play depending on the prevailing circumstances. They need to be well designed, with input from businesses, taking due account of their effectiveness and potential impact on competitiveness. Society needs to cut back substantially on overall CO2 emissions and in doing so needs to decide how to spend its "carbon allowance". Measures such as the Emissions Trading Scheme aim to cap emissions in the most cost-effective manner.