6th Apr 2005 07:25
6 April, 2005 ROLLS-ROYCE AND SINGAPORE PARTNERS TO INVEST IN FUEL CELLS Rolls-Royce has signed an agreement with a Singaporean consortium of companiesto invest together US$100 million in developing a commercially viable powersystem based on fuel cell technology.Having begun research into fuel cell technology in 1992, Rolls-Royceestablished a wholly-owned subsidiary, Rolls-Royce Fuel Cell Systems Ltd(RRFCS), in January 2003 to manage its future research and developmentactivities in this field. By bringing the unique engineering skills ofRolls-Royce to bear, it is intended that RRFCS's work will lead to theproduction of highly efficient, cost-effective and environmentally friendlypower systems.Under the terms of the agreement, Rolls-Royce and the Singapore consortium,EnerTek Singapore Pte Ltd (EnerTek), will between them invest a further US$100million in the project and, after allowing for capital already invested andvalue created by Rolls-Royce, EnerTek will hold a 25 per cent stake in RRFCS.In addition to its financial commitment, the Singapore consortium will bringvaluable technology and expertise to the project, particularly in the areas ofceramics, manufacturing automation and core research. One of the consortiuminvestors, Accuron Technologies, is supplying RRFCS with ceramic componentsthrough its subsidiary company, Advanced Materials Technologies.EnerTek also comprises two other parties: one is an investment subsidiary ofthe Singapore Economic Development Board (EDB), EDB Investments Pte Ltd, andthe other is Temasek Holdings (Temasek), a Singapore-based investment company.Speaking at a signing ceremony and lunch in Singapore today, Sir John Rose, theChief Executive of Rolls-Royce, said: "A prudent approach to this exciting butstill embryonic venture dictated a need to look for partners who could shortenthe odds on success with both funding and relevant technical skills. We havefound them here and are delighted to be building further on the strong tiesthat already exist between our Group and Singapore."Charles Coltman, the Chairman and Chief Executive of RRFCS and formerly theDirector of Corporate Development at Rolls-Royce, said: "The commitment ofUS$100 million in additional funding shows how seriously we and our partnersview this opportunity. We anticipate a significant market for the rightproduct. The science of the fuel cell is no secret - but turning it into anaffordable and competitive technology will need engineering skills of a highorder. We are on track and cautiously optimistic." -2- Present at the event were Dr Vivian Balakrishnan, Singapore's Minister forCommunity Development, Youth and Sports and Second Minister for Trade andIndustry, Teo Ming Kian, Chairman of EDB, Tan Suan Swee, Managing Director(Strategic Development) of Temasek and a designated board member of RRFCS, aswell as Tam Hock Chuan, Vice President (Business Development) of AccuronTechnologies.Teo Ming Kian, EDB's Chairman, said: "Singapore is proud to be a partner toRolls-Royce in such a leading edge development. That Rolls-Royce has chosenSingapore is a strong testimony to our attractiveness as a location to developand commercialise new technology. The venture's success will strengthenSingapore's position as a hub for new energy technologies."Tan Suan Swee from Temasek said: "Temasek sees strong commercial potential inthe solid oxide fuel cell being developed by RRFCS. This technology will beable to generate power more efficiently than a conventional gas turbine orreciprocating engine. We find in Rolls-Royce a strong partner with whom topursue a new business venture in power systems."Loh Chuk Yam, President and CEO of Accuron Technologies said: "We are happy totake part in this venture. We believe our capabilities in ceramic technologywill add value to this partnership." --- 000 --- BACKGROUND NOTES FOR EDITORS 1. Fuel cells generate electricity by combining fuel and air in an electrochemical reaction. They were first demonstrated in the 19th century but to date have always been relatively large and expensive to manufacture, depriving them of any real commercial application. 2. Rolls-Royce began researching fuel cell technologies in 1992 and decided to pursue the commercialisation of its expertise in 2002. By utilising its aerospace technology skills, Rolls-Royce has designed an electrical power system that integrates a solid oxide fuel cell with a micro turbine. This power system promises to be significantly more efficient than any conventional gas turbine or reciprocating engine, with far less impact on the environment. The current objective is a stationary power-generation system providing around 1 megawatt of electricity, for market delivery some time before the end of 2008. For more information please visit: http://www.rolls-royce.com/energy/ tech/fuelcell.pdf 3. RRFCS is at present principally located at the main Rolls-Royce facility in Derby, UK, and also has employees in Singapore and the US. It is in the process of preparing a new site for itself in the UK at Loughborough University's business park, Holywell Park. A first automated production line for some component parts is due to begin operation there by mid-year. 4. Rolls-Royce has recently flagged its intention to seek out appropriate partnerships based on Singapore's wide-ranging research into topics with potential industrial applications. Last December it signed a collaborative Master R&D agreement with A*Star, Singapore's government-owned Agency for Science, Technology and Research. The agreement enables Rolls-Royce to collaborate with A*Star research institutes in many research areas, including materials science and manufacturing automation for the fuel cell programme. 5. Rolls-Royce has strong and long-standing business partnerships withSingapore Airlines (SIA), Singapore Aircraft Leasing Enterprise (SALE), SilkAir (the regional subsidiary of SIA), SIA Engineering Company, the Republic ofSingapore Air Force (RSAF) and ST Aerospace Engines Pte Ltd, an ST Engineeringcompany. Singapore is also the regional headquarters for the company'sCommercial Marine and Energy businesses. In all, the company now has over 500Rolls-Royce and joint venture employees in Singapore. For more informationabout Rolls-Royce activities in Singapore please visit: http://www.rolls-royce.com/singapore/activities/energy.htm 6. The Economic Development Board (EDB) is Singapore's lead agency responsiblefor planning and executing strategies to sustain Singapore's position as aglobal hub for business and investment. It works closely with local and foreigncompanies across a diverse range of activities in both manufacturing andservices to help them move towards higher value-creating operations in anincreasingly knowledge-based and innovation-driven environment. It alsoencourages companies to use Singapore as a headquarters and total businesscentre to manage their global or regional functions to service their global orAsia Pacific operations. For more information on how EDB can help in yourbusiness and investment, please visit www.sedb.com. 7. Temasek Holdings, established in 1974, is an Asia investment company headquartered in Singapore. Its diversified global portfolio of S$90 billion spans Singapore, Asia and the OECD economies in a range of industries. These include telecommunications and media, financial services, property, transportation and logistics, energy and resources, infrastructure, engineering and technology, as well as pharmaceuticals and biosciences. Singapore-based Temasek-linked companies include well-known listed firms such as Singapore Airlines, SingTel, DBS Bank, SMRT Corporation and Neptune Orient Lines. For more information, please visit: www.temasekholdings.com.sg. 8. Accuron Technologies is a precision engineering and technology group headquartered in Singapore, having core competencies in precision manufacturing, material processing and systems design and integration. It serves the aerospace, electronics and medical equipment industries. For more information please visit www.accurontech.com. 9. Rolls-Royce operates in four global markets: civil aerospace, defence aerospace, marine and energy. It is investing in technologies and capabilities that can be exploited in each of these sectors to create a competitive range of products. Annual sales total nearly ‚£6 billion, of which 55% are service revenues. The current order book stands at more than ‚£21 billion. For further information please contact:Martin BrodieRolls-Royce plcTel: +44 (0)207 227 9140email:[email protected] GROUP PLCRelated Shares:
Rolls-Royce