Rolls-Royce and EDF Energy Collaboration - Civi...

16 September 2009

       ROLLS-ROYCE AND EDF ENERGY TO COLLABORATE ON UK NEW NUCLEAR BUILD       

Rolls-Royce, the global power systems company, today announced plans to
collaborate with EDF Energy, the UK business of the French utility group, on
programmes that will initially support the construction of four new nuclear
power plants in the UK. The agreement covers engineering and technical support
during both the pre and post construction phases. In addition, joint
development, validation and supervision of the supply chain, --> [Author:u]
together with the potential for the provision of --> [Author:u] nuclear related
systems, will be explored.

Lawrie Haynes, President - Rolls-Royce Nuclear, said: "We are very pleased to
be working with EDF Energy and this agreement is another step towards the
delivery of our civil nuclear strategy. With the largest proven nuclear supply
chain of any UK company Rolls-Royce is uniquely placed to deliver world-class
engineering and manufacturing capability to support the delivery of nuclear
power programmes both here and around the world. "

In July 2009, Rolls-Royce announced plans to build a new factory to manufacture
assemble and test systems and components for nuclear power stations. The
facility will have strong links with the UK government-funded Nuclear Advanced
Manufacturing Research Centre in which Rolls-Royce will be the lead industrial
partner.

Humphrey Cadoux-Hudson, Managing Director of EDF Energy's Nuclear New Build
business said: "As a country we face a significant energy challenge to keep the
lights on, tackle climate change and maintain affordable prices. We believe the
challenge can be met through greater energy efficiency and the generation of
electricity from a diverse range of sources including nuclear and renewables.
With the recent combination with British Energy, we are the largest generator
of low carbon electricity in Britain.

"We plan to build four new European Pressurised Reactors (EPR) nuclear reactors
in the UK at Hinkley Point in Somerset and Sizewell in Suffolk. Subject to the
right investment framework being in place we intend to develop 4 EPRs in the UK
by 2025 with the first operational by the end of 2017.

"This agreement with Rolls-Royce is a welcome development in ensuring we
achieve our new nuclear build plans. Their name is one of the strongest
engineering brands in the UK and they have a lot of strength in the nuclear
industry including a history of work for British Energy."

The civil nuclear market is currently worth around £30 billion a year globally
and is expected to grow to £50 billion a year in 15 years time, more than 70
per cent of which will relate to the build and support of new facilities. It is
estimated that the nuclear programme in the UK will sustain 10 -15,000 jobs
over 25 years of which 45% will be engineers.

Rolls-Royce has the largest nuclear skills base in the UK, with an existing
nuclear certified supply chain of 260 companies, and supports a number of key
phases of a civil nuclear programme, including providing advice to governments
and operators as well as technical engineering support. Currently, the Group
provides safety-critical instrumentation and control in Europe, the USA and
many other international markets, including all 58 operating nuclear facilities
in France.

Notes to editors:

Rolls-Royce

 1. Rolls-Royce is a global business providing and supplying integrated power
    systems for use on land, at sea and in the air. The company has established
    strong positions in four global markets - civil aerospace, defence
    aerospace, marine and energy.
   
 2. Rolls Royce delivers wide-ranging capabilities across the nuclear cycle
    from concept to through-life and life-extension. With nuclear expertise
    including component manufacturing, licensing, project management, supply
    chain management as well as world-class engineering, the company has been a
    key player in the nuclear industry for over 50 years. Rolls-Royce is also
    the number one supplier for digital instrumentation and controls for
    nuclear power plants.
   
 3. Rolls-Royce is leading the development of the UK's Nuclear Advanced
    Manufacturing Centre that will bring together an industrial consortium of
    around 30 companies from the UK nuclear supply chain. Universities will be
    selected to host the Centre and lead key research themes.
   
 4. Rolls-Royce currently has the largest nuclear skills base of any UK
    company, with approximately 2,000 employees in the UK, US and France.
   
 5. EDF operates 58 nuclear facilities in France
   
EDF Energy

 1. The combination of EDF Energy and British Energy forms one of the UK's
    largest energy companies. The new EDF Energy is the UK's largest producer
    of electricity and the largest generator of low carbon electricity in
    Britain. Through Our Climate and Social Commitments we have launched the
    biggest environmental and social packages of any UK energy company.
   
 2. We produce around one-fifth of the nation's electricity from our nuclear,
    coal and gas power stations, as well as combined heat and power plants and
    wind farms. We provide power to a quarter of the UK's population via our
    electricity distribution networks and supply gas and electricity to over
    5.5 million business and residential customers.
   
 3. The company is a key player in national infrastructure projects including
    management of private electricity networks serving four London airports and
    the Channel Tunnel Rail Link, the country's first major new railway in 100
    years and has published plans to build up to four new nuclear power
    stations in the UK.
   
 4. EDF Energy and British Energy together employ nearly 20,000 people at
    locations across the UK. EDF Energy is part of EDF Group, one of Europe's
    largest power companies.
   
 5. EDF is the official energy utilities partner and sustainability partner of
    the London 2012 Olympic and Paralympic Games.
   
For further information please contact

Mark Alflatt

Director of Financial Communications

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Nicky Louth-Davies

Director of Corporate Communications

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