Power Project

Rolls-Royce PLC
21 December 2001


                                                       December 21, 2001

                      ROLLS-ROYCE INDUSTRIAL TRENT HELPS
                         POWER CANADIAN COGEN PROJECT

Rolls-Royce today announced (December 21, 2001) that it has been selected to
supply an industrial Trent gas turbine generating set package to TransCanada
Energy Ltd., a wholly-owned subsidiary of TransCanada PipeLines Limited.

The industrial Trent will be incorporated into a TransCanada Energy 80
megawatt (MW) natural gas-fired cogeneration power plant in Alberta, Canada,
to provide electrical power to a local pulp mill and heat for a steam
generator. Rolls-Royce will also support a six-year maintenance agreement for
this unit.

The industrial Trent is based on the highly successful and market-leading
Trent aero engine and is an extension of the proven industrial RB211 design.

For further information please contact:


Peter Barnes-Wallis

Director of Financial Communications

Rolls-Royce plc

Tel:  [phone]

Fax: [phone]

Website: www.rolls-royce.com