Engineering giant Rolls-Royce is set to benefit from a £1 billion investment in climate technology into the UK by Qatar.

The Government has hailed the landmark agreement, which will create thousands of skilled jobs and see the launch of hubs across the UK and Qatar to accelerate development in climate-friendly technologies.

This includes investment in technology programmes by Rolls-Royce that improve energy efficiency, support new sustainable fuels and lower carbon emissions.

Last week, during Qatar’s State Visit to the UK, Prime Minister Keir Starmer and His Highness the Amir of Qatar, Sheikh Tamim bin Hamad Al Thani marked the agreement at Downing Street.

The Prime Minister said: “Qatar and Rolls-Royce pursuing these opportunities in climate technology is a significant step in our ambition to become a clean energy superpower and further evidence that the UK is one of the best places in the world for companies to develop those technologies.”

Prime Minister of Qatar HE Sheikh Mohammed Abdulrahman al Thani said: “Qatar is already one of the largest purchasers of Rolls-Royce engines for Qatar Airways and a major investor in the small modular reactor nuclear industry. This new partnership further strengthens Qatar’s position as a leading global investor in climate technologies.

Tufan Erginbilgic, chief executive of Rolls-Royce, which has its Civil Aerospace and Defence divisions in Derby, said: “In the last two years we have made significant progress in the transformation of Rolls-Royce. This announcement is further evidence of our progress to create a highly competitive and fast-growing company.”

It is expected that the climate technology hubs delivered through the partnership will be developed across the UK, alongside universities, industry, free ports and the Qatar Free Zone to leverage the UK’s expertise.

Sites in Qatar will also enable start-ups to access markets and opportunities in both countries – paving the way for further inward investment.

Rolls-Royce is currently developing a number of technologies across its business to help tackle the impact of climate change.

This includes mini nuclear power stations through its Rolls-Royce SMR business – and running aero engines on Sustainable Aviation Fuel.

Mr Erginbilgic said “Enabling the energy transition through lower carbon technologies is a key part of our strategy.

“We are delighted to welcome Qatar as a strategic partner, who will support the growth of these technologies.

“They share our ambition to make an impact on the challenge of climate change.”

Business and Trade Secretary Jonathan Reynolds said: “This partnership between Rolls-Royce and Qatar is not only a huge vote of confidence in the UK but will also help create thousands of highly skilled jobs.

“Our commitment to becoming a clean energy superpower is steadfast, and investments like these make a huge contribution to bolstering the UK as a leader in climate technology.

“We’re showing investors that Britain is back as a stable place to do business, helping to secure the investment needed to make every part of our country better off.”