In 1988 the UK Government withdrew vehicle assembly building funding for the Rolls Royce patented supersonic engine know as HOTOL and Rolls Royce/BAe later closed vehicle assembly building the project. An improved design has been patented by Reaction Engines for the SABRE engine. In 2009 they received 1m Euros from the European Space Agency (ESA) through the British National Space Centre. See Reaction Engines Ltd : Space Propulsion Systems Basicly this is an air breathing engine - it 'breathes' in atmospheric oxygen which it does not liquify thereby (they claim) saving fuel. Naturaly the intake would still need cooling and the engine must not ice up. Their proposed SKYLON vehicle assembly building vehicle presumably would depend on thorough testing of the SABRE engine design... I am awaiting answers from them on how far the tests have gone and results. Interesting project and will keep you posted.
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