The essential innovations include a compact pre-cooler heat-exchanger that can take an incoming airstream in the region of 1,000C and cool it to -150C in less than 1/100th of a second
It's amazing (and such rapid heat exchange has applications outside of aerospace).
The heat removed from the incoming air is then transferred to the fuel/oxidiser so it actually *increases* the power of the engine.
REL went bust (as is the way for all innovative British engineering projects) but the IP (presumably followed by the staff) has been bought up by Frazer Nash, a UK subsidiary of the US engineering giant KBR. They're working with ESA to build a flight demonstrator.
Not sure it has a real future for spaceflight though. SpaceX have shown that you can reuse nearly all of a rocket with vertical landing on a basic concrete pad. An orbital version would need its own (massive) runway well away from settlements due to the noise so would have huge infrastructure costs. I suspect the more realistic applications will be military
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