Skylon is an unpiloted, reuseable spaceplane intended to provide inexpensive and reliable access to space. Currently in proof-of-concept phase, the vehicle will take approximately 10 years to develop and will be capable of transporting 12 tonnes of cargo into space.
Skylon will be able to repay its development costs, meet its servicing and operating costs and make profits for its operators whilst being an order of magnitude cheaper to customers than current space transportation systems.
They've recently tested the engine prototypes, so it looks like this is the real deal.
About the Engine
SABRE (Synergic Air Breathing Engine) is a design for a hypersonic hydrogen-fueled air breathing combined cycle rocket engine/turbojet engine/ramjet engine for propelling the Skylon launch vehicle into low earth orbit (LEO). SABRE is the logical continuation of Alan Bond's series of liquid air cycle engine (LACE) and LACE-like designs that started in the early/mid-1980s for the HOTOL project.
The SABRE design combines a lightweight turbine-cycle jet engine with an air precooler positioned just behind the inlet cone. At high speeds this precooler cools the hot, ram compressed air, which allows the jet engine to continue to provide high thrust even at very high speeds. In addition, the low temperature of the air allows light alloy construction to be employed which gives a very lightweight engine — essential for reaching orbit.
The engine also includes rocket engine features which allow the vehicle to reach low earth orbit after leaving the atmosphere after shutting the inlet cone off at Mach 5.5, 26 km altitude.
Awesome stuff.