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General Electric and Rolls-Royce were developing engines based on new technology and current engine designs.
Fuel economy estimates are not available, but G.M. said it expected better mileage than the current engine delivers.
"No serious company would allow that to happen and none of the current engine suppliers could allow that to happen because costs would escalate totally out of control.
The total contract could be worth $1.3 billion at current engine list prices, Rolls-Royce said in a news release on Thursday.
The current engine costs about €15 million per season for a team, and each driver in the team has the right to use eight of the engines.
Mercedes has mastered them and is reportedly so satisfied with its current engine that it has switched focus to developing the one for next year.
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The Federal Aviation Administration says that the current engine-failure rate of transport aircraft is about 1 in 100,000 hours of flight.
Current engines are eight cylinders, produce 600 horsepower and are made by Honda exclusively.
Airbus has been promising fuel savings with the A320neo of as much as 15 percent over current engines.
"What the UK wants to do is not only support development of the current engines, but also develop bigger engines for [space] exploration," he said.
Even in the 1950s, rocket scientists realized that the current engines — burning kerosene or hydrogen and spewing flames out the nozzle — are the rocket equivalent of gas guzzlers.
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CEO of Professional Science Editing for Scientists @ prosciediting.com