The objective of APOS-EU is to develop optimised versions of scientific and industrial codes which are scalable and portable across heterogeneous and homogeneous architectures. Codes will be chosen from the areas of seismic processing, magneto-hydrodynamics, percolation, molecular modelling and CFD. Scalability to thousands of cores will be a principal goal of the work. In parallel with the development of the codes, prototype tools, starting from the current state of the art, will be interactively developed, deployed and refined. The proposal falls within Part C of the call Objective ICT-2009.10.2 EU-Russia Research and Development Cooperation. This proposal is a small, but important step on the road to innovative, advanced simulations and tools to support their development. Real-world applications will be used to test and evaluate methodologies for developing massively parallel, highly scalable applications and for testing relevant tools. This will provide an important reference to code owners both ISVs and those with in-house codes. It will provide important feedback to tool developers on the requirements of porting real applications to the new generations of machine. The successful outcome of the project will constitute an important advance in the state of the art and will have immediate industrial and economic impact. The work in APOS-EU will be complemented by that in the Russian proposal APOS-RU which addresses two important application areas namely high-resolution 3-D seismic processing and atomic simulation codes based on many-body interatomic potentials. Both these areas create opportunities for common work between the EU and Russian consortia on the development of algorithms and on the use and development of tools for parallelisation.