VOLUME 2 • ISSUE 7 www.spaceindustrybulletin.com Space Industry Bulletin Market analysis and business intelligence for the space community Commercialising LEO will need destinations beyond the ISS

ommercialisation of low investors. And it will depend on and a few private companies Earth orbit will require having destinations beyond just does not make a sustainable in - Cnew models for public- the International Space Station. frastructure. So how do we build private partnership, and it will be For almost two decades, the this community? built on a technology infras- ISS has been the sole hub for Kerry Timmons, LEO com - tructure that will include the commercialisation activities, pro - mercial programme manage - CONTENTS likes of robotics and machine viding unique access to research ment lead at Lockheed Martin learning. and development in a micro- Space, said: “It requires collab - Industry news 2 But commercial success will gravity environment. oration. It needs ‘old space’ and l Virgin Galactic to go public hinge on an infrastructure that Doug Comstock, deputy chief ‘new space’ working in partner - following merger “buys down the risk” for financial officer for integration ship. It needs the commercial l Launch of balloon marks the commercial partners and at NASA, said: “The ISS has 14 market to be energised to bring beginning of a new space era different facilities built by 11 dif - their money and ideas to space.” l Innovation loans offer a share of ferent companies. We don’t want When we talk about commer - £10m funding a gap in capability for human cialising LEO, it’s important to l Galileo outage helps build the access to LEO.” recognise that space is not the case for sovereign UK GNSS Along with destinations, suc - first frontier, and also that Earth l OneWeb takes sustainability into cessful commercialisation of LEO imagery is an industry success orbit and calls on the wider industry will depend on a community, story. to follow suit l Space electronics market set because a single government l Full report page 8 to see CAGR of 5.22% to 2024

Space industry barometer 6 Leaving the EU is foremost in l Leaving the EU is foremost in UK space companies’ concerns

UK space companies’ concerns Space economy 8 l Commercialisation of LEO needs rexit dominates compa - at the Government, with com - destinations beyond just the ISS nies’ concerns for the panies feeling that it seems paral - coming quarter, with ysed. B Space insurance 12 space sector businesses lament - These are some of the find - l Underwriters stay calm, while ing the loss of access to the EU ings of the inaugural Space In - liability grows as a concern just as those nations are increas - dustry Barometer, which sought ing their investment in space. to gauge industry sentiment on Funding and financing 16 With all the pressures that a range of issues over the coming l Betting on the stars: what value this will bring with lost access to quarter. Agency and Satellite Applications can investors find in space? Galileo and Copernicus, the po - Respondents were scathing Catapult, with respondents be - tential for trade tariffs and in - of the lack of support for the moaning repeated hollow policy UKSpace Q2 review 15 creased difficulties in recruit - sector from Government and statements. ESA invitations to tender 18 ment, there are criticisms levelled bodies such as the UK Space l Full report page 6 UK Space Agency accounts 20

THIS ISSUE IN NUMBERS...

$Val3ue 6of t0he bglonbal Ne£w f1un0dinmg from Net£ ex4pen3di1turem by the Perce8nt3age% of space CA5GR. t2o 22024% in the Sp£en6t b5y th.e4 UKm SA in space economy in Innovate UK for UK Space Agency in businesses very space electronics 2018-19 on national 2018 products and services 2018-19 concerned by Brexit market space programmes Page 17 Page 3 Page 22 Page 6 Page 4 Page 20 Industry news

Virgin Galactic to go Launch of public following merger beginning uly has seen the launch irgin Galactic is from Shetland Space preparing to go public JCentre of a stratospheric Vfollowing a merger with balloon as a test of a system Social Capital Hedosophia that will eventually deliver (SCH). The boards of both small satellites into orbit. companies have approved a Developed by Bristol- definitive agreement under based B2Space, the balloon which they will merge, with was a scaled down version of SCH shareholders gaining its ‘Rockoon’, carrying approximately 49% of the complete sets of instruments, combined company. trackers and control boards Upon the closing the up to a height of around transaction, which is expected 37km, as well as beam back in the second half of 2019, profitable commercial service. Chamath Palihapitiya, images from an on-board Virgin Galactic will be Having reached launch founder and CEO of SCH, said: camera. introduced as a publicly traded milestones in 2018 and earlier “We are confident that Virgin B2Space co-founder commercial human spaceflight this year, the board of Virgin Galactic is light years ahead of Valentin Canales said that the company. Galactic believes that the the competition. It is backed by purpose of the test flight was Virgin Galactic believes it additional capital provided by an exciting business model and to confirm the company’s has now reached an inflection the merger with SCH will an uncompromising ability to operate from point in its development as it provide the company with the commitment to safety and Shetland by progresses towards launching support needed to reach customer satisfaction.” gathering commercial operations. In commercialisation. Marking a further milestone data, particular, by demonstrating Virgin Galactic CEO George for the Virgin group, sister the repeatability of the full Whiteside said: “This company Virgin Orbit launched flight profile through the transaction represents the next a drop-test of its LauncherOne completion of two crewed step of our exciting journey. We rocket, releasing it from a spaceflights, the company believe it will offer us the Boeing 747 in mid-flight. The believes it has overcome a financial flexibility to build a test was to observe how the substantial number of the thriving commercial service rocket detached from the 747’s technical hurdles required to and invest appropriately for the wing and its freefall, prior to an make the company a viable and future.” orbital launch later this year. Galileo outage builds case for UK GNSS

he bodies tasked with With access to decision through. But it must assessing the Galileo likely to be also provide defined benefits, Tpotential for denied following the not least of which is UK sovereign UK GNSS system UK’s access to the UK, controlled space capability that can’t fail to have noted the some £92m has been will strengthen national technical issues that hit committed to building resilience and provide secure Galileo over the weekend, the business case for assured PNT. with an incident relating to the UK GNSS for the But it must also demonstrate its ground infrastructure delivery of PNT the UK as a major global player interrupting navigation and services. That funding and provider of PNT services, timing services. has been approved for and boost UK prosperity by At the time of writing, service implement recovery actions. the engineering design and providing new high-tech had not yet been restored and Devices using the GSA system development phase of the opportunities in the space the European Global Navigation have switched to the US GPS project. sector, while stimulating Satellite Systems Agency (GSA) system, which will have been Following the EDDP, a innovation in sectors that utilise reported that experts were something of an embarrassment decision will be made on PNT services. working to restore the situation to the GSA itself, which had whether to proceed with a UK A UK Space Agency as soon as possible. An anomaly positioned Galileo as a robust GNSS system, but any lack of programme has been board has been set up to and reliable alternative to the reliability with Galileo would established, with support of the analyse the root cause and to Global Positioning System. presumably help in pushing that MoD, to develop the options.

2 www.spaceindustrybulletin.com Industry news Innovation loans offer a balloon marks the share of £10m funding of a new space era icro, small or medium sized enterprises can adding to theoretical studies will support a case for a Mapply for a share of carried out on the last 15 years permanent base in Shetland, £10m in funding for highly of weather data. not only launches into orbit innovative, late stage projects The technology for but also for performing near with game-changing ideas and launching a rocket from a high space operations such as concepts. Loans of between altitude balloon is an evolution testing satellite components £100,000 and £1 million are and improvement of a 1950s in conditions similar to the available per project. concept proposed by the US ones faced in orbit. Projects should develop new Navy. It takes advantage of Declaring himself satisfied products and services, or highly skipping the highest density with the test launch, Mr innovative uses of existing ones, part of the atmosphere which Canales said: “We have a large that are significantly advanced allows a more optimised amount of data to analyse, but of anything currently used. July in Brighton, Birmingham, design and a more cost- from what we know already These can come from any London, Daresbury and Sheffield effective solution to launch we can confirm that we intend technology and in any part of the where organisations can find out small and micro satellites into to set up a base here in Unst in economy, as long as they are more about the competition and low earth orbit. preparation for future sufficiently disruptive. Projects the process of applying. The B2Space is working on the launches. Interest from ESA must focus on registration close date is 11 project with the European and the UK Space Agency is commercialisation, growth or September 2019. Space Agency, and believes it huge. We know the technology scale-up, and priority will be Loans will cover up to 100% will work, and this launch was given for projects likely to lead to of eligible project costs. They are the first step, with many growth in productivity. described as having favourable more to come.” Projects must show: a clear terms (particularly a below- game-changing idea; how the market rate of interest) so the idea can lead to innovative value of this benefit over the life products, processes or services of the loan will be the equivalent significantly ahead of the of a grant and will be a form of current field; and practical state aid. For experimental financial plans development projects this grant Loans will be declined for equivalent, as a proportion of businesses that are considered the eligible project costs, can be unable to afford the interest and up to 45% for micro or small repayments on the loan. Briefing businesses and up to 35% for events will be held throughout medium-sized business. OneWeb takes sustainability into orbit and calls on industry to follow suit

neWeb reaffirmed its operational practices. OneWeb development of new focus on responsible believes sustainable business technologies, jobs, Ospace practices with practices are required to and industries, as three commitments at the support the long-term use of well as to increase Summit for Space Sustainability, Space for all. The orbital research, and called on the wider industry environment must support investment, diversity, to do the same. healthy competition, and cannot and inclusion in local The commitments are born be allowed to become polluted, communities. the greatest impact these efforts from OneWeb’s firm belief that dangerous, or disruptive to Finally, from global will have to leverage the the entire space industry bears a scientific, educational, connectivity to new industry and combined strength of an shared responsibility for government, or commercial humanitarian relief, OneWeb industry of innovators. ensuring the potential of the endeavors. believes the space industry has OneWeb CEO Adrian Steckel new frontier in mobility, The second commitment is a responsibility to work with said: “We and our peers have a communication and to develop the space ecosystem governments to advance causes once-in-a-lifetime chance to connectivity is realised for the for the benefit of all participants. where it can have a build an industry from the long-term. The first OneWeb believes the space transformational impact and ground up, designing it with our commitment is to employ ecosystem should offer a shared solve some of the world’s most aspirations for sustainability and responsible space by design and opportunity to facilitate the challenging problems. To have societal benefit at its heart.”

www.spaceindustrybulletin.com 3 Industry news Space electronics market set to see CAGR of 5.22% to 2024

nalysis of the global GLOBAL SPACE ELECTRONICS MARKET BY PLATFORM TYPE space electronics Aindustry highlights that the market generated $1.27 billion in 2018 and is expected to grow at a CAGR of 5.22% during 2019-2024. North America dominated the global space electronics market in 2018, whereas, Asia-Pacific is expected to have the highest growth rate during the forecast period 2019-2024. 2018 2019 2020 2021 2022 2023 2024 2025 2026 These are some of the Satellite Launch vehicle findings of a new report, ‘Global Space Electronics Market, Analysis and Forecast, 2019 to environment for radiation- radiation-tolerant depending cost and development time to 2024’, which notes that growth hardened electronics are upon the mission. Since fulfill a mission. in the space electronics market hampering the overall market electronic components play a “Therefore, the sophisti- is driven by a number of growth. huge role in the success of a cation of the electronic aspects, such as significant Electronic components, mission, there have been products and, the designing of investment in satellite which are equipped in satellites, continuing advancements in scalable electronic components manufacturing, technological launch vehicles, and deep space semiconductor and electronics with open standards and advancement in micro- probes, hold huge importance, technology, leading to the architectures are made possible processors and FPGAs, and and require verification and development of small and light- due to the miniaturisation of growth in the global launch testing in order to ensure their weight electronic products. the components.” vehicle industry. functionality. This is largely due The report segments the Moreover, a collaboration to the high degree of radiations Growth opportunities global space electronics market between space agencies and in the space environment. Going forward, the adoption of into different applications: private companies to develop Space contains a high degree of new materials to manufacture satellite, launch vehicle and an advanced and miniaturised radiations that can potentially space electronics and deep space probes. The satellite component is further leading cause anomalies in the increasing demand for segment acquired the largest the growth in the global market. operability of space electronics reconfigurable satellite share in 2018 and is anticipated For instance, in 2018 0US Air components. payloads are anticipated to to remain dominant during the Force Research Laboratory and Single-event effects (SEEs), create numerous opportunities forecast period, 2019-2024. NASA awarded a contract of electrostatic discharge (ESD), for market growth. In addition, the global space $25.9 million to the Boeing total ionizing dose (TID), and Research analyst Vaishali electronics report, shows that Company Solid-State cumulative radiation damage Sharma commented: “Small the space electronics market is Electronics Development are the major concerns for the satellites have a huge potential also classified depending upon segment to develop radiation- space electronics market. for easy and cost-effective the components, ie integrated hardened High-Performance Therefore, component access to space. Currently, circuit, mixed and analogue Spaceflight Computing (HPSC) designing is done in such ways small satellites are creating a signals, discrete semi- Processor Chiplet program. that electrical components can huge potential market for the conductors, optoelectronics, However, factors such as operate and survive reliably in COTS. In recent years (2013- sensors, memory, and electrical high cost associated with the high-radiation environments. 2018), a number of companies power system. The integrated design and development of The electronic components and space agencies have circuits segment had the space and difficulties in used in the space are either planned to use smaller highest market penetration in creating a real testing radiation-hardened or satellites as it has lower launch 2018.

Space Industry Bulletin is available on UK subscription at a cost EDITORIAL DIRECTOR: Mark Simms PUBLISHED BY of £360 per year for 12 issues. Overseas subscriptions are: Europe Tel: +44 (0)1732 773268 Industrial Technology Ltd (including Eire) €450 or £400, USA $540, Rest of the World £450 Email: [email protected] Victoria House or $580. For academic subscriptions and multiple copy discounts, 2 Mornington Road visit our website, or call us on +44 (0)161 495 9078 COMMERCIAL DIRECTOR: George Bennett Sale Tel: +44 (0)161 495 9078 M33 2DA Volume 2, Issue 7 • July 2019 Email: [email protected] United Kingdom

4 www.spaceindustrybulletin.com Newport, Wales 24-26 September 2019

Wales will play host to the 2019 UK Space Conference. This biennial flagship event brings together the entire space community, including government, industry, academia, research and financial communities. The conference will offer the space community unrivalled opportunities to meet, network, do business and shape the landscape for the coming years.

The event will be held at the International Convention Centre (ICC) Newport, Wales

The UK Space Conference is considered the most influential event for the space community, bringing together government, industry and academia, to build links, share opportunities and address mutual concerns at a crucial time of unprecedented change and growth for the sector.

The 2019 conference is set to be the biggest and most significant event to date with over 1,200 We are working with the space delegates anticipated. The ICC Wales, an £84 sector to build on our significant million investment development, is due to open capability and maximise the benefits shortly before the 2019 event. This biennial “ conference has been held previously in Glasgow, of space to life on Earth, creating jobs Liverpool and Manchester, with the first held in 2011 in Warwick. and opportunities across the country.

The UK Space Conference provides a vital forum for the UK space sector, academia and policy The UK Space Conference is a makers to network, debate, form new fantastic event for sparking the kind of collaborations, and do business. collaborations and partnerships that will help our sector grow. I am For further information, please contact the event team: delighted that Wales will be hosting E: [email protected] the 2019 conference and I’m sure it T: +44 (0)117 906 4573 Twitter: #ukspace2019 will build on the huge success of the follow @ukspace2019 2017 conference in Manchester.

Dr Graham Turnock CEO, UK Space Agency ” UK space industry barometer Leaving the EU is foremost in UK space companies’ concerns

rexit dominates companies’ concerns WHAT ARE YOUR CONCERNS ABOUT THE INCREASING COSTS OF DOING BUSINESS? for the coming quarter, with space sector businesses lamenting the loss B Access to funding for of access to the EU just as those nations are product development increasing their investment in space. Asked how confident they were that their Access to funding company will see growth in the coming for export quarter, respondents returned an average score of 49%. But that doesn’t tell the whole Liability and story. A number of companies were indemnity costs supremely confident, with many responses above 75, a few in the 90s, and a couple The new satellite indicating that they were 100% confident filing charges that they would see growth. At the other end of the scale, almost a Existing trade tariffs third of respondents registered confidence scores of 25% or less, including three companies who saw virtually zero possibility Potential post-Brexit trade tariffs with the EU of growth in the third quarter of the year. A key question as we lead up to the UK’s departure from the EU in October is how this will impact on companies in the space sector. Just over 60% of respondents as importantly, there are huge unknowns particularly in France and Germany. The indicated that they were very concerned, around how services can be traded after Satellite Applications Catapult competes for and only 5% of companies said that they Brexit. One respondent questioned the business with UK space companies rather were not concerned at all. impact of the loss of access to EU than promoting the sector. And with so little One respondent highlighted the impact institutions just at a time when they are tangible national support and difficulty in that the removal of access to Copernicus will increasing their take-up of space related recruiting international skills, serious have, significantly impeding opportunities services. mitigation plans such as relocation need to for growth for years to come. Another be considered.” pointed out the loss of access to Galileo, Competitive market suggesting that this would be catastrophic With potential higher costs, will UK Space Sector Deal for a number of companies in the sector. companies still offer value for money in a The promised Space Sector Deal, Beyond these two very specific areas of competitive international market? And with announced almost exactly a year ago at the business, many respondents lamented the freedom of travel impeded, will UK Farnborough Air Show, has failed to lack of access to EU markets without trade companies struggle to recruit the people materialise, and this was a concern for tariffs, particularly with the EU being a major they need? Or, indeed, might there be a almost 39% of respondents. The hope has customer. And then there is the potential for ‘brain drain’ from the UK? been that the sector deal would provide shipping issues and delays as problems are One respondent was particularly concrete support for the industry, where sorted out following the UK’s exit. scathing, saying: “The Government is previously there has only been “repeated Also, there is the possibility that carnets paralysed. Major programmes, even if not hollow policy statements”, and that it would will be required initially to transport goods EU-centred, are EU linked. The UK Space provide a long term plan to develop between the UK and the EU, which one Agency does not fight the UK corner in the investment and business growth strategies. respondent described as “a nightmare”. Just way that other national agencies do, However, while many companies anticipated that a formalised Space Sector BAROMETER SURVEY RESPONDENTS BY INDUSTRY Deal would raise confidence and create an Research institutions 5% environment in which investment should Earth Observation and other downstream services 25% increase, there were those among the respondents who felt that the deal was more Satellite engineering and satellite communications 25% likely to hinder business, since “government Propulsion system/launch vehicle engineering 10% money would go to whatever meets the criteria of the Space Sector Deal instead of Launch services 5% towards the innovative technologies we Consultancy services 10% develop” if those technologies don’t fit with Security and defence 10% the current vogue. Another respondent felt that the deal as Space software 10% it has been discussed “appears to be

6 www.spaceindustrybulletin.com UK space industry barometer

WILL THE UK’S EXIT FROM THE EU IMPACT ON YOUR BUSINESS? economies. This is not yet a major concern for most, with over 70% of respondents saying that they were either not at all Very concerned concerned or only somewhat concerned. Interestingly, with two sites in the UK already planned to provide launch services and several others highlighting their own Somewhat potential, combined with the plethora of concerned companies either already offering launch services or racing to offer those services, 72% of respondents said the UK’s current lack of launch capability was having no Not concerned impact on their business. No companies flagged it up as having a major impact, and only 11% believed it was having even a minimal impact. The possible conclusions from this are either that the need for launch capability in this country has WILL THE LACK OF A SPACE SECTOR DEAL IMPACT ON YOUR BUSINESS? been greatly overestimated, or that it will bring new income into the UK’s coffers.

Very concerned Costs of doing business Looking at the increasing costs of doing business, we sought to identify some of the most pressing concerns. Some 83% Somewhat returned to the potential post-Brexit trade concerned tariffs with the EU, but 61% also flagged up access to funding for product development as being a major concern. Other companies highlighted access to finance for export Not concerned (22%) and liability and indemnity costs (28%) as impacting on their business. Focusing on some of the general comments, concerns were understandably dominated by Brexit, with one respondent noting that while EU work will be lost quickly, HOW CONCERNED ARE YOU ABOUT COMPETITION FROM EMERGING ECONOMIES? replacing it at the same rate with work from other nations will be much harder. Another lamented the lack of access to working capital, with the sector being poorly Very concerned understood in the debt finance world. But perhaps most damning in the month where the UK Space Agency has published Somewhat its annual results and is trumpeting its concerned successes, and number of respondents bemoan the lack of meaningful support from the UK’s space institutions. Along with the UK Space Agency, we also have the Satellite Not concerned Applications Catapult and various Government departments focused on business and export, yet SMEs in the sector feel isolated and ignored. One respondent specifically cited the lack of support for micro SMEs from the UK stitched up by the large companies”, a view work in practice. “The details of the Space Space Agency and the Satellite Applications that was echoed by a respondent who said: Sector Deal and how it will actually work are Catapult in particular. “In principle any support from government is not really forthcoming,” one respondent told good. However for micro SMEs there has us. “Also, are those who are driving it doing l The Space Industry Barometer survey been limited support in the past, and funding this from the view of old traditional space?” was conducted between 1 July and competitions require too much co-funding to 11 July 2019, with 412 companies invited get an idea off the ground without involving Emerging economies to respond. All responses were much bigger players.” In light of the failure of the Space Sector Deal anonymous, with companies only asked While there was recognition of a need for to materialise, combined with the impact of to indicate their area of business. The a national space programme, there were the UK’s exit from the EU, we asked about next Barometer survey will be conducted questions as to how the Space Sector Deal companies’ concerns on the threat of in the first week of October, just prior to would dovetail with this and how it would increased competition from emerging space the UK’s exit from the EU

www.spaceindustrybulletin.com 7 Space economy Commercialisation of LEO needs destinations beyond just the ISS

ommercialisation of low Earth orbit EXPANDED COMMERCIAL USE OF ISS will require new models for public- Cprivate partnership, and it will be built on a technology infrastructure that will include the likes of robotics and machine learning. But commercial success will hinge on an infrastructure that “buys down the risk” for commercial partners and investors. And it will depend on having destinations beyond just the International Space Station (ISS), with other facilities required. These were some of the conclusions of a seminar hosted by the Potomac Institute for Policy Studies’ Center for Enterprise, Exploration and Defense in Space (CEEDS) at the end of June, examining the potential for low Earth orbit commercialisation. The panel explored what opportunities NASA has reserved a set amount of resources intended to serve commercial and exist in this burgeoning environment and marketing activities, as shown above. And it has put together a price list for provided input on how the private and public resources. Those available immediately include upmass, trash disposal and sectors can work together to eliminate downmass of passive cargo, and round trips for conditioned cargo and powered barriers to success, craft effective incentives cargo, all priced per kg. In the future there will also be resrouces for private for partnership, and coordinate resources to astronaut missions, with prices for crew supplies, stowage, power and data downlink. jumpstart a self-sustaining commercial marketplace in low Earth orbit. Commercialisation of space has long He highlighted the ongoing development Martin Space, saw parallels within the rail been a dream of policy makers, but now it is of the private-public partnership between industry, saying: “The rail companies owned accelerating. The plummeting costs of Nanoracks and NASA, describing it as land and buildings in different locations, and launch have improved our ability to maturing. “When we started Nanoracks 12 this provided the incentive for the rail commercialise space, while record years ago, there were huge battles from infrastructure to grow.” The implication is investment in start-ups means that lots of NASA about how a private company could that LEO commercialisation will need small companies are coming into the be on a tax payer platform, charge our own destinations beyond just the ISS. domain. prices and keep the revenue. Today, through Importantly, as a number of panellists at a succession of space acts, the picture has Commercial destinations the seminar identified, space is not the first changed. There is a growing willingness to For almost two decades, the ISS has been frontier, and there are precedents and see the private sector unleashed on LEO.” the sole hub for commercialisation activities, lessons to be learned from other industries. Doug Comstock, deputy chief financial providing unique access to research and This can inform governments and officer for integration at NASA, added: “The development in a microgravity environment businesses alike as to how the public-private definition of commercial is not black and – not only for the US Government but also partnership can work, as well as to what white. It’s a continuum. At one end you have for private industry and researchers. This commercialisation might look like and the the traditional government contracts where demand will only continue to grow, as new infrastructure that will be required. all the risk is on the government and the opportunities are discovered and pursued, For those who question the wisdom of government is the only customer. At the with in-space manufacturing being cited as the public-private partnership, and whether other end space products and services a principal example. it’s right for private companies to be making become commoditised, as with communi- The anticipated working life of the ISS profits off the back of tax payer-funded cations services where you can buy satellite was recently extended to 2024, and there is infrastructure and facilities, Jeffrey Manber, bandwidth and as commodity. And there is a a further Act on the table within the US CEO of Nanoracks, said: “Lots of what we’re whole raft of activities in between. Government to extend activities on the ISS struggling to start here is not unique. If you “Different services are at different points beyond this to 2030. But NASA’s own plans look at the history of aviation, there are on this continuum, but the direction we’re look beyond even this to a need for strong parallels for space. moving in is towards the commercial end. additional space stations to support “Today, no one questions that the tax This is the framework we envision for LEO, commercial applications. Mr Comstock said: payer is paying for the airports,” he but it’s a multi-decade effort. And we’re “The ISS has 14 different facilities built by 11 continued. “What would the ticket price be if currently only a couple of decades into it.” different companies. We don’t want a gap in the airlines had to pay for the airports. Every Looking at other sectors we could learn capability for human access to LEO.” industry has had a public-private from, Kerry Timmons, LEO commercial Highlighting a need for destinations partnership in varying degrees.” programme management lead at Lockheed beyond the ISS, and defining what its own

8 www.spaceindustrybulletin.com Space economy

OPPORTUNITIES TO STIMULATE DEMAND commercial approach, believe that there are going to be billions of dollars in LEO. “There To financially sustain a commercial ties in LEO particularly for human-rated are not,” he said. With the ISS and the space platform in LEO, NASA is interested in commercial destinations. By reducing cost stations that are to come being controlled by developing new markets beyond the and technical barriers for access, industry so many different nations and organisations, traditional research and technology can reach profitability sooner. he added: “It’s going to be difficult for NASA development market and reducing the cost To this end, NASA has requested and the like to extract revenue.” and technical barriers for access to low- proposals for commercial concepts with a Highlighting the limited revenues within Earth orbit. If NASA is to achieve its goal of focus on the areas of in-space the market, Mr Manber pointed to the tight becoming one of many customers of a manufacturing, regenerative medicine and finances within even an acknowledged future commercial destination, a targeted bioengineering, and will also consider market leader like Nanoracks. “In the US, the strategy for enabling the development of a other fields that may lead to a scalable, government is behaving more and more as a sustainable, scalable, and profitable non- financially self-sustaining demand forLEO customer. For Nanoracks, we have NASA as NASA demand for low-Earth orbit services capabilities. a customer, we have the European Space must be implemented. Successful ventures will further mature Agency as a customer. But we still live from The traditional grant-funded research concepts with potential for scalability, such launch to launch. It’s not an easy business.” demand for low-Earth orbit services has as returning high-value items for terrestrial While Nanoracks has built its business on proven over many years to require use, capturing sizeable markets or creating supplying hardware for the likes of the ISS, substantial subsidies from NASA, including new markets, and disrupting existing Lockheed Martin Space is looking at fully-subsidised up mass, crew time, on- technologies by taking advantage of the applications that can use those facilities. orbit accommodations, power and data, ISS, and eventually follow-on human-rated “We’ve looked at several different business etc. It is highly unlikely that future NASA destinations in low-Earth orbit. cases for different products,” said Ms budgets will be sufficient to pay virtually all NASA seeks concepts that, if Timmons. “In-space manufacturing is an of the operating costs of a commercial successful, will utilise a breadth of area where we’re really focusing. If you look platform. capabilities: they will benefit from the at some things that are easier to Therefore, NASA must enable the scalability that commercial platform(s) can manufacture in space, then you could close development of high-value capabilities in provide; their transportation needs will a business case there. And we’re working on the near-term during its continued use of support the growing US crew and cargo building up our own internal infrastructure the ISS, using its subsidised resources. launch industry; and their presence on that supports those kinds of products.” Additionally, transportation costs have commercial platforms will strengthen the It is also important to note that one key been identified as the limiting factor in LEO economy that NASA seeks, as one of successful business model has already been fostering the long-term growth of new and many customer(s) of the commercial demonstrated in LEO, with Earth imagery emerging markets for commercial activi- platform(s). spawning an entire industry. This may have begun with government funding, but it’s role role and activities will be within this new “We’ll share the market reaction so that grown to become an industry that is fully self commercial space in the future, NASA has companies can develop their own business supporting – an international marketplace recently published a strategy for developing plans for various commercial destinations. that can number governments among its the LEO economy. And it’s a strategy that’s And as the market responds, we’ll adjust customers. relevant not only to NASA, but to private those prices, and that will further inform the businesses, public bodies and other space market to reduce the uncertainty that Building a community agencies around the world. “We want to have industry has in putting together their An important conclusion from the seminar is commercial destinations in LEO where NASA business cases for these commercial that successful commercialisation of LEO will can purchase services as one of many destinations. depend on a community, because a single customers,” said Mr Comstock. “We want to work with industry to government and a few private companies stimulate demand,” he continued. “Because does not make a sustainable infrastructure. Building the business case these are new markets, there is a lot of So how do we build this community? One of the factors that will hold back the uncertainty, so we want to make the ISS “It requires collaboration,” said Ms commercialisation of LEO is the difficulty in available to test these new markets and Timmons. “It needs ‘old space’ and ‘new building the business case, particularly given reduce uncertainty to provide the business space’ working in partnership. It needs the the uncertainties of costs, revenues, markets case that industry needs to develop these commercial market to be energised to bring and customers. NASA has a role to play, with commercial destinations.” their money and their ideas to space.” Mr Comstock saying that it is not about Mr Manber worries that the message of Looking at what Lockheed Martin Space helping companies to build their business this need for commercial destinations has brings to the party, she added: “We are a tech plans, but rather to help identifying – and so been rather overshadowed in the rush to company with a lot of experience in robots reducing – the uncertainties. offer launch capability, with a glut of launch and autonomy, and we’re learning about AI Thus, to help private companies build a vehicle providers. “The development of the and machine learning. These are things that business case for commercialisation of LEO cubesat market has driven the market for are going to be the infrastructure that will and to help drive commercial opportunities, launch vehicles, but we also need enable space commercialisation in the NASA has established a commercial policy, destinations for launch providers to go to,” he future. expanding the types of commercial activities said. “I do have a fear that not all of the “We’re excited about supporting that – including in-space manufacturing – that launch providers can survive.” aspect of commercial space. And we’re can be accomplished on a space station. Further, while applauding NASA’s looking at how we build up the infrastructure “These activities have prices associated recognition that destinations are important, that buys down the risk and enables with them to give us insights on how the and noting that NASA sees a role for itself as commercial partners and investors to bring market responds to different prices,” Mr a customer for services, Mr Manber worries more applications and goods to commercial Comstock said. that the likes of the Agency, with this new space.

www.spaceindustrybulletin.com 9 Space economy

ROADMAPS TO THE COMMERCIALISATION OF LEO

to reduce development and operational costs by an order of magnitude.

Enable rapid path to new ventures: Leverage Blue Origin’s unique breadth of suborbital and orbital capabilities, empower- ing startups with a faster path to de-risk and deploy innovative and disruptive commercial LEO ventures. Market-driven definition: Determine likely YEAR 1 YEAR 2 YEAR 3 markets through analysis of previous l ATP l SSR l PDR l CDR MISSION 1 l studies, interviews, demand-driven market l ACR l PRR l SVR analysis. Define market-based technical HFCR requirements (for example volume, cost, l power, utilisation) that close a sustainable CONCEPT DEFINITION commercial business case. REQUIREMENTS DEFINITION PRELIMINARY DESIGN Investigate habitats: Investigate habitats DETAILED DESIGN based on a combination of commercially PRODUCTION PLANNING available hardware and Blue Origin ASSEMBLY AND TEST manufacturing capabilities, with innovations LV INTEGRATION

ACR Architectural concept review PRR Production readiness review SVR System verification review HFCR Human flight certification review

Vision and approach: l Modify Dream Chaser Cargo for powered l Modular, flexible, and reuse-oriented payload and crew configurations; up- architecture with services focus, adaptive mass, downmass, and human transport. to future market directions. l LEO platform for long duration activities, l Utilise LEO as an integration point for all capable of hosting partner modules or Cislunar activities in a hub and spoke ISS elements with additional life past network-reduce overall costs through decommission. economies of scale.

SNC PLATFORM, LOGISTICS AND SERVICE ROADMAP 2020 2023 2026 2029 ISS PPE CISLUNAR GATEWAY TUG LEO PLATFORM LIFE HABITAT CREW FREE FLYER DREAM CHASER CRS2 CRS3

ISS MODULE HOSTING ISS TRANSITION

LEO payload services LEO crew services

goods and services in space. Provide a sound Phase 2 – 2023-ISS EOL: Launch Axiom and reliable transition from ISS to a modules to ISS for early construction for commercial human rated platform for Axiom Station. astronauts, research, manufacturing and other markets. Expand operations, crew, research, Vision: To make living and working in space manufacturing and exploration capabilities. commonplace as a means to sustained Schedule Gradual transfer of work and hardware on human deep space exploration and for the Phase 1 – 2020-2023: Provide flight ISS to Axiom modules. improvement of life on Earth. opportunities for commercial astronauts Approach: Build, launch and operate a including mission planning, training, Phase 3 – ISS EOL onwards: Axiom Station commercial space station to follow the ISS. operations, logistics, utilisation and trans- operating independently following separa- Imperatives: Create a robust LEO market for portation. tion from ISS.

10 www.spaceindustrybulletin.com Space economy

ROADMAPS TO THE COMMERCIALISATION OF LEO

through stable government investments, streamlined process, and reliable launch cadence along with near term risk reduction demonstrations of new technologies that will Vision: Lockheed Martin envisions a vibrant catalyse activity in LEO (eg ISMA). LEO marketplace with both domestic and international government and commercial Schedule: customers. TASK/ACTIVITY CALENDAR YEAR Approach: Employ alternative business 2018 2019 2020 2021 2022 2023 2024 2025 models that enable a transition from a Risk reduction government owned and operated platform to LM ISMA ISMA ISMA Ground ISMA Flight On ramp commercial a lower cost commercial marketplace that planning Demo Demo applications maintains National Lab status for scientific MIS In-space ZBLAN flight ZBLAN extended pursuits, assured government access, and ZBLAN 3D print Demo flight demo international partner objectives. Down select between a range of solutions for ISS LRI in-space vacuum Vacuum deposition Variable mirror on-orbit production deposition flight demo evolution to better position for commercial- isation of a habitable platform in LEO. Privatisation and Transition period Commercial Encourage private sector towards LEO Evolution operations

outfitting, checkout of cislunar systems, and as the first elements of a co-orbiting, complementary commercial platform. l NGIS Commercial LEO Station: Aug- mentation Module-based commercial Vision and approach: Evolutionary roadmap station to provide complementary using Northrop Grumman Innovation services to ISS as a free-flying platform, Systems’ (NGIS) Cygnus, and Cygnus- and the basis for a future evolved derived vehicles, to develop a sustainable commercial platform. LEO market. l Long-Duration Cygnus: Capable of Schedule: operations and hosting of commercial payloads as an attached or free-flying module with flights of one year or more. l Augmentation Module: Cis-lunar vehicle in formulation for NextSTEP-2 adapted for LEO operation with habitation, node, and logistics capabilities. l Augmenting ISS: Optimise utilisation of the ISS by augmenting with AM capabilities with habitable space,

Vision and approach: orbital tests and function as basic science l Development of a set of commercial platforms. ecosystems comprising repurposed upper stages from multiple providers, to 2022 – 2025: Technical concept reaches ensure market resiliency. maturity; multiple uncrewed platforms in l The technique of reusing existing on-orbit orbit conducting commercial activities with performing tourism and other commercial hardware enables a lowering of prices, full ecosystem of services; crewed platforms astronaut functions. and an opening of access to a broader array of commercial customers. NANORACKS PROJECTED SCHEDULE – CENTAUR SPECIFIC l Nanoracks does not seek a “killer app” but rather facilitating a “killer ecosystem” l Multiple outposts, multiple orbits, crewed and uncrewed, attached and detached from ISS.

Schedule 2019 – 2022: Technical concept reaches test phase; first uncrewed platforms perform

www.spaceindustrybulletin.com 11 Space insurance Underwriters stay calm, while liability grows as a concern

he Seradata Space Conference in called the Vector-H, which can launch up to VECTOR-R AND VECTOR-H ROCKETS June examined space risks, business 200kg to a Sun-synchronous low Earth orbit. Tand insurance. To summarise, Sasso explained that it would take 100 underwriters were staying calm despite last Vector flights to produce as much pollution year’s loss, while in-orbit tracking and as a single Boeing 737 airliner flight. liability have emerged as new industry The Vector-R is due to make its first flight concerns. from Kodiak Island in Alaska in Q3 2019. Mr Following a slightly doom-laden intro- Sasso had one complaint. His rocket would duction about the prospects for space use several different launch sites (Kodiak insurance by chairman Pascal Lecointe of Island, Wallops Island, Cape Canaveral and Hiscox, the conference kicked off with a Vandenberg) and each tended to have a panel of new launch providers. Tim Fuller, different set of regulations, especially in managing director of Seradata, presented regard to the use of automated flight the key launch trends, including that China termination systems. is now the number one country for space Eric Salwan described his Firefly firm’s launches. He also noted that smaller Alpha rocket’s very efficient LOx/RP-1 satellites, especially cubesats, had become Kerosene powered engine tap-off cycle, ubiquitous. which he said gave it a performance This was underlined by Abe Bonnema, of advantage over engines using gas the satellite manufacturer and launch broker generators. Mr Salwan noted that his firm ISIS. He saw a move from the very smallest expected to break even on just four launches cubesats to slightly larger ones and per year and plans to offer lunar flights in regarded 20kg as the new optimum, with conjunction with NASA’s Commercial Lunar software defined satellite systems becoming Payload Services (CLPS) programme, for low Earth orbit (for example OneWeb, a key spacecraft technology. employing its upgraded Beta vehicle. Mr SpaceX and Amazon) would amount to a When it came to picking launches, Mr Salwan intrigued the audience with one of need to launch 17,800 satellites by 2026. So Bonnema noted the tension between his slides, which showed the reusable plenty to go around for many launch customers wanting the lowest launch prices horizontal take-off space plane that his firm providers. ABL hopes to fly its LOx/JET-A1 and needing to get their goods into orbit. eventually hopes to produce. Kerosene gas generator powered RS-1 “We want the highest credibility for the Like Vector, Jan Skolmli of UK-based rocket in Q3 2020. That rocket can get small lowest prices,” he said. Orbex was keen to note how green its 400kg satellites into a geosynchronous Four imminent entrants to the launch rockets would be. Yet, the LOx/Bio-LPG transfer orbit (GTO) and can even get 200kg market were mainly in the small to medium propellant combination would still allow the to the Moon. class, including Vector, Firefly, Orbex and rocket to put 155kg into a Sun-synchronous ABL. All were keen to show how that their low Earth orbit from the Sutherland Getting it to work in orbit programmes were not just “paper projects” spaceport in Scotland. Doubts remain about Of course, putting your satellites into orbit is – even if none had flown orbitally yet. insuring the flightpath, however: even with a one thing, but getting them to work there is Vector’s Joseph Sasso announced that dog leg, it still passes over several high-value another. Jan Schmidt, of underwriter Swiss the company’s initial Vector-R launch vehicle oil rigs. Re, reported that up to half of all CubeSat would only have 900 parts – fewer than an ABL, of the US, is a relatively unknown class satellites failed or suffered partial average car. Orbex plans to use this rocket launch firm but has borrowed from the failure either during the launch phase or as a test bed for key technologies, including expertise of others with several operatives early in orbit, making them a very using chilled propylene with liquid oxygen being ex-SpaceX employees. Dan Piemont unattractive proposition to insure. [While we (LOx) as propellants for a larger rocket noted that the planned largest constellations agree that the failure rate is high, this figure is significantly higher than the circa 17% we PRESIDENCIES CONCLUSIONS FROM THE NINTH EU ESA SPACE COUNCIL have on the Seradata database for launch The Romanian presidency of the Council of the need to coordinate the actions of all plus one year, with launch and in-orbit the European Union and the Spanish European space stakeholders. anomalies causing a capability loss of more presidency of the ESA Council at ministerial Member states agreed that regular Space than 10%]. level have issued conclusions following the Council meetings are an important tool for Many believe there will be a market for ninth EU-ESA Space Council (Space achieving these objectives. Ministers also large communications and Earth Council) in May 2019. agreed that future subjects for the Space observation satellite constellations in low The presidencies conclusions indicate a Council could include climate change, space Earth orbit. However, Mark Boggett of widespread recognition by ministers and economic diplomacy, ‘new space’, sustainable finance house Seraphim warned that member states of the need to coordinate and development goals and space traffic exponential growth in the space industry consolidate European space policy, including management. might yet be tempered by the “choke point” problem of getting so much data back to the

12 www.spaceindustrybulletin.com Space insurance

FIREFLY – EVOLUTION AND ADDRESSABLE MARKETS

ground via down links. Still, he predicted that having long-term exposure to launch-scale, telecommunications. He expected a definite space would become a key growth sector, assembly line manufactured spacecraft, on role for satellite constellations. Mr Ewart citing how one of the space firms he has which a generic fault might only become reiterated a point made earlier in the invested in, Altitude Angel, is trying to use obvious after many satellites have been conference that software-defined systems spacecraft to solve the problem of drone launched. including satellite software-defined incursions and the drone threat to aircraft, It was generally accepted that mass communications payloads would be key in via a space-based geo-fencing solution. produced, lower-cost spacecraft would be the 5G environment. Mr Boggett warned that some space less reliable than their more bespoke and technologies would have serious impli- longer tested high-cost counterparts. Cost is Insurance losses cations for human activity. Specifically, he king, said James Spencer, of TT Electronics, Stephane Rives, of Scor, set the challenging noted that quantum computers and implying that reliability would inevitably fall, scene for the insurance panel in the context communications would render past security with the further complication that as of insurance losses and falling rates, albeit systems redundant. satellite size reduced, electronics density with increasing numbers of insured would go up. Spencer said that while the launches. Cunningly, he elected to leave it to In-orbit liability insurance extensive testing of spacecraft might be a the panel to debate the solutions. Making small satellites is the business of thing of the past, there should still be a role On the key question of whether the GomSpace. Emilie Marlie Siemsen, its legal for custom qualification of parts. market will repeat last year’s loss-making counsel, amused many by revealing that the result, the panel and the audience (on Aarlborg-based firm’s name surprisingly Mobile communications balance) still managed to be positive. stands for “Grumpy Old Men” Space. Ms Keynote speaker Clay Mowry, of Blue Origin, However, Peter Elson, of the broker Siemsen said that while there was a expressed optimism about the GEO satellite Gallaghers, reminded the panel that other minimum in-orbit liability insurance cover launch market and predicted that GEO classes of insurance had rising rates and so requirement of €60 million, this amount was satellites would continue to have a role in space remained out of step. Would this not formally defined as per satellite or per mobile communications. He also reported reduce capital and capacity in the space occurrence. However, she said that by on Blue Origin’s testing of its human- insurance market? Only time would tell. working with insurance brokers the firm had carrying New Shepard suborbital rocket and As premium rates and geostationary come up with an insurance product that gave an update on planned tests of the New satellite launches (and hence premium would cover the per occurrence eventuality. Glenn orbital rocket and on the development revenues) have fallen, underwriters have had Iceye is planning a constellation of 18 of the Blue Moon lunar lander. to adjust to keep up premium income. They miniature radar satellites (six by next year), With respect to Blue Origin’s lunar have been forced to accept past bêtes which would allow a three-hour revisit time exploration plans, he refused to be drawn on noires, including launch plus multi-year anywhere on earth. Such an observation whether Blue Origin would build an even policies. Despite the payout for the mission system, whether used for security or even larger launch vehicle than New Glenn, failure of WorldView 4 in its middle years, flood tracking, would not be hindered by unofficially dubbed New Armstrong. Devin Fairbanks, underwriter at Starr night or cloud. Iceye’s Matti Ekdanni Nevertheless, he gave a hint by confirming Aviation, said that after making her own explained that operators would need launch that “New Glenn is the smallest orbital analysis she now supports these kind of and third-party liability insurance but would launch vehicle that we will ever build”. policies. Russell Sawyer, of the broker Willis, not need in-orbit insurance (constellations Greg Ewart, of Intelsat, pointed to the reiterated that long-term post launch would have spare satellites). In a way, this huge cost of rolling out a purely terrestrial policies were popular with space operators – suits underwriters who remain less keen on infrastructure for the new 5G standard in ie his clients.

www.spaceindustrybulletin.com 13 Space legislation

Chris Kundstadter, long-time space MISSION PHASES OF CUBESAT LOSSES – INSURABLE RISK? underwriter at Axa XL, noted that for ‘new space’ the market would have the rating analysis capability to cover new launch vehicles and new small satellite technologies. However, he warned that small satellites – especially cubesats – remained very much a Launch failure minor part of the insurance business in terms of premium revenue. Dead on arrival While the definition of what constitutes a ‘terrorist’ is notoriously vague and often Early mission failure unfair [some regimes around the world tend to define all of their opponents as ‘terrorists’] Partial mission achieved the notion that a teenage computer hacker is defined as a cyber terrorist still rankles Full mission achieved with some. Thus Laurent Esquirol, underwriter at Tokio Marine Kiln, tried to make the case for a third way in terms of cyber protection in space insurance policies. But he looked a little taken aback when it was pointed out that most cyber-attacks were maker overall, some underwriters did better objects as small as 2cm in low Earth orbit. deliberate acts and, thus, should still be part than others, whether by skill or luck. As to The subject of satellite servicing and how of terrorism and war insurance rather than which space broker or underwriter was most this might affect in-orbit liability was covered space insurance. admired in the market, the panel tried to be by a “Moot Court” in which a fictional Tim Wakeman, of Elesco, tried to be diplomatic. Nevertheless, the name of David company, Acme Satellite Servicing, found measured as he explained what ‘line slips’ Wade, of Atrium, kept coming up, itself the defendant having accidentally were (a method of bundling up risks in a embarrassing him in the process. destroyed its client’s satellite during its managed way by brokers), but could not spacecraft’s attempted initial grapple, with cover up his – and other underwriters’ – Tracking space objects debris from this also damaging a third dislike of them. Their view is that this Diana McKissock, of US Space Command satellite. approach was invented by brokers to sew up explained that she was not used to Joanne Wheeler, managing partner of cover at cheap rates in their clients’ interests. addressing an audience of commercial space Alden, who has advised several servicing Responding to an audience question on and insurance types instead of US Colonels companies and the UK Space Agency, found whether the vertical marketing concept and Generals. She described how her herself in the role of a barrister as she should be ditched in favour of the old “lead organisation tracks space objects, noting defended Acme over the resulting insurance underwriter and following market” set-up, that her main problem was assigning an claims. She was opposed by Chris Newman, the brokers seemed unanimous that the identity once an object is tracked. Professor of Space Law at Northumbria current system was best because Ms McKissock praised the growing University, who was acting for the notional competition benefited the clients in having cooperation between commercial entities claimants. proper premium rate competition. and her organisation, as they all try to sort The arguments involved consideration of After the panel ended, Russell Sawyer, of out which satellite is which. However, she the launching state, consideration of who Willis Towers Watson, said that while he was acknowledged that some organisations had the duty of care (the servicing company not an advocate of a “lead” setting the rate, could be less than forthcoming and or its client) and whether it had been he had wanted publicly to express his complained, somewhat ruefully, that successfully applied, and whether the liability sympathy for those underwriters who were universities were surprisingly difficult to was, in truth, really “joint and several”. While struggling to keep their expensive expertise engage with. not really considered, in a true servicing alive in such a competitive market. New commercial ventures are now adding contract there would probably have been an There may be a solution. During the to the resources of US Space Command with agreed point of transition of responsibility panel, Mr Elson suggested that underwriter their own detection systems. One of these is between the client and the servicing expertise in technical analysis for some risks LeoLabs, which is constructing a network of company – probably at some time-line event might be paid for via a fee arrangement. six radar systems around the world. It hopes such as he initial successful grapple itself. In Jeff Poliseno, of Aon, reminded the to complete these by the end of 2020. Matt this case, given that the grapple was not audience that while last year was a loss Shoupe, of LeoLabs, said it hoped to track successful, this might have been vague anyway. NATIONAL SPACE COUNCIL ESTABLISHED In a close-run thing, the Acme Satellite The UK National Space Council, to be global influence. The Council follows a similar Servicing company was found not guilty by established later in 2019, will provide structure to the UK National Space Council, the jury (the audience) strategic leadership on space across the which was re-established in June 2017 to Overall it was a successful conference government and will coordinate all aspects provide a coordinated process for developing and highly rated by attendees. Some of the UK’s space strategy, investment and and monitoring the implementation of US hankered for a bit more fire and argument, use of space through a new National Space space policy and strategy. especially in the insurance pow-pow. Others Framework. In the US, meanwhile, the FAA has would have liked a few more satellite The National Space Framework will extended the 14 June deadline for public operators to be present. consist of three priority areas: prosperity and comment on the proposed changes to knowledge, security and protection and commercial launch regulations to 30 July. l Author David Todd is head of space content at Seradata

14 www.spaceindustrybulletin.com

UKSPACE LOOKS BACK ON THE SECOND THREE MONTHS OF 2019

APRIL: The second quarter of 2019 began with news of the two health-related initiatives, with the UK Space Agency and NHS linking up. The first aims to tackle cancer using technology used to observe stars millions of miles away, while the second will provide real-time diagnosis of bowel cancer and freedom from air pollution. Meanwhile, the effects of a massive, global dust storm on the Red Planet were revealed by the ExoMars mission, while the first ‘Marsquake’ was also captured by InSight’s Seismic Experiment for Interior Structure. In an effort to showcase the range of satellite technology expertise in the UK, Science Minister Chris Skidmore announced the publication of a new register of specialist products and services, that could help tackle challenges of illegal deforestation, disaster response and food production. It was an award-winning month for Teledyne Defence & Space which received a prestigious Queen’s Award for Enterprise 2019 for International Trade.

MAY: May began with a scientific breakthrough that could have major benefits for future space missions. For the first time, a team of scientists from the National Nuclear Laboratory and University of Leicester generated electricity from americium, a rare chemical element, which could see space missions being powered for up to 400 years. In Scotland, STAR-Dundee’s development of the next generation of SpaceWire technology, SpaceFibre, which provides very high speed data transfer onboard spacecraft, was rewarded by the European Space Agency’s standardisation body with the publication of the SpaceFibre standard, ECSS-E-ST-50-11C. Airbus also secured two deals during the month; it was selected by Malaysia’s MEASAT to build MEASAT-3d, a new multi-mission telecommunications satellite, and the company won a three satellite deal from Inmarsat for revolutionary spacecraft OneSat.

JUNE: In June, Chris Skidmore announced that a new National Space Council would be established later this year, providing strategic leadership on space across government, coordinating all aspects of the UK’s space strategy, investment and use of space through a new National Space Framework. Additionally, the UK Space Agency said that up to £20m could be made available for Spaceport Cornwall and Virgin Orbit as part of the Industrial Strategy spaceflight programme, LaunchUK. Furthermore, the UK and USA are joining forces on a scientific programme to provide early warning of imminent, damaging space weather, thanks to a cutting-edge ‘plasma analyser’ being developed by UCL’s Mullard Space Science Laboratory. The month also saw the launch of new UKspace website, which aims to deliver even greater value to visitors through the breadth of information provided, as well as being a working site for UKspace members to access documents and paperwork through a new depository.

UKSPACE APPOINTS NEW VICE CHAIR UKspace has announced that Nick Shave has been appointed as the organisation’s new vice chair. Mr Shave, who is also VP for strategy and programmes at Inmarsat, took up his new UKspace role on 3 July 2019. UKspace chair, Graham Peters, said: “I would like to thank Ben Olivier, our retiring vice chair, for his support to the membership over the past year. His advice and input – especially for the Space Growth Partnership – have been invaluable as we face one of busiest times in our history. Ben’s ability to question and probe the core of issues facing the association was a great asset. We wish him all the very best in his next adventure and thank him for his dedication to the UK space sector.” Mr Shave said: “I’m very pleased and honoured to have been appointed to the UKspace vice chair role. I look forward to working closely with Graham as chair and with colleagues across all companies in the sector to continue the growth trajectory of our industry. Within the context of the recently announced National Space Council, and by working together in partnership, Government and industry have a great opportunity to capitalise on the rapidly growing global space sector to achieve our UK market leadership objectives by 2030.”

www.spaceindustrybulletin.com 15 Funding and financing Betting on the stars: what value can investors find in space?

ifty years ago, the innovations that led KEY FACTS AND FIGURES ON THE SPACE SECTOR to the first man on the moon were Fignited by strategic political positioning. l Public space budgets have reached their largest amounts since the 1960s, with the US Since then progress has been driven largely accounting for more than half of the total budget, followed by China, Japan and France. by profit: mobile communications, GPS l In view of their positive impacts in developing countries, space applications have navigation and weather monitoring have all become increasingly part of official development assistance (ODA) projects. Top space- become a significant part of our daily lives. related ODA contributors include France, the US, Japan, the Netherlands, Norway, the The UK’s space services, for example, provide UK and Canada. vital support industries worth about £300bn to the nation’s GDP. l A record number of space exploration missions are planned in the next five years: more The new space race, however, is fuelled by than 15 missions to the Moon by eight different space agencies (with even commercial both commercial gain and entrepreneurial missions), at least six missions to Mars and two to reach asteroids. vision and it’s not just billionaires such as Elon l 2018 saw the highest number of orbital launches conducted since 2000 (114 launches), Musk or Jeff Bezos who are getting in on the more than 60 of which took place in either the US or China. With 21 rockets launched in act. Even smaller start-ups such as Rocket 2018, SpaceX broke the record for annual launches conducted by one company Lab or iSpace are beginning to make a name for themselves. l The past five years have seen exponential growth in the number of launches of very small satellites, with almost 900 launched in the 2014-18 period. Democratisation of space By 2020, four global navigation satellite systems (GNSS) should be fully operational Venture capitalists invested a stratospheric l (US, Russia, Europe, China) and three regional ones are in the process of being rolled US$3.25bn into space technology firms in out (India, Japan, South Korea) 2018, a 29% rise year-on-year, according to Seraphim Capital data, the London-based Source: The space economy in figures – OECD Publishing space tech venture fund. This flood of capital and the commercial production of parts are encouraging the with the UK Ministry of Defence for the seeing defence players examining their democratisation of the space industry. development of cutting-edge, lightweight processes and working out how to partner Technology that was being pioneered in the antennas used to capture data from Internet with disruptive, agile tech firms.” sixties is now readily available to all at a of Things (IoT) sensors. The move was It’s this environment that has allowed New reduced cost. indicative of an ecosystem where big Zealand-based firm Rocket Lab, for example, “Now that the technology is collapsing in missions are often funded by large to launch rockets for just US$5m – a huge price, space is in the remit of start-up government organisations, but made in drop in price from the original US$1.5bn companies,” says Mike Lawton, CEO of Oxford partnership with smaller players. NASA space shuttle launch. Space Systems (OSS). “We’re seeing the “By the time defence companies develop Do smaller players offer value oppor- transition from very large incumbents ruling technology along traditional timelines, their tunities? Most space developments have the show to private companies having solutions often lag behind tech you can buy their routes in the US defence program and access.” OSS recently won a £1m contract on the high street,” says Mr Lawton. “So we’re NASA will often allocate huge contracts to private firms. The United Launch Alliance ESTIMATED VALUE OF ASTEROIDS IN THE BELT BETWEEN MARS AND JUPITER (ULA), a major provider of spacecraft launch services, even has a ‘block buy’ deal with the Davida 26.99 US government, giving it exclusive rights to Diotima 7.09 Values in quintillion US dollars dozens of launches over the next decade. In fact in 2018, 64% of investment went to Alauda 5.73 US companies, while European companies’ Palma 5.21 investment grew from 13% in 2017 to 18%2 in 2018. It’s often the US firms specialising in Lachesis 4.11 satellite development and launchers that Winchester 3.94 have received the lion’s share of capital.

Stereoskopia 3.70 Rocket launch Chiron 3.56 “SpaceX and ULA dominate the [spacecraft] launch sector,” says Graham Peters, chair of Siegena 3.50 UKSpace – the trade association for the UK Gyptis 3.38 space industry. “Those two have a lot of financial muscle (and personal wealth in the Source: Wired/Valerio Pellegrini case of Elon Musk) but there are areas of specialism they’re not in.

16 www.spaceindustrybulletin.com Funding and financing

2018 GLOBAL SPACE ECONOMY

Note: Satellite manufacturing revenue includes total estimated manufacturing revenue for satellites launched in 2018

Sources: Bryce internal estimates, Satellite Industry Association, European GNSS Agency, Organisation for Economic Cooperation and Development, government budget documents, and other published materials

“In the launch sector, there are UK meet standard BC investors’ needs in the The capabilities and returns don’t come companies that have developed new timeframe of a typical fund. We can also overnight, but they can be really significant if technology for single-stage-to-orbit engines generate the multiples of returns that they’re the businesses get it right and other engineering developments that looking for.” Another key area of growth will be aren’t being pursued in the US,” he providing more robust encryption technology comments. Growth areas to corporations by distributing data across Europe has also attracted interest in its Private space companies tend to have a multiple satellites, Mr Peters predicts. “There growing ‘build’ sub-sector. This includes the varied set of ambitions, offering a range of is demand to reduce the risks associated with development of hardware (sub-systems, potential value opportunities to investors. Mr the current generation of encryption platforms and sensors), software (such as Peters believes that developing robots to technology using quantum techniques, which mission control, cyber-security) and clean up debris from orbits in space will be a is an area the UK has scientific leadership,” he materials making platforms lighter, big area of industry growth over the next says. economical and more efficient. decade. Thousands of uncontrollable objects “It is not investing for the short-term, Investment in European build companies are flying around orbits, such as redundant when you’re investing in the space sector grew to 36% in 2018, versus just 4% in 2017 satellites and rubbish that has come off other (depending, of course, on the business). The and remains a key growth sector. In 2018, spacecraft. This is a threat to in-use vehicles. capabilities and returns don’t come some of the key space tech investments “As we see launches of multiple satellite overnight, but they can be really significant if included OSS (US$8m), which has less than constellations increase there is a growing risk the businesses get it right,” he concludes. 50 staff, and Reaction Engines (US$37m) of these small satellites becoming space which is also an SME. debris if they fail,” he says. “We need to keep l ‘Betting on the starts: what value can When asked what drew investors to OSS the orbits clean. For those orbits to be investors find in space?’ was a document build technology, Mr Lawton’s response was sustainable, companies need to service and issued by the investments division at pragmatic: “A typical fund lifecycle is 10 years. de-orbit satellites. This creates interesting Barclays Private Banking and Overseas We’ve shown, in our business plan, we can business opportunities.” Services

www.spaceindustrybulletin.com 17 ESA Invitations to tender

REF DESCRIPTION END DATE AO8927 NAVISP ELEMENT 2 - OPEN CALL FOR PROPOSALS 31/12/29 AO9834 GSTP ELEMENT 2: Call for Proposals - FOR MARKET ORIENTED ACTIVITIES 13/05/22 AO9610 COPERNICUS SPACE COMPONENTS - ACQUISITION AND TT&C SERVICES FOR COPERNICUS 31/12/21 AO9101 EO SCIENCE FOR SOCIETY PERMANENTLY OPEN CALL FOR PROPOSALS EOEP-5 BLOCK 4 31/12/21 AO9090 INVESTING IN INDUSTRIAL INNOVATION - INCUBED ANNOUNCEMENT OF PARTNERSHIP OPPORTUNITY (APO) 31/12/21 AO9671 ARTES CC - ADVANCED TECHNOLOGY - WORKPLANS EMITS / WEBSITE 31/12/21 AO9427 NAVIGATION INNOVATION SUPPORT PROGRAMME ELEMENT 3 ANNOUNCEMENT OF OPPORTUNITY (AO) 28/12/21 AO8859 OPEN CALL FOR OUTLINE PROPOSALS UNDER THE HUNGARIAN INDUSTRY INCENTIVE SCHEME - EXPRO PLUS 01/12/21 AO5651 FRAME CONTRACT FOR MEDIUM SIZE INFRASTRUCTURE WORKS ON-ESTEC SITE, NOORDWIJK 31/12/20 AO9569 ARTES INTEGRATED APPLICATIONS PROMOTION (IAP) - 5GRONINGEN 30/12/20 AO9305 OPEN CALL FOR PROPOSAL FOR IAP- ESA BUSINESS APPLICATIONS 30/12/20 AO8793 ARTES C&G - CALL FOR PROPOSALS 20/12/20 AO9128 ARTES SCYLIGHT ROLLING WORK PLAN 31/12/19 AO8872 ARTES INTEGRATED APPLICATIONS PROMOTION (IAP) KICKSTART ACTIVITIES 31/12/19 AO9729 POLISH INDUSTRY INCENTIVE SCHEME - ROADMAPS WORKPLAN 31/12/19 AO8893 ScyLight - Open Call for proposals 31/12/19 AO9038 CALL FOR PROPOSALS: EXPERT: POST-ISS HUMAN SPACEFLIGHT RESEARCH AND APPLICATIONS CAPABILITY IN LEO 31/12/19 AO9213 ANNOUNCEMENT OF NAVISP ELEMENT 1 2018 WORKPLAN WITH 12 ACTIVITIES 27/12/19 AO9072 ARTES IAP KICKSTART ACTIVITIES - PART 2 ( CREATED RFX IN ORDER TO HANDLE OVERLAPPING THEMATIC CALLS) 18/12/19 AO9889 IAP KICKSTART ARTIFICIAL INTELLIGENCE (AI) 29/11/19 AO9757 LIGHTWEIGHT DEPLOYABLE RADIATORS (ARTES AT 4D.062) 31/10/19 AO9692 PHOTONIC LANTERN RECEIVER (ARTES AT 5C.392, SCYLIGHT SL.016) (ON DELEGATION REQUEST) 14/10/19 AO9718 ON BOARD PROCESSORS FOR REGENERATIVE PAYLOADS (ARTES AT 5C.383) 10/10/19 AO9936 ATMOSPHERIC MONITORING TO ASSESS THE AVAILABILITY OF OPTICAL LINKS THROUGH THE ATMOSPHERE 04/10/19 AO9721 WIDEBAND RF OVER IP DEMONSTRATOR (ARTES AT 6B.055) 01/10/19 AO9682 MULTIPLE OPTICAL RECEIVE SYSTEM FOR A SINGLE OPTICAL TERMINAL (SCYLIGHT SL.017) 30/09/19 AO9674 FAST SWITCHING FOR OPTICAL INTER-SATELLITE DATA TRANSMISSION 30/09/19 AO9626 FEED SYSTEM ENABLING SINGLE REFLECTOR BEAM HOPPING ANTENNA FOR HIGH THROUGHPUT SATELLITES 27/09/19 AO9903 FEASIBILITY STUDY OF Q-BAND (40 GHZ) EO DATA DOWNLINK SYSTEM - EXPRO+ 23/09/19 AO9864 MULTIPLE SPACECRAFT PER APERTURE WITH CODE DIVISION MULTIPLE ACCESS MODULATION AND LINEARISER 20/09/19 AO9908 MULTI-ARM INSTALLATION ROBOT FOR READYING ORUS AND REFLECTORS (MIRROR) 20/09/19 AO9887 MODEL-BASED ENGINEERING HUB - EXPRO+ 18/09/19 AO9886 LARGER-SCALE EO EXPLOITATION ACTIVITIES IN SUPPORT OF SUSTAINABLE DEVELOPMENT INITIATIVES (EO4SD) 16/09/19 AO9920 HIGH PRESSURE WATER ELECTROLYSER DEVELOPMENT FOR EXPLORATION SURFACE MISSIONS 16/09/19 AO9762 3GPP NARROW-BAND INTERNET-OF-THINGS (NB-IOT) USER SENSOR INTEGRATION INTO SATELLITE NETWORKS 16/09/19 AO9713 SINGLE POLE MULTI-THROW KA-BAND MICROWAVE MONOLITHIC INTEGRATED CIRCUIT SWITCH 16/09/19 AO9899 NOVEL SURFACE FINISHES FOR PCBS AND ELECTRONIC ASSEMBLIES - EXPRO+ 13/09/19 AO9679 WORLDWATER SURFACE WATER DYNAMICS 13/09/19 AO9881 ARTIFICIAL INTELLIGENCE TECHNIQUES IN ON-BOARD AVIONICS AND SOFTWARE 13/09/19 AO9911 PL_RM14 DEVELOPMENT AND TEST OF THE EQM MODEL OF THE COMPACT X-BAND DIPLEXER FOR CUBE-SAT 13/09/19 AO9725 SATELLITE AIR INTERFACE FOR RAILWAY CONTROL COMMUNICATIONS (ARTES AT 3C.018) 13/09/19 AO9672 ASSESSMENT OF RELIABLE HIGH DATA RATE OPTICAL LINKS UNDER STRONG ATMOSPHERIC TURBULENCE CONDITIONS 13/09/19 AO9730 MULTI-SCALE HEAT PIPE NETWORK FOR ACTIVE ANTENNAS (ARTES AT 4D.063) 12/09/19 AO9753 ON-BOARD FEED CHAIN FOR COMBINED Q, V-BAND FEEDER AND KA-BAND USER LINKS (ARTES AT 5B.193) 10/09/19 AO9731 MULTI-DIMENSIONAL TWO-PHASE HEAT PIPE NETWORK ARTES AT 4D.061) 10/09/19 AO9900 HIGH FREQUENCY MILLIMETRE-WAVE VOLTAGE CONTROLLED OSCILLATTOR - EXPRO+ 09/09/19

18 www.spaceindustrybulletin.com ESA Invitations to tender

REF DESCRIPTION END DATE AO9905 LARGE AREA LOW RESOURCE INTEGRATED IMPACT DETECTOR - EXPRO+ 09/09/19 AO9896 PL_RM34 QUALIFICATION OF HOLD DOWN RELEASE MECHANISM FOR SATELLITE PLATFORMS - EXPRO+ 09/09/19 AO9963 PL_RM13 DEVELOPMENT OF A HIGHLY INTEGRATED LOW-COST X-BAND SSPA EQM 06/09/19 AO9779 RE-USABLE CONCEPTS FOR SPACE TRANSPORTATION FLIGHT VEHICLE ENGINEERING - EXPRO+ 06/09/19 AO9935 DIGITAL ENGINEERING HUB PATHFINDER 06/09/19 AO9884 SSA P3-SST-XX - EISCAT-3D RADAR PROCESSING PRELIMINARY DESIGN 06/09/19 AO9764 ELECTRIC PUMP FED PROPELLANT SUPPLY FOR GEO SATELLITE BI-PROPELLANT CHEMICAL PROPULSION SYSTEMS 06/09/19 AO9390 COPERNICUS SPACE COMPONENT FOR LAND SURFACE TEMPERATURE, AEROSOL OPTICAL DEPTH AND WATER VAPOUR 06/09/19 AO9314 HYBRID NAVIGATOR FOR TELECOMMUNICATION MISSIONS (ARTES AT 4C.051) 06/09/19 AO9719 INTER SATELLITE LINK V-BAND SOLID STATE POWER AMPLIFIER MODULE (ARTES AT 5C.381) 05/09/19 AO9659 H2020-ESA-035 ASSESSMENT OF SYSTEM IMPROVEMENTS ALIGNED TO NEW EGNOS MISSION NEEDS. 04/09/19 AO9934 TUMBLING MOTION ASSESSMENT FOR SPACE DEBRIS OBJECTS - GSTP E1 / GT17-152GR 02/09/19 AO9907 SYNERGIC USE OF BLOCKCHAIN AND DEEP LEARNING FOR SPACE DATA 02/09/19 AO9636 COLLABORATIVE AND DYNAMIC APPROACHES TO INCREASING SPECTRUM UTILISATION (ARTES FPE 1D.018) - EXPRO+ 30/08/19 AO9868 RELIABILITY OF LEAD FREE/PURE TIN COMPONENT TERMINATIONS - EXPRO+ 30/08/19 AO9859 EARTH OBSERVATION NEAR REAL TIME EXPLOITATION PLATFORM 30/08/19 AO9919 40K CRYOGENIC SYSTEM FOR LSS - EXPRO+ 30/08/19 AO9930 TECHNOLOGIES FOR FUTURE SIMULATION MODELS (FUSIMO) - T708-602GD (EXPRO+) 30/08/19 AO9856 ECSS-E-ST-50-15C PROTOCOL ON-BOARD SW IMPLEMENTATION - EXPRO+ 30/08/19 AO9894 MORPHING STRUCTURES PROCESSED BY 4D PRINTING FOR SPACE APPLICATIONS - EXPRO+ 30/08/19 AO9915 NAVISP-EL1-037: PNT TIMING & SYNCHRONISATION FOR AVIATION SYSTEMS AND NETWORKS - EXPRO+ 30/08/19 AO9717 MINIATURISED KU- AND KA-BAND FILTERS FOR ON-BOARD PROCESSOR-BASED PAYLOADS (ARTES AT 5C.388) 29/08/19 AO9845 ARTIFICIAL-INTELLIGENCE-ASSISTED PERFORMANCE AND ANOMALY DETECTION AND DIAGNOSTIC (ARTES AT 5C.390) 28/08/19 AO9910 SSA P3-NEO-XXII NEO OBSERVATION CONCEPTS FOR RADAR SYSTEMS 27/08/19 AO9782 EXTERNAL CALIBRATION METHOD FOR THE VENSAR INSTRUMENT - EXPRO PLUS 27/08/19 AO9901 SCOUT MISSION CONCEPTS AND SYSTEM CONSOLIDATION STUDIES 27/08/19 AO9875 RELIABLE MATERIAL CHARACTERISATION METHODS FOR THERMAL PROTECTION SYSTEM 20/08/19 AO9794 PIEZOELECTRIC MOTORS TRIBOLOGY FOR SPACE SCIENTIFIC APPLICATIONS - EXPRO+ 19/08/19 AO9819 DEPLOYABLE REFLECTOR ANTENNA FOR CUBESAT MISSIONS - EXPRO+ 16/08/19 AO9850 SAFE RENDEZVOUS AND PROXIMITY OPERATIONS - EXPRO+ 13/08/19 AO9871 PREDICTIVE ANALYSIS FOR AUTOMATED ON BOARD PROACTIVE PREVENTION OF REACTION WHEEL FAILURES - (EXPRO+) 12/08/19 AO9925 CERTIFICATION ACTIVITIES OF THE ESA MANAGEMENT SYSTEM 08/08/19 AO9635 EOVIDEO PRODUCT EXPLOITATION PLATFORM (EOVEP) - EXPRO+ 07/08/19 AO9804 PL_RM09 <40L MONOPROPELLANT DEMISEABLE TANK - PHASE 1 07/08/19 AO9883 DEEP SPACE GATEWAY SPACE RADIATION REFERENCE PAYLOAD CONCEPTUAL DESIGN STUDY - EXPRO+ 06/08/19 AO9788 DEEP SPACE GATEWAY COSMIC DUST ENVIRONMENT PAYLOAD CONCEPTUAL DESIGN - EXPRO+ 06/08/19 AO9824 E2E ASSESSMENT OF PROTOCOL STACK FOR EO USE CASES T109-601GD (EXPRO+) 02/08/19 AO9640 BLACK SEA AND DANUBE REGIONAL INITIATIVE APPLICATIONS - EXPRO+ 31/07/19 AO9281 KA-BAND SOLID STATE AMPLIFIERS FOR HIGH VOLUME APPLICATIONS (ARTES AT 5C.359) 31/07/19 AO9801 HYBRID VISIBLE IMAGE SENSOR 30/07/19 AO9840 GNC SYSTEM FRAMEWORK FOR RE-USABLE SPACE TRANSPORTATION SYSTEMS - EXPRO+ 30/07/19 AO9611 SENTINEL-1 TOOLBOX (S1TBX) MODULE MAINTENANCE AND DEVELOPMENT EXPRO+ 26/07/19

Each month Space Industry Bulletin updates these pages with the latest ESA invitations to tender, taken from the emits pages of the ESA website. You can visit the ESA website for the full list (http://emits.sso.esa.int/emits/owa/emits.main), or usual our simple ‘quick links’ facility on the Space Industry Bulletin website at www.spaceindustrybulletin.com/tenders

www.spaceindustrybulletin.com 19 UK Space Agency spending data UK Space Agency details plans for leadership in new space age

he UK Space Agency has published its 2018-19 BUDGET INCLUDING DELIVERY COSTS accounts for the year ending 31 March T2019, and has detailed its plan for EU Exit – £17.4m 2019-20, highlighting an ambition to support SFP – £7.2m the UK to be a leader in the new space age. International partnership As a world leader in key space domains, the programme – £27.8m Admin – £3.8m Agency says it is well placed to take advantage of exceptional opportunities to enhance the UK’s prosperity and knowledge, security and defence, and global influence. To achieve this it aims to maximise uptake of space technology and services for science, security, the economy and public services with an overall ambition of capturing 10% share of the world market by 2030. The global space sector is at an inflection point; there is a revolution in technology, both in space and through exploitation of the enormous potential to generate data about the Earth from space through artificial intelligence with new business models delivered by commercial ESA – £252.4m investment. The Agency acknowledges that National programmes – £65.4m it needs to be responsive to changes and highlight areas where the UK is already strong such as data driven applications and 2018-19 BUDGET INCLUDING DELIVERY COSTS space robotics and can be a world leader. Technology and science support (3%) Space situational awareness (1%) Economic benefits Telecom and integrated Investment in space science programmes Mandatory applications (23%) has continued to support world-class activities (35%) science in the UK, keeping the country at the forefront of discovery and providing eco- nomic benefits in stimulating technological innovation. 2018 also saw the SABRE project with Reaction Engines pass a critical milestone towards the end of 2018 with the successful completion of the preliminary design review by the ESA. The UK Space Agency says it has engaged across Government and through the industry led Space Growth Partnership to formulate a new strategic approach to space interests. It has continued to engage closely with partners in the European Space Agency to make investments that will underpin its strategy and it has expanded Navigation (2%) the network of regional ambassadors as part Earth observation (22%) of its drive to promote the opportunity for Human space flight (14%) the whole of the UK alongside national efforts including the space incubation network. such as tackling climate change. Further, the strengthened internationally, through The Agency has developed new space Agency has expanded its own international increased talks with the US government, standards activity to underpin its sector policy team to ensure capacity to respond to with China where the Agency took a lead role goals and it deepened its cross-government the challenges of the UK leaving the EU, and and the 13th UK/China space conference, engagement on activity to underpin the an increasing appetite for international with Japan in the area of space security, and industrial strategy and other policy aims engagement. Its presence has been with Australia.

20 www.spaceindustrybulletin.com UK Space Agency spending data

2018-19 SPENDING ON NATIONAL PROGRAMMES, WITH PRIOR YEAR COMPARATIVES

Agency finances SPENDING REVIEW – EXPENDITURE TREND The charts opposite (left) detail how the UK Space Agency spent its 2018-19 budget, and includes delivery costs so the figures are not directly comparable to the financial statements and total expenditure details shown on pages 22 and 23. During the period, the Agency subscriptions to ESA totalled £252.4m (2017- 18: £293.2m). The Agency’s commitments to ESA are agreed at Council of Ministers meetings, scheduled every two to four years. The most recent meeting was held in December 2016 and the next one will take place in November 2019. The medium-term commitment of ESA contributions was agreed at the Council of Ministers 2016 and covered subscriptions up to the end of 2019. Including delivery costs, a total of £65.4m (2017-18: £64.5m) was spent on the National Programme during the reporting period covering a multitude of different projects and initiatives. The Agency received income of £306k during 2018-19 in respect of its OSA licensing activities. 2018-19 spend on National Programmes, including prior year compara- tives are summarised above. The graph (right) details the Agency’s expenditure trend from the 2015 spending review settlement.

www.spaceindustrybulletin.com 21 UK Space Agency spending data

The Agency was created in April 2011, and Cash: Cash balances are closely man- engagement is flagged with an amber status to 31 March 2019 overall direct programme aged on a monthly basis to meet the internal light, while space sector growth is flagged funding has risen from approximately and departmental cash requirements. All red. This latter KPI carries a red rating as £250m to £400m per financial year. The cash reserves are held within the neither a Sector Deal was published, nor the additional funding has allowed the Agency to Government Banking Service. The Agency Civil Space Strategy updated. Following a expand its subscriptions to ESA, increase its does not hold any commercial bank BEIS announcement on 4 June 2019, the funding to the national programme and accounts. focus is now on a cross Government resource space programmes related EU Exit The cash balance as at 31 March 2019 National Space Framework and the activities. Due to the nature of space science, was £11m (2017-18: £12.9m). The Agency establishment of a National Space Council. expenditure on such programmes is aims to maintain an adequate cash balance This new approach to future civil space managed across multi-year profiles. at any point in time. strategy, to the governance of the sector and Future funding will be confirmed as part to the partnership with industry is described of the BEIS SR2019 settlement, due for Performance measures as a “whole of government approach” which announcement later this year. The Agency set challenging targets for its the Agency anticipates will be implemented Admin: Despite the increased size of the delivery in 2018-19, and detailed five KPIs in 2019-20. It aims to strengthen collab- Agency, admin outturn remained at £3.8m which were priorities for the financial year. oration, maximise resources and ensure (2017-18: £3.8m). Three of these it believes it is successfully clear strategic direction and priorities. EU Exit: Following the UK’s decision on delivering, including: growing the UK space In his statement on the Agency’s 23 June 2016 to exit the EU, the Agency has economy with a satellite launch programme; financial review, chief executive Graham spent £17.4m during the reporting period pushing forward with space regulation and Turnock said: “The Agency remains (2017-18: £3.1m). The increased spend from regulatory reform; and overseeing the committed to developing the UK space previous year was largely driven by the performance, funding and risks in delivering sector as a key element of the Government’s GNSS programme. the Agency’s national and international modern and ambitious Industrial Strategy. Net assets: Net assets as at 31 March space programmes. This is an exciting time for space, not least 2019 were £38.7m, a decrease of £53.2m Each of these were given green status because the UK is committed to develop from £91.9m as at 31 March 2018. This is lights in respect of their various success space flight capability. And we are keen to predominantly due to a decrease in the fair measures, but two aspects of the Agency’s inspire the next generation of scientists and value of forward exchange contracts. ambitions have fared less well. International innovators.”

STATEMENT OF NET EXPENDITURE, YEAR ENDED 31 MARCH 2019 2018-19 2017-18 2016-17 (£000) (£000) (£000) Income from operating activities (4,517) (1,871) ((1,484) Total operating income (4,517) (1,871) (1,484) Staff costs 10,385 7,007 4,755 International subscriptions, grants and other funding 346,088 381,421 359,957 Technical contracts and contract management 20,268 8,165 5,384 Provision expense 14 Other operating expenditure 3,081 3,054 2,369 Total expenditure 379,836 399,647 372,465 Net operating expenditure 375,319 397,776 370,981 Other comprehensive net expenditure Items reclassified to net operating costs during the year: Net gain/(loss) released on the disposal of cash flow hedges 29,076 36,509 26,082 Items which may be reclassified subsequently to net operating costs: Net gain/(loss) on revaluation of cash flow hedges 27,353 (29,912) (46,457) Total comprehensive net expenditure for the year ended 31 March 2019 431,478 404,373 350.516

INCOME FROM OPERATING ACTIVITIES

2018-19 (£000) 2017-18 (£000)

EU SST Programme 3,915 1,411 Outer Space Act 1986 licence fees 306 143 European GNSS Agency rental income 296 282 Other Income – 35 Total 4,517 1,871

22 www.spaceindustrybulletin.com UK Space Agency spending data

TOTAL EXPENDITURE 2018-19 2017-18 (£000) (£000) International subscriptions European Space Agency (ESA) 282,070 329,327 Recognised (gain)/loss on forward exchange contracts (29,076) (36,509) Net (gain)/loss on foreign exchange spot rate (non-hedge) (584) 226 Total ESA subscriptions 252,410 293,044 Other international subscriptions 32 – Other international grants & payments French Space Agreement (CNES) bilateral agreements 2,709 4,522 ESA mandatory tax adjustment and other payments 1,212 970 225 – National grants and other funding International Partnership Programme 26,624 29,720 Academic grants 24,625 22,667 SABRE 16,262 11,544 Satellite Launch Programme 6,276 – Spectrum charges 4,017 4,017 National Space Technology Programme 3,458 5,261 CEOI 2020 1,970 4,921 Other national programme grants and funding 6,268 4,755 Total subscriptions, grants and other funding 346,088 381,421 Technical contracts and contract management 20,268 8,165 Operational costs Payments for departmental shared services 778 670 Travel and subsistence 646 644 Rentals under operating leases 554 462 Accommodation 253 319 Training and other staff costs 174 194 Auditors remuneration (external) 40 40 Other 636 725 Total operational costs 3,081 3,054 Total expenditure 369,437 392,640

GRANTS COMMITMENTS

2018-19 (£000) 2017-18 (£000) Not later than one year Academic Grant Commitments 16,909 14,585 SABRE 13,383 18,111 International Partnership Programme 28,075 30,921 Spaceflight programme 16,391 – Later than one year and not later than five years Academic Grant Commitments 15,765 19,343 SABRE 4,717 9,834 International Partnership Programme 22,077 35,982 Spaceflight programme 9,279 – Total 126,596 128,776

www.spaceindustrybulletin.com 23 BRINGING TOGETHER THE LEADING DECISION MAKERS OF THE SECTOR

For ten years, the Summit on Earth Observation Business makers in attendance obtain the information and strategic has welcomed the most inspiring, forward thinking and partnerships required to inform themselves of opportunities, influential leaders of the satellite imagery and geospatial navigate evolutions and shape the future of the market. solutions sector. Meet and do business with 250 top-ranking actors that may Through panel sessions, informal discussions and private become vital to your business, with an active social meetings, the 250 senior-ranking public and private decision programme of lunches, receptions and coffee breaks

PLAY A PART IN SHAPING THE FUTURE OF THE SECTOR

THURSDAY FRIDAY SEPTEMBER 12, 2019 SEPTEMBER 13, 2019

08:00 Registration & welcome coffee 08:15 Opening coffee 09:00 Opening remarks 08:45 Optical constellations: The next business round 09:15 Introduction: State of play and prospects for the 09:50 Finspace - Startup pitch EO sector 10:00 The great unknown: The ground segment 09:30 Leading operators’ future model and assets 10:45 Morning coffee break 10:30 Morning coffee break 11:15 Regional EO Coordination 11:00 Data dynamics and access to information 11:45 Smart agriculture: Predictive analytics around the 11:40 Finspace - Startup pitch corner? 11:50 Value added services of today…and tomorrow 12:45 Official lunch 12:30 Official lunch Earth observation awards ceremony 14:30 In discussion with CONAE 14:30 New threats, new requirements: Harnessing new technologies in a changing world 14:45 Insurance & finance: The contribution from new information solutions 15:30 Afternoon coffee break 15:00 Finspace - Startup pitch 16:00 AI: The keystone of future analytics 15:15 SAR constellations: Inception of a new information 17:00 Closing remarks layer 15:45 Afternoon coffee break 16:15 In discussion with... 16:45 Adaptive business models for Earth observation satellite manufacturers

www.earth-observation-business.com