Queen’s Speech Targets Space

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

Last week was the State Opening of Parliament in the UK following the General Election, this included the Queen’s Speech which set out the legislation the Government intends introduce in the coming Parliament. As expected, Brexit dominated the headlines and so you may have missed the announcement of the Space Industry Bill.

The space sector has been a growth target for the Government since 2010, when it set an ambitious target of delivering 10% of the global space economy. The last UK Space Agency report covered 2014/15 and indicated the industry was worth £13.7bn – equivalent to 6.5% of the global space economy.

Our space industry is inextricably linked to Europe through the European Space Agency (ESA). Whilst, as we have described before, Brexit won’t affect our role in ESA, other projects such as Copernicus and Galileo are EU led projects and the UK’s future involvement isn’t clear. This Bill is part of the Government’s response, and its aim is to make the UK the most attractive place in Europe for commercial space activities.

We’ve previously written about the current UK licencing and regulatory arrangements for anyone who wants to launch an object into space, as detailed in the Outer Space Act 1986. This Bill will change that framework and has the following key elements:

  • New powers to license a wide range of spaceflight activities, including vertically-launched rockets, spaceplanes, satellite operations, spaceports and other technologies.
  • Comprehensive and proportionate regulatory framework to manage risk.
  • Measures to regulate unauthorised access and interference with spacecraft, spaceports and associated infrastructure.
  • Measures to promote public safety by providing a regulatory framework to cover operational insurance, indemnity and liability.

The Bill itself is based on the draft Spaceflight Bill published in February, together with the Government responses to the twelve recommendations of the Science and Technology Committee Report on the Draft Spaceflight Bill which was issued on the 22nd June.

There are still a number of questions to be answered over the coming months.

  • Limited Liability: Currently, the standard requirement is to have insurance of at least €60 million. However, the draft Bill suggests that insurance requirements will be determined as part of the license application process. Clearly, the different types of spaceflight will have different risks and so having flexibility makes sense; however, until the industry understands this aspects it will be a concerning area of uncertainty.
  • Spaceports: Previously, the Government intended to select a location for a spaceport, but last year this changed to offering licences for spaceports. This means there could be multiple spaceports in the country, but it is questionable whether there is sufficient business to support multiple sites. Given the specialist knowledge and skills needed to launch spacecraft, it is likely that a preferred site will eventually emerge, with or without Government involvement.
  • Speed of Change: Back in 2012 the Government acknowledged that regulations for launching objects into space needed to be revised as they didn’t suit smaller satellites. Since that time satellites have got even smaller, constellation launches are increasing rapidly and costs are decreasing. The legislation and regulations will need to evolve as quickly as the technology, if the UK is to be the most attractive place to do business. Can we do this?

The UK Space Industry is in for a roller coaster over the coming years. Brexit will undoubtedly be challenging, and will throw up many threats; whereas the Space Industry Bill will offer opportunities. To be successful companies will need to tread a careful path.

High Noon for ESA Funding

Sentinel-2 Image of Plymouth from 2016. Data courtesy of Copernicus/ESA.

Sentinel-2 Image of Plymouth from 2016. Data courtesy of Copernicus/ESA.

The future direction of the space industry in Europe is set to be debated at the European Space Agency (ESA) Ministerial Council taking place at the start of December. It will look at the Space Strategy for Europe which we reviewed last week, and crucially will set ESA’s budget for the few next years.

The Council is the governing body of ESA and each of the 22 member states is represented, plus Canada. The Council is chaired by ESA’s Director General Jan Woerner, and he gave a press briefing in Paris earlier this week in advance of the meeting.

Sadly, I was unable to go to France for the meeting; but luckily Peter B de Selding from Space News was there and produced an excellent article which highlighted the key points including:

  • ESA is seeking an €11 billion settlement
  • Concern over the Norway’s proposed 75% contribution reduction
  • The ExoMars Programme, which hit the headlines earlier this year when the Schiaparelli lander crashed on its descend to the Mars surface, has a funding gap of €400 million.
  • €800 million is being sought to continue the collaboration with NASA on the International Space Station until 2024

The headline message on money is clearly the requested €11 billion settlement. In 2016 the ESA budget was €5.25 billion, of which almost 30% was income from the European Union (EU), Eumetsat and other programmes. The remaining 70% came from the contributions of each member state and Canada, and it is these future contributions that will be discussed at the Ministerial. This year the biggest contributor was Germany (€872.6 m), followed by France (€844.5 m) and Italy (€512 m) – between them these three accounted for almost 60% of the ESA member state budget.

For us, Pixalytics and the UK, there were a couple of interesting points. Firstly, ESA’s Earth Observation Envelope Programmes (EOEP-5) has had a 12.5% funding cut reducing their budget down to €1.4 bn for the period 2017 – 2025. It’s not currently clear what impact this reduction will, or will not, have on existing and planned activities.

Secondly, and for the second week running the blog has had to mention the B word. We’ve previously written about the fact that ESA and the EU are different organisations, and that Brexit does not directly impact our involvement with ESA – a point reinforced by the Director General at the briefing.

Indirectly though, Brexit impacts, if not dominates, the political and financial landscape of the country and as such will have affected the discussions surrounding our ESA contribution commitment. For example:

  • Dropping Value Of Sterling: The pound has dropped by over 13% since the EU Referendum, significantly increasing the cost to the UK of our ESA contribution which was €13.2 m in 2016.
  • Budget Pressures: In addition to the drop in the pound, the UK Space Agency has to compete with every other Government Department for funding. Given the current austerity financial approach, coupled with the additional costs of dealing with Brexit, money is tight.
  • Space Industry Profile: Every industry is currently fighting to get their agenda’s onto Government Minister’s desk to ensure they get then ‘best deal from Brexit’. Space is no different. We may not have the London centre of the financial sector or the emotional impact of the farmers and fisherman, but we are a strong and important part of the economy.

We need Ministers to understand our industry, and to ensure that they support us as much as possible. This means, as we said last week, that we need to give a positive commitment to our ongoing involvement with ESA and a strong financial contribution at the Ministerial in Lucerne on the 1st and 2nd of December.

We await the outcome with interest!

Space Strategy For Europe

Artist's rendition of a satellite - paulfleet/123RF Stock Photo

Artist’s rendition of a satellite – paulfleet/123RF Stock Photo

A Space Strategy for Europe was issued last week by the European Commission (EC), based around four strategic goals.

  • Maximising the Benefits of Space for Society and the European Union (EU) Economy
  • Fostering a Globally Competitive & Innovative European Space Sector
  • Reinforcing Europe’s Autonomy In Accessing & Using Space In a Secure & Safe Environment
  • Strengthening Europe’s Role as a Global Actor & Promoting International Co-operation

The strategy began with a heartening assessment of the European space economy, recognising that it supports almost a quarter of million jobs and is valued at around €50 bn.

The Earth observation (EO) sector is strongly represented within the document, particularly in the first two goals. Whilst some of the references to EO are fairly obvious statements, there are also some intriguing comments.

Maximising the Benefits of Space for Society and the EU Economy
This goal identifies a significant untapped potential for the uptake of space services and data, and outlines a number of actions that will be taken to unlock this; including:

  • Encouraging the use of space services and data, wherever they provide effective solutions – the last part provides an interesting test.
  • Ensuring EU legislation will be supportive of the uptake of these services.
  • Provision of improved access to, and exploitation of, Copernicus data – anyone who has tried to access data will know the need for continued improvement.Improving interconnectivity with other data infrastructures and other datasets.
  • Define clear limits between free Copernicus core information services and commercial applications – hopefully this will show Copernicus services as an opportunity rather than a threat; something that is currently unclear for, particularly SME, businesses.

Overall, the strategy states this will open up new business opportunities, including for SME’s and start-ups. We’re supportive of these actions, however we also have concerns.

The document has a single line stating it will reach out to new users and connect downstream activities to non-space sectors. This is the holy grail for every EO commercial organisation, and very few have come close to achieving it. The minimal statement potentially suggests the EC is fundamentally underestimating how difficult this will be.

An intriguing element is the intention “to introduce an ‘industry test’ to check downstream suppliers can provide reliable and affordable services.” We’d support any quality accreditation, but it will be interesting to see whether this is a certification scheme for everyone or a barrier to market for SMEs and start-ups.

This issue was strongly debated at a European Space Agency (ESA) meeting last week, particularly over the question as to whether the accrediting body assumes liability when a service doesn’t deliver. It is worth noting that the European Association of Remote Sensing Companies (EARSC) has an existing certification scheme for management practices, but only a few organisations have gone through the process to date.

Fostering a Globally Competitive & Innovative European Space Sector
This goal focuses on supporting research and development within the space economy, together with promoting entrepreneurship and business opportunities.

It specifically references the launch of a dedicated sector skills alliance for space/Earth observation – which sounds great. However, it appears to be a committee of stakeholders to discuss the necessary skills requirements for the industry, and so it is not clear what it will actually do.

The Commission also aims to support space entrepreneurs, start-ups and SME’s through a variety of programmes, dialogues and synergies! Lots of good words used with little clarity of real action.

Reinforcing Europe’s Autonomy In Accessing & Using Space In a Secure & Safe Environment
This goal has a focus on ensuring that Europe has the infrastructure and capacity to operate in space freely; although this does seem slightly at odds with the international co-operation trumpeted in the final goal.

However, the most interesting element for the EO community is the statement that the radio frequency spectrum must be protected from interference from other systems. This is something that is vital for space sector, but falls short of guaranteeing space technology having access to radio frequencies. In recent times, there has been a threat to the microwave frequencies from the requirements of mobile phone and wifi networks.

Strengthening Europe’s Role as a Global Actor & Promoting International Co-operation
The final strategic goal highlights the importance of international co-operation and the desire for the EU to have a much greater global lead. Given that the EU has the second largest public space budget in the world, this emphasis is welcomed.

It also notes that the EU will contribute to initiatives including the Global Earth Observation System of Systems (GEOSS) and the Committee on Earth Observation Satellites (CEOS).

Summary
Like all strategies there are lots of good intentions within these words, but limited practical details. It won’t be until the detailed plans are draw up to implement these actions that we will be able to determine whether this document is a valuable step forward for the space economy in Europe, or a thirteen page missed opportunity.

Our Footnote for the UK
The strategy makes clear the EU & ESA will be key to the delivery of this strategy, and so we can’t comment without mentioning the Brexit word. The current plan is that the UK will be out of the EU in early 2019, and therefore the UK Government’s input to the upcoming ESA ministerial is absolutely critical, alongside decisions on how we’ll interact with the Copernicus program.

We need to give a strong and positive commitment to our ongoing involvement with ESA, without this the UK’s space economy will face a significant setback. Everyone within the community must ensure that the Government, and Ministers, are fully aware of the importance of this in the coming weeks.