Brexit Biting for UK Space Industry

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

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

UK companies involved in European Commission space programmes face an uncertain future according to media reports over the last week. The Financial Times reported that the European Commission wanted two key clauses in the contracts for work on the next part of the €10 bn Galileo Satellite Navigation System. These would allow the Commission to:

  • Cancel the contracts, without penalty, of any supplier who is no longer based in an European Union (EU) member state; and then
  • Charge that supplier all costs associated with finding their replacements.

Clearly, this poses a huge risk to UK companies given the fact that the UK has indicated its intention to leave the EU in 2019 by triggering Article 50. We wrote about the potential impacts of Brexit last year, and whilst we did pick up concerns over Galileo we didn’t see this coming!

Should the UK Space Industry be concerned?
Yes!

Despite reports to the contrary, this does not mean we are leaving the European Space Agency (ESA). We are very much remaining part of ESA, something that was confirmed at the ministerial in December. This solely relates to programmes owned, and funded, by the European Union (EU). However, it is concerning for two key reasons:

  • Anyone who has tried to negotiate contract terms with large governmental organisations will be aware that it tends to be a binary take it or leave it scenario. Therefore, if these clauses are in the contract, then it is highly likely companies will have to sign up to them to get the work.
  • It may not just be Galileo, the Copernicus Programme could be next. Copernicus is also an EU programme, and therefore it has to be a possibility that they may apply the same clauses to future Copernicus tenders. Galileo isn’t something Pixalytics is involved with, but if this was extended to Copernicus we’d be potentially impacted and would need to make choices.

What Can UK Companies Do?
The options are limited:

  • Bid anyway! Accept the potential financial risk, or hope that it will get resolved within the various Brexit negotiations. Given the size of these contracts, it will be a brave CEO who goes down this route.
  • Not bidding for any Galileo contract is probably the financially prudent option, but equally it removes a significant revenue stream.
  • Move to another European Country. I think there will be a number of companies who will be looking at moving some, or all, of their operations to another EU member state.

Any Causes For Optimism?
Not really, but there are tiny strands of hope.

  • Security – A key issue with Galileo is security. Currently, all EU members have agreements on security and when the UK leaves the EU, it leaves that agreement. Of course, security is just one of hundreds of agreements the UK will be hoping to discuss with the EU through Brexit negations. If security agreements are reached with the UK, maybe the position will change.
  • UK Election – Whilst writing this blog, the UK Prime Minister has announced a General Election in June. Parliamentary changes may influence the type of Brexit we have, but again it is highly unlikely.

It was fairly obvious, despite the contrary political rhetoric, that Brexit would have huge consequences on the UK’s relationship with Europe.

The UK’s space industry looks as though it will be at the forefront of those consequences. Forget 2019, the bite of Brexit is being felt today!

Pixalytics Goes To Space … Well, Nearly!

Last week the Pixalytics name got lifted towards space! In a previous blog we described how we were supporting the Plymouth University Space Society launching a weather balloon.

After a number of attempts were thwarted by the wind and weather patterns of Plymouth, last Friday was the big day. A small band of the Space Society pioneers alongside myself and Howard from Salcombe Gin, spent half an hour battling to control a weather balloon in the wind as it was pumped full of gas and had a small Pixalytics branded payload attached including a Go-Pro Camera, balloon locator, various battery packs and a small bottle of Salcombe Gin. At the top of the blog is an image of the gin high above Plymouth.

Once we were ready, the balloon was carefully walked back a few paces, and then with our hearts in our mouths, it was launched! We watched it rise gloriously until it disappeared into the low cloud that was covering the city. For anyone who wants to see the launch, it was filmed and streamed on Facebook and the recording can be found here.

Once the launch euphoria had subsided, the Space Society team jumped into a car to follow the balloon towards the predicted landing site of Taunton. The payload had a device inside which when called replied with the balloon’s location to enable progress to be tracked. The balloon actually ended up around thirty miles to the east of the prediction, coming to rest back on Earth in Yeovil. Once they got close, the team had to ask an elderly resident for permission to look through her garden for the payload package. However, it was a success and the payload was retrieved!!

On examination of the footage, sadly the Go-Pro seemed to malfunction about 15 minutes into the flight and therefore we were not able to get full flight footage. However, this is the space industry and not everything goes to plan. Once you launch most things are out of your hands!

From the flight length and distance travelled the Space Society team estimate that the balloon went up above 32,000 m. Whilst that is only about one third of the way to the Karman line, which sits around 100,000m and is commonly viewed as the boundary between the Earth’s atmosphere and the outer space, it’s probably the highest point the Pixalytics name will ever get!

Readers will be aware that we do like the unusual marketing opportunity. We’ve previously had our name going at 100 miles per hour aboard a Caterham Formula One car, so who knows what might be next?

It was great to support local students with their adventure towards space, and hopefully it will inspire them to get a job in our industry and develop their own space career!

Plymouth Student’s Shot at Space!

From left to right: Fraser Searle (President), Sam Kennerley (Secretary) of Plymouth University Space Society, with the equipment to launch the balloon.

Plymouth University’s Space Society plans to send a small bottle of gin ‘into space’ attached to a weather balloon at the end of March.

The aim is to send the bottle 100,000 feet above the Earth, equivalent to 30 kilometres, and then bring it back safely. On its return, in true student fashion, they intend to use it to drink a few ‘space cocktails’!

The idea for launching the weather balloon began last summer when Fraser Searle and Nick Hardacre, who lead the Space Society at Plymouth University, were looking for ways to create interest in space in the local community. They originally hoped to send a bottle of local gin up, but soon found the challenges of working in a sub zero environment. It would have taken a balloon one and half times the size of the current one and double the volume of helium, so they changed to the shot glass.

They’ll also be attaching cameras and tracking equipment to the six metre diameter balloon to record and monitor the journey. The students have a roller coaster of emotions at the moment as Fraser explained, “We’re feeling excited, but I do get waves of nerves as to whether the glass and the cameras will return unharmed. We’re also wondering if the pictures and videos will be clear.”

Technically, the weather balloon won’t get into space. It should reach the upper half of the stratosphere, an area known as near space. As this area stretches from 20km to 100km above the Earth, ‘near’ is a relative term.

Pixalytics got involved with the project before Christmas, when we helped with sponsorship to enable the students to finish purchasing the necessary equipment. We’re also hoping to provide support in reviewing and interpreting the images the cameras collect on the journey. It’ll be interesting to compare what the weather balloon sees, with what various satellite imagery shows.

We’re strong supporters of events that encourage students and early career scientists to enhance their understanding of remote sensing, space and science. We sponsor student conferences and prizes that take place in the UK. So, it’s fantastic to get involved in something much closer to home.

Launching a weather balloon requires permission from the Civil Aviation Authority, and is also highly weather dependent. A planned launched at the end of January had to be abandoned as the balloon was likely to end up in Portsmouth or Calais harbour.

However, the team have once again got the relevant permissions to try again this coming week. The exact launch date will depend on the wind and weather patterns around Plymouth, which are always fairly turbulent. Fraser said, “We’ll be glued to the online predictors to find a launch slot.”

This is great local project for Plymouth, and we’re pleased to be able to support it. We have our fingers crossed for suitable weather, but only time will tell if they manage to conquer space!

Earth Observation Looking Good in 2017!

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

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

2017 is looking like an exciting one for Earth Observation (EO), judging by the number of significant satellites planned for launch this year.

We thought it would be interesting to give an overview of some of the key EO launches we’ve got to look forward to in the next twelve months.

The European Space Agency (ESA) has planned launches of:

  • Sentinel-2B in March, Sentinel-5p in June and Sentinel-3B in August – all of which we discussed last week.
  • ADM-Aeolus satellite is intended to be launched by the end of the year carrying an Atmospheric Laser Doppler Instrument. This is essentially a lidar instrument which will provide global measurements of wind profiles from ground up to the stratosphere with 0.5 to 2 km vertical resolution.

From the US, both NASA and NOAA have important satellite launches:

  • NASA’s Ionospheric Connection Explorer (ICON) Mission is planned for June, and will provide observations of Earth’s ionosphere and thermosphere; exploring the boundary between Earth and space.
  • NASA’s ICESat-2 in November that will measure ice sheet elevation, ice sheet thickness changes and the Earth’s vegetation biomass.
  • In June NOAA will be launching the first of its Joint Polar Satellite System (JPSS) missions, a series of next-generation polar-orbiting weather observatories.
  • Gravity Recovery And Climate Experiment – Follow-On (GRACE_FO) are a pair of twin satellites to extend measurements from the GRACE satellite, maintaining data continuity. These satellites use microwaves to measure the changes in the Earth’s gravity fields to help map changes in the oceans, ice sheets and land masses. It is planned for launch right at the end of 2017, and is a partnership between NASA and the German Research Centre for Geosciences.

Some of the other launches planned include:

  • Kanopus-V-IK is a small Russian remote sensing satellite with an infrared capability to be used for forest fire detection. It has a 5 m by 5 m spatial resolution over a 2000 km swath, and is planned to be launched next month.
  • Vegetation and Environment monitoring on a New MicroSatellite (VENµS), which is partnership between France and Israel has a planned launch of August. As its name suggests it will be monitoring ecosytems, global carbon cycles, land use and land change.
  • KhalifaSat is the third EO satellite of United Arab Emirates Institution for Advanced Science and Technology (EIAST). It is an optical satellite with a spatial resolution of 0.75 m for the visible and near infrared bands.

Finally, one of the most intriguing launches involves three satellites that form the next part of India’s CartoSat mission. These satellites will carry both high resolution multi- spectral imagers and a panchromatic camera, and the mission’s focus is cartography. It’s not these three satellites that make this launch intriguing, it is the one hundred other satellites that will accompany them!

The Indian Space Research Organisation’s Polar Satellite Launch Vehicle, PSLV-C37, will aim to launch a record 103 satellites in one go. Given that the current record for satellites launched in one go is 37, and that over the last few years we’ve only had around two hundred and twenty satellites launched in an entire year; this will be a hugely significant achievement.

So there you go. Not a fully comprehensive list, as I know there will be others, but hopefully it gives you a flavour of what to expect.

It certainly shows that the EO is not slowing down, and the amount of data available is continuing to grow. This of course gives everyone working in the industry more challenges in terms of storage and processing power – but they are good problems to have. Exciting year ahead!

Have you read the top Pixalytics blogs of 2016?

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

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

As this is the final blog of the year we’d like to take a look back over the past fifty-two weeks and see which blog’s captured people’s attention, and conversely which did not!

It turns out that seven of the ten most widely viewed blogs of the last year weren’t even written in 2016. Four were written in 2015, and three were written in 2014! The other obvious trend is the interest in the number of satellites in space, which can be seen by the titles of six of the ten most widely read blogs:

We’ve also found these blogs quoted by a variety of other web pages, and the occasional report. It’s always interesting to see where we’re quoted!

The other most read blogs of the year were:

Whilst only three of 2016’s blogs made our top ten, this is partly understandable as they have less time to attract the interest of readers and Google. However, looking at most read blogs of 2016 shows an interest in the growth of the Earth Observation market, Brexit, different types of data and Playboy!

We’ve now completed three years of weekly blogs, and the views on our website have grown steadily. This year has seen a significant increase in viewed pages, which is something we’re delighted to see.

We like our blog to be of interest to our colleagues in remote sensing and Earth observation, although we also touch on issues of interest to the wide space, and small business, communities.

At Pixalytics we believe strongly in education and training in both science and remote sensing, together with supporting early career scientists. As such we have a number of students and scientists working with us during the year, and we always like them to write a blog. Something they’re not always keen on at the start! This year we’ve had pieces on:

Writing a blog each week can be hard work, as Wednesday mornings always seem to come around very quickly. However, we think this work adds value to our business and makes a small contribution to explaining the industry in which we work.

Thanks for reading this year, and we hope we can catch your interest again next year.

We’d like to wish everyone a Happy New Year, and a very successful 2017!

Is the UK Space Industry in good health?

Blue Marble image of the Earth taken by the crew of Apollo 17 on Dec. 7 1972. Image Credit: NASA

Blue Marble image of the Earth taken by the crew of Apollo 17 on Dec. 7 1972.
Image Credit: NASA

Last week the UK Space Agency issued its latest report on the Size and Health of the UK Space Industry, covering 2013/14 and 2014/15. There are a number of eye-catching headlines, but this broad-brush approach means that there are a lot of unanswered questions within the granularity of the report.

UK Space Industry Income is Worth £13.7 bn in 2014/15
This headline figure breaks down into 88% (£12 bn) for downstream activities. Whilst the 12% (£1.7 bn) for upstream activities is much smaller, it is higher than in previous years. Upstream refers to the part of the industry that build and launch satellites and sensors; whilst downstream encompasses the products and services that use the data those objects collect. Overall, the UK represents 6.5% of global space economy.

Unsurprisingly, given the above breakdown, space applications are the biggest segment of the industry, followed by space operations, space manufacturing and ancillary services.

This follows through into capabilities which are dominated by Broadcasting, Communications and Navigation & Timing which account for 56%, 19.6% and 12.2% of the space industry income respectively. Earth observation is listed with an income of £256 m, equating to 1.87% of the overall industry; although Meteorology is shown separately.

38,522 Jobs in the UK Space Industry in 2014/15
The space industry accounts for 0.12% of the total UK workforce, with 29,947 people working in downstream activities, and 8,575 working in upstream. It’s interesting to note the difference in the employment percentages, 78% and 22% respectively, compared to the income split above.

A fascinating fact in the report is that the average qualification level of space industry employees is higher than any other sector in England and Wales. With 74% of employees possessing a degree, 15% holding a HNC and the remaining 11% having other qualifications.

Space Industry Throughout the UK
All regions of the country have space companies. Of course, London and the South East – partially driven by the Harwell Campus – have the highest concentrations. We were delighted to see that the South West had was the third most populous area with 126 space organisations; although the South West is only fourth for Headquarters and income generated with £176 m worth of space business within the area.

UK Space Industry Customers
The report notes that the largest customer type is individual consumers, accounting for 54% of the income. However, given the domination of Broadcasting in the figures and with the majority of their customers being individual consumers this does skew the result. Equally limited information can be gleaned for the other customer types.

Personally, we’d be interested in seeing the customer type split for each capability. This would be much more useful, as at the moment these are a set of high level figures offering little, or no, insight.

Growth Slowing In the Space Industry?
The report has lots of positive statements about growth. There are at least four different income growth rates of 6.5%, 7.3%, 8.1% and 8.5% on page 10, depending on which time period you compare. Similarly, page 12 on employment lists growth rates of 5.8%, 6.0% and 6.7%.

All of this sounds great, but looking at the growth rates within in the tables for the last 7 years, quite wild swings year on year can be seen. The chart below shows some good growth rates, but the last two years are the lowest growth rates.

UK Space Industry Income & Employment Growth 2009 - 2016. Source: Size & Health of the UK Space Industry 2016, UK Space Agency

UK Space Industry Income & Employment Growth 2009 – 2016.
Source: Size & Health of the UK Space Industry 2016, UK Space Agency

To be fair the report itself notes a few caveats on the figures, such as new methodologies and the changing value of the pound. So care should be taken with such figures, but does it show signs that growth could be slowing for the industry?

Towards 2030 Ambitions
In February 2010 the UK Government set ambitious targets for the industry of:

  • 8% of the world space economy by 2020, and 10% by 2030.
  • 100,000 jobs created by 2030, taking the industry to 119,100

By the end of 2014/15 progress had been made towards both of these targets, with the industry representing 6.5% of the world space economy and having 38,522 jobs. Employment needs to grow by 7.8% each year to achieve the target, which is concerning given the current growth levels outlined above. If jobs aren’t being created, it’s unlikely the global market share target will be hit.

Shaping The Future
Finally, the UK Space Agency is currently seeking ideas and evidence on how to implement the 2015 National Space Policy. Anyone can submit their thoughts, and we’d encourage everyone to participate in helping shape the future of the UK space industry.

The submission document is straightforward asking for proposed actions, alongside evidence as why they are necessary, for each of the four principles of the National Space Policy

  • Space is of strategic importance to the UK because of the value that space programmes deliver back to public services, national security, science and innovation and the economy.
  • Preserving and promoting the safety and security of the unique space operating environment, free from interference.
  • Supporting the growth of a robust and competitive commercial space sector, underpinned by excellent academic research.
  • Cooperating internationally to create the legal frameworks for the responsible use of space and collaborating with other nations to deliver maximum benefit from UK investment in space.

Conclusion
The UK Space Industry is growing, but we need to ensure that we take advantage of every opportunity and develop, promote and encourage the use of space based applications and technology.

With all the concerns about economic certainty in the coming years, let’s make sure our industry rockets ahead!

Perspectives from the 12th Appleton Space Conference

Sam presenting at the 2016 Appleton Space Conference. Image courtesy of Deimos UK.

Sam presenting at the 2016 Appleton Space Conference. Image courtesy of Deimos UK.

Last week I attended the 12th Appleton Space Conference, it was the first time I’d been to one of these conferences, and I was excited to be giving a talk. It was hosted by RAL Space at the Harwell Campus.

After the welcome, the day started with a talk from Ross James (Deputy CEO at the UK Space Agency). He’s new to the space community, and so has enjoyed learning to understand it more fully. It was interesting to hear him reinforce the conclusion that the space industry’s value-added multiplier is two, but also that the industry needs to be more regionally and user focused.

Talks then followed by members of European Centre for Space Applications and Telecommunications (ECSAT, the UK’s ESA centre) and the Harwell Campus. I was surprised hear the comparison that the Harwell Campus site is roughly equivalent to the size of the City of London. Whilst Harwell doesn’t yet have any of the iconic tall buildings of the City, it does mean it has plenty of space to grow – with plans to increase the campus to 5 500 jobs by 2020; although it was acknowledged that an upgrade of the underpinning infrastructure would be needed to support this.

Sam presenting at the 2016 Appleton Space Conference. Image courtesy of Sara Huntingdon, Space for Smarter Government Programme.

Sam presenting at the 2016 Appleton Space Conference. Image courtesy of Sara Huntingdon, Space for Smarter Government Programme.

After the break we swapped to the topics of growth and innovation. The Autumn Statement had a strong focus on creating an environment for backing winners, with Innovation UK targeted on turning scientific excellence into economic input and scaling up high potential businesses. Two quotes from Tim Just (Innovate UK) that particularly resonated with me:

  • Research is the transformation of money into knowledge; and
  • Innovation transforms it back again.

There was also a debate on whether the space industry is reaching the threshold for a tipping point as outlined in Malcolm Gladwell’s criteria – i.e., where a slow moving trend reaches critical mass and causes a larger change such as the use of space applications and technologies becoming the everyday norm. The last two talks before lunch were on the development of new instruments – including the recently launched Sentinel-3 mission.

The first afternoon session was on understanding scientific advances. We started off by discussing exoplanets (a planet which orbits a star outside the solar system), followed by detecting signals using ground based radars and then understanding gravitational waves. My own talk on harnessing the increasing volumes of Earth Observation (EO) data came at the end of this session. I focused on discussing how there has been a massive change in the amount of available EO data with the need to bring the abilities of computers and humans together to best use this wealth of information.

The slides from my presentation can be found here. It was interesting to see some of the messages people took away from my talk on Twitter such as:

  • The availability of free satellite data is revolutionising remote sensing
  • We have to make the most out of the large quantity of data made available by Earth Observation

After lots of people coming to talk to me during coffee it was great to see Paul Jerram from e2V showing what EO sensors look like, ranging from much larger version of the snapshot imagers found in smart phones to time delay imagers that collect the signal over a period of time so we can have very high resolution imagery. For example, the planet Mars is being imaged at 30 cm resolution. Prof Martin Wooster (Kings College London) focused on biomass burning emissions. Research has shown that the Malaysian fires in 2015, linked to El Nino, contributed to 15% of the global carbon dioxide increases that year but also to thousands of deaths due to the air pollution they caused.

Our day of talks concluded with a keynote lecture by Tim Peake, giving a personal insight into his mission into Space onboard the International Space Station (ISS). As an afternoon speaker I had a front row seat, and so I’m easily spotted on Tim’s room selfie! It was interesting to hear that Tim found adjusting to gravity back on Earth more difficult than weightlessness in space. How much he enjoyed his time on the ISS was obvious when he said he’d be happy to go again as the journey into space was particularly exhilarating.

Whilst aboard the ISS Tim used his limited amount of spare time on Sundays to take photographs of the Earth. Anyone who followed Tim on Twitter will have seen some of these, but he has also now brought out a book of these pictures titled ‘Hello, is this planet Earth? My View from the International Space Station’. An interesting footnote, although not from the conference, is that the UK has just purchased the capsule Tim used to get to, and from, space and it will go on display in the Science Museum next year.

Overall, it was a fantastic day jam packed with interesting, exciting and inspiring discussions about space!

UK Government View On ESA and Space Industry

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

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

This week we got a glimpse of the UK Government’s view on the space industry, with the publication of Satellites and Space: Government Response to the House of Commons Science & Technology Committee’s Third Report of Session 2016/17. The original report was published in June and contained a series of recommendations, to which the Government responded.

The timing is interesting for two reasons:

  • Firstly, it comes just before the European Space Agency (ESA) Ministerial Council taking place on Thursday and Friday this week in Lucerne. We highlighted the importance of this meeting in a recent blog.
  • Secondly, it has taken the Government five months to respond, something the Committee themselves were disappointed with.

The Government’s response has a number of insights into the future for the UK space industry. The full report can be seen here, but we wanted to pick out three things that caught our eye:

ESA
For us, and the ESA Ministerial, the most interesting comment was that the Government reaffirmed that the UK will remain a member of ESA after Brexit. It also noted that “The UK’s investment in the European Space Agency is an important part of our overall investment in space, from which we obtain excellent value.” Whilst the level of financial commitment to ESA won’t become clear until the Ministerial, the mood music seems positive.

Earth Observation
The role of the Space for Smarter Government Programme (SSGP) was highlighted, particularly in relation to helping the Department for Environment, Food and Rural Affairs use satellite data more. As part of SSGP we ran a successful Flood Mapping project during 2015/16. SSGP is running again this year, but given the importance placed on the programme on embedding space activities within Government it was disappointing not to see a further commitment beyond March 2017.

A business plan for a Government Earth Observation Service is currently being written, which is aimed at increasing the uptake of EO data within Government. We’ve not seen too much about this service yet, and will be very interested in the business plan.

Responding a question on harnessing the public interest in Tim Peake’s time in space, it was nice to see the work of the EO Detective highlighted. This is a fantastic project that raises awareness of the space industry in schools, and uses space/satellite imagery to help children explore topics such as climate change.

Small Satellites
“The Government intends to establish the UK as the European hub for low cost launch of small satellites.” It’s an interesting ambition; although it’s not completely clear what they mean by the term small satellites. As we described last week definitions are important.

On top of the three points above there were some words on funding for space related research; however these amounted to no more than an acknowledgement that various Government bodies will work together. There was also reference to the development of a new Space Growth Strategy, something we’ll talk more about in two weeks.

The Government’s response to this report was an interesting read, and whilst there are still a lot of unanswered questions it does hint at cautious optimism that they will support the space industry.

We were all on tenterhooks this week waiting the big announcements from the ESA Ministerial, and here are some of the headline outcomes:

  • Overall, ESA’s 22 member states plus Slovenia and Canada allocated €10.3 billion for space activities and programmes over the next five years. This includes an EO programme valued at €1.37 bn up until 2025.

Within this overall envelope, the UK has allocated €1.4 bn funding over five years, which equates to 13.5% of total. This includes:

  • €670.5 m for satellite technology including telecommunications, navigation and EO.
  • €376.4 m for science and space research
  • €82,4 m for the ExoMars programme.
  • €71 m for the International Space Station Programme
  • €22 m for innovate space weather missions

Our eye was, of course, drawn to the investment in EO and there is a little more detail, with the €670.5 m is:€60 m for the development of the commercial use of space data €228.8 m for environmental science applications and climate services through ESA’s EO programme, including:

  • Incubed – a new programme to help industry develop the Earth observation satellite technology for commercial markets
  • the Biomass mission to measure the carbon stored in the world’s forests
  • the Aeolus mission, measuring wind speed in three dimensions from space

Finally, it is worth noting Katherine Courtney, Chief Executive of the UK Space Agency, who commented, “This significant investment shows how the UK continues to build on the capability of the UK space sector and demonstrates our continuing strong commitment to our membership in the European Space Agency.”

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.