Brexit: Science & Space

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

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

Brexit currently dominates UK politics. Whilst it’s clear the UK is leaving the European Union (EU) in March 2019, the practical impact, and consequences, are still a confused fog hanging over everything. The UK Government Department for Exiting the European Union has been issuing position papers to set out how it sees the UK’s future arrangements with the EU.

Last week, the ‘Collaboration in science and innovation: a future partnership paper’ was issued. Given our company’s focus we were eager to see what was planned. Unfortunately, like a lot of the UK Government pronouncements on Brexit, it is high on rhetoric, but low on any helpful, or new, information or clarity.

It begins with a positive, but perhaps rather obvious, statement, stating that one of the UK’s core objectives is to ‘seek agreement to continue to collaborate with European partners on major science, research and technology initiatives.’

Future Partnership with EU Principles
Key aspects of the UK’s ambition for the future partnership include:

  • Science & Innovation collaboration is not only maintained, but strengthened.
  • With its strong research community, the UK wants an ambitious agreement for continued research co-operation.
  • Government wants the UK to be a hub for international talent in research, and to welcome the brightest and best people from around the world.

The principles are followed by four particular areas the UK wants to discuss with the EU. Interestingly, it specifically outlines how non-EU countries currently participate in each of these areas, which are Research & Innovation Framework Programmes, Space Programmes, Nuclear R&D and Defence R&D.

Research & Innovation Framework Programmes
Horizon 2020 is highlighted as the UK ranks top across the EU in terms of contracts and participants in it. The Government confirms its commitment to underwriting any projects submitted whilst the UK is still an EU member.

Support for this programme is good, however with an end date of 2020 it is going to be equally important to be a strong partner of whatever research funding programme that is going to follow.

Space Programmes
As we have described before the European Space Agency is not an EU institution, and so is not impacted by Brexit – a fact reinforced by the paper. Three key EU, rather than ESA, led space programmes are highlighted:

  • Galileo Navigation and Positioning System – Issues here surround both the use of the system and its ongoing development. UK firms have been key suppliers for this work including Surrey Satellite Technology Ltd (SSTL), Qinetiq, CGI, Airbus and Scisys.
  • Copernicus – The Copernicus Earth Observation data is freely available to anyone in the world. The key element here is about being at the table to influence the direction. Although, the paper does refer to existing precedents for third party participation.
  • Space Surveillance and Tracking – this is a new programme.

The paper states that given the unique nature of space programmes, the ‘EU and UK should discuss all options for future cooperation including new arrangements.’

What Is Not Said
There are a lot of positive and welcome words here, but also a huge amount unsaid, for example:

  • Interconnectivity: Science and innovation happens when researchers work together, so the UK’s approach to the movement of people is fundamental. Will the brightest and best be allowed to come and work here, and will they want to?
  • Education: Education is fundamental to this area, yet it does not merit a single mention in the paper. New researchers and early career scientists benefit hugely from programmes such as Erasmus, will our involvement in these continue?
  • Financial Contribution: How much is the UK willing to pay to be part of science and innovation programmes? The paper notes any financial contribution will have to be weighed against other spending priorities. Not exactly hugely encouraging.
  • Contractual Issues: Part of the issue with Galileo is that the contracts specifically exclude non-EU countries from involvement.. Whilst, it is possible to see that the UK could negotiate use of Galileo, continued involvement as a supplier may be more difficult.

Conclusion
The UK wants dialogue with the EU on far-reaching science and innovation agreement. This ambition is to be applauded, but we are a very long way away from that point. We hope both parties are able to work together to get there.

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!

Brexit and the Earth Observation Market

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

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

Last week the UK voted to leave the European Union (EU). For us it was sad day, evidenced by the fact that on voting day Sam was at the European Association of Remote Sensing Laboratories (EARSeL) Symposium in Bonn, Germany; and I was in Brussels having attended the European Association of Remote Sensing Companies (EARSC) Annual General Meeting the day before – I should say we had both already submitted our postal votes!

This obvious topic for this week is what Brexit means for the UK Space Market, and in turn what it means for us:

European Space Agency (ESA)
ESA is not the EU. It has a different membership and different rules. The UK can remain part of ESA even if it leaves the EU, as evidenced by Norway and Switzerland’s membership, and even Canada’s associate membership.

However, at the ESA Ministerial in December member countries will need to declare how much money they intended to contribute towards ESA programmes. ESA operates a geo-return principle which dictates that countries cannot receive more money back than they put in, and therefore the decision on how much funding to commit at the December meeting will be vital for the UK Space Industry.

At the moment there is a power vacuum in this country following the resignation of the Prime Minister, and it would appear that no major decisions will be made on the future direction of the country until the new Prime Minister is appointed in September. Given the new Prime Minister will want to set up his own Executive arrangements and that the most pressing matter will be Brexit, it is not clear who will be taking the significant decision on the UK’s ESA Contribution.

Lack of commitment at this point has the potential to damage the UK Space Industry far more than Brexit.

European Union
Despite the assertion above that the EU and ESA are different bodies, they are linked organisations. They have a joint European Space Strategy and the EU is the biggest financial contributor to ESA’s budget. In addition, the EU owns a number of programmes such as Copernicus and the Galileo positioning, navigation & timing network.

Outside the EU the UK will probably no longer have a voice within these programmes and it is unlikely the siting of significant infrastructure related to these programmes, such as ground segments, will include this country. Hence, even remaining an active participant within ESA, it is hard to argue against the fact that the UK’s role in the future of the European space industry will diminish.

Single Market
The space industry, like other industries, currently benefits from the single market which makes it easier for European businesses to trade with each other. It is clear that most of our businesses, and politicians, feel that this is a benefit they’d like to keep. The question is whether they will be willing to pay the EU’s price?

If they do, then it is likely that change will be limited. However, if they don’t and the UK leaves the Single Market then trade with Europe will become more difficult. It will of course continue, but there may be tariffs, limitations on exports/imports and the potential for businesses to open or close offices within the UK or Europe to best maintain their access to both the UK and European markets.

Scientific Collaboration
We collaborate with a lot of EU companies, scientists and students. Now again there is no suggestion that this would stop, but everything will become more complicated.

  • How easy and quickly will people be able to get visa to travel to Europe or vice versa? This could impact attendance at meetings or conferences.
  • Will European Conferences still come to the UK?
  • What will be the impact on placement programmes such as ERASMUS? ERASMUS has different membership to the EU, like ESA, but will the UK still be as attractive to those students?

Of real scientific concern is the emerging anecdotal evidence that UK researchers are being removed from EU based funding bids, such as Horizon 2020, as the consortia fear their bids will be less attractive if the UK is involved. If true, this is will impact scientific research, at least in the short term until our involved in such programmes is clarified.

UK Space Industry
The UK has an expanding, exciting and innovative space industry and the future is certainly not dependant on us being part of the EU. However, it would be naïve to suggest that we don’t face challenges ahead following Brexit. There are a number of key elements we need in place to ensure that our industry can continue to thrive:

  1. Commitment to our continued membership of ESA, supported by funding at the December ministerial.
  2. Commitment that the resources the UK Science and Space sectors received via EU funding, such as Horizon 2020, must be replaced with equivalent UK based funding calls.
  3. Not to let the Brexit negotiations overtake everything else. For example, it must not stop continuing progress on elements such as a UK Spaceport.

Pixalytics
We have a variety of strong European links including:

  • European contracts
  • Scientific collaboration with European Researchers/Institutes
  • European placement students spending time working with us
  • Contracts that are either directly, or indirectly, based on ESA funding
  • Membership of European Associations

We believe we have a strong business, with good value products and a positive brand. However, like all other UK businesses, we are going to need to assess our current business strategy, and decisions we need to make, through the prism of Brexit as further information is known.

Conclusion
Almost one week on from the UK vote, I think our position is best summed up by paraphrasing the famous statement of US Secretary of Defense, Donald Rumsfeld:

There are some things we do not know, but there are also things we don’t know we don’t know and those will be the difficult ones.

Or to put it more succinctly, we face months, and years, of uncertainty! What does everyone else think?

Controlling the Space Industry Narrative

The narrative of the satellite industry over the last week had all the components of a blockbuster novel or film: with new adventures beginning, dramatic challenges to overcome, redemption and an emotional end.

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

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

Like lots of good stories, we start with those characters setting off on new adventures. Firstly, China launched its most powerful imaging satellite, Gaofen-2. It carries a High Resolution Optical Imager capable of providing images with a spatial resolution of 80cm in panchromatic mode and 3.2m in multispectral mode, and has a swath width of 48km. It is the second in series of seven Earth observation (EO) satellites, following Gaofen-1 launched in April 2013, which will provide environmental monitoring, disaster management support, urban planning and geographical mapping. The Long March 4B rocket launched Gaofen-2, redeeming itself following a failure last December causing the loss of the CBERS-3 EO satellite. The second significant launch was from the International Space Station on the 19th August, when the first pair from the twenty-eight constellation satellites of Flock 1B were launched; with further pairs sent on the 20th, 21st and 23rd. Flock 1B is part of three earth imaging nanosat constellations from Plant Labs, providing images with a spatial resolution of between 3 – 5m.

ESA’s Galileo satellites, Doresa and Milena, provided the drama by failing to reach their planned altitude of 29.9km, reaching an orbit of 26.9km; in addition, their inclination angle is 49.8 degrees to the equator, rather than 55 degrees. They were the fifth and sixth satellites in Europe’s version of the American GPS satellite navigation system, launched on the Soyuz rocket. Getting the satellites to the correct position is likely to require more fuel than they carry. Like Long March 4B, Soyuz will get its chance of redemption in December with the launch of the next two Galileo satellites.

The Tropical Rainfall Measuring Mission (TRMM), a joint mission between NASA and Japan Aerospace, provides the emotional end to our story with the announcement last week that it had run out of fuel. Launched in 1997, TRMM had a three year life expectancy, but will now provide an incredible nineteen years worth of data. It will continue collection until early 2016, when its instruments will be turned off in preparation for re-entry.

It’s interesting to see how this news has been reported in the mainstream media, little mention of China’s progress, or the second Flock constellation or the amazing longevity of TRMM; instead, the focus was the failure of the Galileo satellites. There is rarely widespread coverage of the successful launches of satellites, but there is a push within the UK for the community to celebrate our successes more so the full range of space activities can be seen.

Earth observation is all about data and images, and whilst these may interest people, it’s only through the power of storytelling that we can describe the positives of the industry motivating and inspiring people. Remember to create stories for your industry, and your company, or someone else will dictate the narrative.