Tag Archives: space economy

Lift-off for the new space economy

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Nearly Cloudless Scotland, As Seen From the ISS“Nearly Cloudless Scotland, As Seen From the ISS” by NASA’s Marshall Space Flight Center is licensed under CC BY-NC 2.0

It may come as a surprise to learn that Scotland is on its way to becoming a space industry superpower. The country is home to over 130 space businesses, with a combined annual income of £140m. Glasgow is building more satellites than any other city outside Houston.

Scotland’s booming space sector was the focus of a webinar that was part of last month’s Digital Leaders Week.  Leading the event was Tom Soderstrom, former Chief Technology and Innovation Officer at NASA/Jet Propulsion Lab, and current Global Lead for Chief Technologists at Amazon Web Services (AWS).

Tom explained that Scotland’s increasing involvement in the space sector is part of a wider growth in the ‘space-for-earth’ economy, which includes telecommunications and internet infrastructure, earth observation capabilities and national security satellites.

The factors driving the new space economy

Falling costs for building and launching spacecrafts have attracted greater investment in the commercial space industry. Space hardware is cheaper because it has become much smaller – these days, a miniature satellite (or ‘cubesat’) is typically about the size of a shoebox.

In recent years, the number and range of applications relying on satellite technology has rocketed. From smartphones and GPS devices to broadband access for developing nations, demand for space-based infrastructure has never been greater.

Data is another important driving force behind the new space economy. Scientists and governments need reliable data in order to understand how our planet is changing, and satellites can be used to take vital measurements of things like ice thickness coverage, deforestation, and ocean surface temperatures.

Cubesats are also used for monitoring shipping lanes, keeping a record of crop yields, and for protecting communities. Tom gave an example of an Australian company which uses satellite data for the early detection of wildfires, enabling emergency services to respond before lives and properties are put at risk.

Scotland’s place in space

Scotland is well placed to make the most of the booming space economy. According to Scottish Development International, operating costs for space companies are 40% lower in Scotland than elsewhere in the UK.

Another of the webinar participants, Professor Marion Scott from the department of mathematics at the University of Glasgow, highlighted the importance of Scotland’s skilled workforce. Nearly 20% of  all UK space roles are filled by Scotland’s 7,500 person strong talent pool. And Scottish universities have been quick to fill the gaps in different sectors by providing new courses, training and collaboration.

Meanwhile, Phil Cooper, AWS’ regional manager for Europe, the Middle East and Africa, pointed to the burgeoning reputation of companies in the Scottish space sector. AAC Clyde Space, for example, has become a market leader in providing spacecraft design, satellite operations and data delivery to governments, businesses and educational organisations.

But Scotland’s space boom is far from over. Phil forecasts that another 30 start-ups could be up and running by this time next year.

Another exciting prospect is the arrival of vertical launch capabilities. Five space hubs are currently under development around Scotland, and last year a site in Sutherland received planning permission from Highland Council to develop the UK’s first space port. By next year, it’s hoped that the vertical launch pad near Melness will send its first satellite into space.

Cosmic congestion: the problem of space junk

While there are lots of positives associated with the space economy, it’s not all good news. There are currently almost 7000 satellites orbiting the Earth, and the US National Oceanic Atmospheric Administration (NOAA) says that figure could double in 2021. As space becomes more congested, the problem of debris from old spacecraft and satellites has grown.

There’s a growing need for collaboration and internationally-agreed regulations to ensure that today’s satellites don’t become tomorrow’s space junk.

Tom Soderstrom highlighted research by Fujitsu, in collaboration with Astroscale, the University of Glasgow and AWS, to develop a proof of value to make space debris removal missions more commercially viable using its open innovation technology. The UK government has provided funds for this and other projects aiming to track space junk and monitor the risks of potentially dangerous collisions with satellites or even the International Space Station.

The space economy: tackling climate change

Environmental issues will be dominating the headlines later this year, when Glasgow plays host to the critical United Nations Climate Change Conference (COP26). One of the questions raised at last month’s webinar was how Scotland’s space sector can address the Earth’s climate challenges.

Marion Scott explained that there is now a network of universities and research centres working together to consider some of the climate challenges in advance of the COP26 meeting. At the same time, Marion stressed the importance of earth observation data in helping assess the scale of the problem of climate change.

Phil Cooper agreed that data was vital, and highlighted a competition launched by the Satellite Applications Catapult and the Commonwealth Secretariat in April which aims to stimulate discussion around the development of new concepts relating to ocean sustainability, incorporating satellite data and technologies.

The only way is up: the future of the space economy

In 2019, the World Economic Forum reported that while heavyweights like the United States, China and Russia have the greatest number of satellites in orbit, more and more nations – including the UK, Canada, Germany, Argentina and Luxembourg – have been developing their own space programmes. The Economist recently highlighted the growing number of African countries joining the commercial space race – last month the tiny Indian Ocean island of Mauritius became the latest country to launch its first satellite.

At the conclusion of the webinar, Phil Cooper expressed great optimism about the future of the space-to-earth sector, which can involve not only scientists, but people working in manufacturing, digital, marketing and many other industries. And, as Tom Soderstrom observed, the opportunities being generated by the new space economy are almost unlimited:

“The space bubble will grow faster than even I can imagine!”

Further reading: more articles on innovation from The Knowledge Exchange blog

Scotland’s space sector: a launchpad for economic growth

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Discovery space shuttle on launchpad

By Steven McGinty

In March, the UK Space Agency announced it had awarded £50,000 to the University of Strathclyde’s Scottish Centre for Satellite Applications (SoXSA) for its work with Glasgow City Council to attract entrepreneurs and start-ups to Glasgow’s innovation hub, Tontine.

Six companies will benefit from the support, which includes space industry specific business support, dedicated workshops and expertise, and administration and accommodation costs for two years.

The award is another sign of faith in Scotland’s burgeoning space industry, which has seen it become a global leader in the ‘New Space’ economy.

The development of New Space

The space industry, like many other technology fields, has been traditionally dominated by nation states, often in terms of national security.

But now, a new space industry is emerging, where private companies and entrepreneurs are developing innovative products and services in or for space. Reasons for this include reductions in funding to national space agencies, such as Donald Trump’s recent cuts to NASA, as well as the private sector’s success in innovation. For example, the company Space X has managed to launch rockets that had previously been into space – a practice which has been estimated to reduce the first stage of space flight from $60 million to $500,000.

Scotland’s role

Within a few miles of Glasgow’s city centre, a small number of research groups and private companies have gained international reputations for their work on space technologies.

For instance, Glasgow – a city more known for its heavy industries and shipbuilding – has found a niche in manufacturing low cost nanosatellites. This has led to Glasgow being crowned ‘Europe’s Satellite City’.

Glasgow’s first satellite company, Clydespace, has been tremendously successful over the past decade by developing CubeSats (a satellite the size of a wine bottle). These have been used in a range of missions, including UKube-1, the first mission to be commissioned by the UK Space Agency as a demonstrator for space technologies.

The city has also seen investment from Spire Global – a satellite powered data company headquartered in San Francisco. Spire’s satellites, which are used to gather data on weather, maritime, and aviation, were built by Clydespace. Peter Platzer, CEO of Spire, explains that:

“We have up there about 20 satellites, all exclusively built here in Glasgow.”

Mr Platzer highlights that Scotland’s confidence in Spire was one of the reasons that they opened their European office in Glasgow’s Skypark. The company received a £1.5m Scottish government grant through the agency Scottish Development International (SDI).

Scotland’s low cost base and universities with strong interests in engineering and space technologies were also highlighted as key selling points.

Young innovators have also sought to get involved in Scotland’s space sector. For example, Tom Walkinshaw, founded Alba Orbital from his bedroom when he was unable to secure a job in the space industry. His company provides PocketQube satellites (based on a design of one or more 5cm cubes) and now employs 10 skilled employees. Alba Orbital’s first satellite, Unicorn-1, is backed by the European Space Agency and is due for launch later in the year.

In academia, the University of Glasgow’s LISA Pathfinder team won the 2016 Sir Arthur Clarke Award for “Space Achievement in Academic Research or Study”. The award was given for the team’s work on developing the Optical Bench Interferometer (OBI) for the European Space Agency’s LISA Pathfinder spacecraft – a demonstrator aimed at measuring gravitational waves in space.

The future of Scotland’s space economy

A report by London Economics investigated the potential benefits of a spaceport in Scotland.

Prestwick Airport in South Ayrshire and Machrihanish, near Campbeltown, are currently competing to win a licence from the UK Government.

London Economics have set out three main advantages to having a local spaceport:

  • Spaceport operations – The activities associated with a spaceport will lead to the direct creation of jobs in commercial spaceflight or providing satellite launches, as well as indirect benefits for local suppliers.
  • Space tourism – Tourists visiting space stations or taken part in space travel are also likely to spend money in the surrounding areas and on other attractions.
  • Space-related education – Spending will increase on research and development due to the creation of a spaceport.

Tom Millar, managing director of DiscoverSpace UK, has also stated that sending small satellites into space would be a ‘viable revenue stream’. A local spaceport would reduce the costs for Scottish satellite companies as at the moment they currently have to ‘piggyback’ onto launches with larger satellites.

The report concludes by finding that a spaceport in Scotland would increase growth from 9% to 10% of the UK’s space economy in 2030.

The implications of Brexit

The results of the 2016 EU Referendum has caused uncertainty for the Scottish space sector. For example, many companies will be concerned for the rights of EU national employees, as well as their ability to recruit from this workforce in the future.

The Financial Times has also reported that changes in terms could keep UK companies out of lucrative European space contracts, such as the €10bn Galileo satellite navigation system. The European Commission are looking to change the terms of the Galileo project so that contracts can be cancelled if a company is not based in a member state. They also require companies to pay the costs of finding a replacement. If these terms are approved, it would effectively rule out UK-based companies bidding for EU projects, which would have a negative impact on the sector’s growth.

Final thoughts

Scotland’s space sector is estimated to be worth £134 million and accounts for 18% of all UK space industry jobs. Its success has been built on a combination of government support, talented entrepreneurs, and a supply of skilled engineers.

As the industry continues to grow, there will still be an important role for government, particularly in supporting innovation centres and granting licences for UK spaceports. The promotion of STEM (science, technology, engineering and maths) subjects will also be crucial, as we look to develop a new generation of space entrepreneurs to keep us ahead of this new industrial space race.

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