Development Agencies £36 Million Cash Boost Launches European Space Project
Collaborative venture by Greater South East Regional Development Agencies secures success for UK communications satellite
23 November 2007
A €500 million European space satellite programme that will improve communications for people across the globe was today awarded to the United Kingdom’s Inmarsat plc by the European Space Agency (ESA).
Essential funding of £36 million from the three Greater South East Regional Development Agencies (RDAs) meant that Inmarsat’s proposal for the most technically advanced civilian satellite in the world was given the green light by the member states of ESA.
Inmarsat’s proposal means that the Alphabus satellite will have its payload developed and built in the UK by EADS Astrium. Crucial to this win was financial support for the public/private finance bid from the East of England Development Agency (EEDA), London Development Agency (LDA) and South East England Development Agency (SEEDA). The UK funding will be matched at a ratio of around 1:10 with investment from the European Space Agency (made up of European and Canadian publicly funded Space organisations).
The satellite
The new satellite, Alphasat I-XL will be the most technically advanced satellite in the world for civilian applications. It will have a next generation digital processor and solar array drive mechanism developed by Astrium UK with support from the British National Space Centre (BNSC) which co-ordinates the UK’s civil space programme. The satellite will support a new generation of mobile technologies and enable communications across Europe and Africa – creating new business opportunities for UK companies.
The I-XL will enable:
• robust communications in crisis and disaster emergencies;
• telecommunications connection of houses, schools and businesses in remote locations, via Inmarsat BGAN portable data terminals;
• governments to connect with dispersed populations;
• essential voice and data communications for a wide range of industry sectors such as media, maritime, oil and gas.
Benefits for the UK
Securing the project will bring significant economic and social benefits to the UK and retain over 500 high technology jobs within the Greater South East region during the development and operation of the satellite. It will further maintain and develop a high level of skilled labour in the region and generate revenues for London-based Inmarsat, through subscriptions to satellite services. The projected flow of revenue into the region as a result of this win is £250 million.
The project will also ensure the UK Space Industry maintains its competitive edge and sustains and grows its current global market share by placing the country at the forefront of new mobile technology and communications.
The bid
Bidding was managed by the European Space Agency (ESA), which awarded the contract to Inmarsat over the competing French company Eutelsat. ESA regulations required a public contribution to the project. SEEDA, EEDA and LDA are each investing £12 million in the project over three years.
"Inmarsat thanks Government Ministers and the Regional Development Agencies for their support in winning the Alphasat opportunity for the United Kingdom,” said Andrew Sukawaty, Chairman and CEO of Inmarsat. “Without their timely action this significant European project, with its high tech jobs and leading technology, would have been lost to the country. We look forward to bringing Alphasat I-XL to completion and to increase the communications and safety services we can offer to Europe and beyond.”
SEEDA Chairman, Jim Brathwaite CBE said:
"The Alphasat project is a great coup for the Greater South East, building upon the region’s growth in the UK and making our country a bigger player within the global space industry. Most importantly, however, is that the successful bid puts the region at a distinct advantage against new rising economic powers.
This collaboration between the three RDAs of the Greater South East shows just how effective we can be in generating investment, business jobs and success for UK plc. I am confident that this will be the first of many such ventures.”
SEEDA Chief Executive, David Marlow, said:
"This announcement is particularly exciting news for the East of England, the UK's ideas region. It not only demonstrates how the regional development agencies of the Greater South East (GSE) can work together to make a real difference for UK plc, but also strengthens our position as a leading edge, world-class technology and innovation region.
“In the East of England about €60 million of programme funds will be channelled through Astrium’s headquarters at Stevenage, helping to secure more than 125 high skilled jobs and generate many more over the next few years. It will also give Astrium the competitive edge for future satellite programmes.”
LDA Chief Executive Manny Lewis said:
“This decision is good news for London. The London Development Agency has backed this project as it will help place London and the UK at the forefront of the communications technology space race. It will safeguard jobs and provide over £600m of inward investment for a London-based company.”
The BNSC, through €8.67 million of UK investment in the European Space Agency’s ARTES programme funded Astrium UK to carry out the development work on the next generation digital processor and Solar Array Drive Mechanism (SADM) and early stage conceptual studies. This enabled Inmarsat to bid and successfully win the Alphasat contract which has been announced today.
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