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Small satellite sector strangled by red tape

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Satellites
Satellites

IMechE report calls on UK Space Agency to change licence regimes and insurance regulations

Burdensome red tape risks strangling the UK small satellite sector before it has had a chance to get off the ground, a report by the Institution of Mechanical Engineers (IMechE) has found.

The publication, Seeking Resolution: Growing the UK Small Satellite Industry, focuses on Earth Observation (EO), a fast growing area of small satellite use which offers the ability to gather data about the planet’s physical, chemical and biological systems. EO satellites can monitor urban growth, land-use change and provide rapid casualty estimates after natural or human disasters.

But despite the UK having some world-class companies designing and building EO satellites, such as Surrey's SSTL, the sector is being hampered by outdated and complex launch and operation licence regimes and expensive third-party liability insurance. As a result, the IMechE report has called on the UK Space Agency to better support small satellite companies by setting up a specialist advisory team, simplifying the licensing regime and scrapping the third-party liability.

Dr Helen Meese, head of engineering in society at the IMechE, said: “Small Satellites are not only transforming sectors such as agriculture, conservation, energy production and disaster relief, but also have the potential to be a huge business opportunity for the UK.

“The UK has the potential to build a £40 billion space industry by 2030, supporting an extra 100,000 jobs, but work needs to be done to simplify regulation and boost the number of people entering the space industry or we risk losing business overseas.”

Specific recommendations in the report include revision of the 30-year-old Outer Space Act to provide more flexible and simplified launch and operations licences for small-satellite operators. Additionally, the UK Space Agency has been urged to support small companies and satellite operators through a dedicated advisory team for small satellite license applicants, and to align with other nations to end the third-party liability for small satellite operators.

The report also called on the UK Space Agency to develop a programme of public engagement and dialogue on satellite EO and data usage with emphasis on personal security and privacy, and to provide more access to satellite imagery and data through web-based portals, social media channels and improved engagement with the press.

Away from regulation, the IMechE report also recommended that the Satellite Applications Catapult, the government-backed technology company created to foster growth across the space sector, should work with universities, industry and Innovate UK to enlarge its existing SpIN programme to include year-long funded placements for undergraduates, graduates, post-doctorates and professional engineers, increasing its numbers to 1,000 a year over the next five years and to sustain this level until 2030.

The Satellite Applications Catapult should also continue its involvement in the Satellite Finance Network with an aim to increase the money available to small from £20 million to £70 million over the next five years.

Meese said that ultimately, the EO sector was on the brink of a technological step-change, as new innovations and applications emerged across multiple markets. “Yet, economic and business opportunities are being missed as a result of fragmented collaboration between key stakeholders, restrictive regulations and directives, and a lack of understanding of the benefits of EO in the wider community,” she added.

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