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| CEO Sverre Bisgaard peers inside a test chamber at Norspace in Horten. Photo: Arnfinn Christensen |
A German-British consortium that includes OHB System and Surrey Satellite Technology is set to build 14 satellites for Galileo, Europe’s new satellite navigation system. This contract is estimated at 566 million Euro, or 4,5 billion kroner.
Norspace is contracted to deliver frequency generators and search and rescue transponders worth about 170 million kroner to the consortium.
- These contracts are of course very important to Norspace, says Norspace CEO Sverre Bisgaard.
- They will ensure activity at Norspace for the next two to three years. We have already grown from 80 to 90 employees this year alone, and plan on recruiting more.
- During our 25 years in business we’ve never had such a long list of future work. It will enable us to plan for the long term when it comes to investments, organizational structure and further development of our product portfolio. The contracts will also give us an edge in the future rounds of satellite acquisitions for Galileo.
High risk, high gain
Norspace’s history is unique for a Norwegian firm. Ten years ago the company was named Alcatel Space Norway and was a division of French corporation Alcatel. In 2003 the satellite markets fell and Alcatel discontinued their space activities in Norway and in several other countries.
Sverre Bisgaard negotiated with Alcatel and took over the company when it closed. In 2003 he mortgaged his house, took up a loan and contacted the Norwegian Space Centre, applying for financial help to start the new space company Norspace.
With funding from the Norwegian Ministry for Trade and Industry, via the Space Centre, and contacts in the European Space Agency (ESA), Norspace was in business. And the rest is, as they say, history.
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| Norwegian Minister for Trade and Industry, Trond Giske, sees a solid return of the Norwegian state's investments in high tech companies. Photo: Henrik Kreilisheim |
- This demonstrates the positive effects of the Norwegian state’s start up help for businesses, and that it does indeed work. Our investments in high technology companies yield more jobs, says Minister for Trade and Industry, Trond Giske.
- Without the Norwegian state partnering with individuals in business enterprises, the around 90 jobs at Norspace in Horten would never have existed. This is a prime example that such efforts do pay off.
During its first year in business, Norspace saw such large earnings that the financial support they received in 2003 was paid back in tax revenue the following year.
The technology
Frequency generators transform navigational signals to radio frequencies so they can be read by ground receivers. The frequency generator uses the satellite’s atomic clock to gain a precise frequency and time reference.
Norspace started development of their frequency generators ten years ago for ESA. The Horten based company has delivered all frequency generators in the two Galileo test satellites that have been launched to date and in the four validation satellites that will be launched in 2011/2012.
Search and rescue transponders enable the signals from emergency beacons to be transferred to rescue services. Up until now this payload has been the source for political contention.
The production was first won by China outside of competition in the development phase of the satellites. Subsequently it was nearly given to Canada, after the Canadian government in understanding with ESA, financed development of the units.
But because Canada lacked a security agreement with the EU, they were not given the contract. An open competition for European contractors ensued and was won by Norspace.
Rolling in the near future
The first satellites in the contract will be completed in the last half of 2012. From then on one new satellite will roll out every six weeks. By 2014 there may be 18 Galileo satellites in orbit, including the four satellites already launched.
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| One of Galileo's test satellites. Illustration: ESA |
After the initial 14 Galileo satellites, more satellites are planned. Norspace has an edge in the competition, independently of which European consortium wins the future contracts. If the OHB consortium wins, Norspace is already in the lead.
If OHB’s competitor, EADS-Astrium, wins the new contracts, the chances are good that also they will prefer technology from the company in Eastern Norway. Norspace may gain Galileo contracts worth a total of 250 million kroner.
Chances for more
- If there is an open commercial competition for the next round of satellites, we should receive orders for an additional 10 million kroner per satellite, says Bisgaard.
The contracts which the OHB consortium won are one of six order packages for building Galileo. The last three of these packages will be signed in spring 2011.
- Only then will we know for certain the position of Norwegian industry in Galileo, says Steinar Thomsen, Head of the Department for Satellite Navigation at the Norwegian Space Centre. There are, in other words, possibilities for more Galileo contracts for Norwegian companies.
Norway was very visible in the developmental phase of the new navigation system and that is paying off now. That Norway was a full, active, and not the least, paying partner in the Galileo programme, is also significant.
- Without the active participation from the Norwegian state it would have been much harder to gain these contracts, says Thomsen.
Industry within the EU often takes top spots when contracts are awarded in the European space business, but by being an active partner, Norway was a competitor on par with any EU country.
About Galileo
The new European satellite navigation system is one of the largest industrial initiatives commenced by the EU. Galileo will enhance navigation by satellite, particularly in areas of the world that are poorly covered by today’s GPS system.
By using Galileo and GPS simultaneously, accuracy of navigation will increase from the current 5-20 metres down to 1-3 metres. Moreover, Galileo will ensure independent access to accurate time, positional and navigational information for European interests all over the world.
Galileo will impact life in Norway in several sectors, particularly in the north and for fisheries, marine transport, resource management and sovereignty and border control.
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| Galileo's fleet of satellites will make satellite navigation more accurate and safer. Illustration: ESA |
The development of Galileo will cost 3,4 billion Euro. Norway will participate with 600 million kroner over five years. However, the financial and industrital advantages gained from this investment will be worth the price many times over.
According to calculations by the Norwegian Space Centre, Norway will see returns 10 times higher than if we had been a passive participant in Galileo.
The Norwegian Space Centre has also been tasked with establishing a secretariat for Norway’s participation in the European navigation system. The Space Centre has gained two employees that will be working full time with turning the great opportunities in Galileo into reality.
- This case demonstrates that the Norwegian government’s investments in technology companies have been sound. We will see a high return from these investments, concludes the Norwegian Minister for Trade and Industry, Trond Giske.
