UK Space Agency awards £16M to satellite projects

The UK Space Agency has awarded £16 million to two projects helping to solidify Britain’s position as a leader in satellite communications. The funding will enable the development of technologies set to enhance the efficiency and capability of satellite constellations.

This investment is part of the UK Space Agency’s Connectivity in Low Earth Orbit (C-LEO) programme, which is committing up to £160 million over the next four years to bolster British expertise in the satellite communications sector.

Satellite constellations are transforming global connectivity by delivering high-speed internet to some of the world’s most remote and underserved regions. Such advancements are critical for bridging the digital divide, particularly in areas with limited or no traditional infrastructure. These constellations are also enhancing communications in markets such as maritime and aviation.

Telecoms Minister Sir Chris Bryant commented: “The UK has all the cutting-edge expertise and technology to spearhead the latest advancements in satellite communications and become a leader in this high-tech industry.

“These government-backed projects will not only provide significant advancements in mobile communication but help to bridge the digital divide, connecting communities in the most hard-to-reach areas.”

Two companies have secured funding from this round:  

• EnSilica, based in Oxfordshire, will receive £10 million to develop avant-garde silicon chips and software for a user terminal. These innovations will support compatibility with regional constellations such as the UK’s OneWeb and other European initiatives.  
• Excelerate Technology, headquartered in Cardiff, is set to receive £6 million to create the Mobility and Autonomy Market User Terminal (MAMUT). This small, flexible user terminal will allow operators to seamlessly switch between satellite providers and orbits via a simple app, driving cost efficiencies while enhancing global adaptability.

The UK’s space industry boasts a storied history in satellite design and operations, making it well-placed to capitalise on the rapid expansion of the global satellite market. The latest investment aims to maintain and extend the country’s competitive edge.  

In 2023, the sector reached a significant milestone with the deployment of over 2,900 satellites into orbit—many forming integral parts of commercial mega-constellations. Looking ahead, a staggering 18,000 additional satellites are anticipated to be launched between 2021 and 2031. Mega-constellations, intended to provide critical infrastructure for global connectivity, are expected to constitute 75% of this total.

For the UK, this represents a golden opportunity to secure lucrative contracts within the global supply chains of satellite constellations. By fostering innovation in this arena, Britain has the potential to play a pivotal role in shaping the future of satellite communications on a global scale.  

The funding also underscores the UK’s commitment to international collaboration. As a founding member of the European Space Agency (ESA), the UK hosts the European Centre for Space Applications and Telecommunications (ECSAT) at Harwell’s renowned Space Cluster.  

Funding under the C-LEO programme is distributed via dual approaches. Grants like those awarded to the satellite projects today are directly managed by the UK Space Agency, while additional contracts are awarded in conjunction with ESA. Further funding announcements through ESA are expected in the coming months, amplifying Britain’s investment in the sector.

The announcement of the grants coincides with the upcoming Ignite Space Conference, hosted by the UK Space Agency this week at Leicester’s National Space Centre. The event will spotlight opportunities for small and medium-sized enterprises (SMEs) to forge relationships with potential customers, collaborators, and investors in the UK’s space industry ecosystem, including its supply chain.  

By fostering collaboration between smaller players and major stakeholders, the UK hopes to harness the full potential of its domestic space sector while strengthening its standing on the international stage.

(Photo by Max McKinnon)

See also: Vodafone achieves first space video call using regular smartphones

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Tags: connectivity, europe, network, Networks, projects, satellites, space, telecoms, uk, uk space agency, uksa