. 24/7 Space News .
Europe backs space sector investment with EUR 200 million of financing
by Staff Writers
Brussels, Belgium (SPX) Jan 22, 2020

The European space economy is already valued EUR 50 billion (as of 2019) and the research in aerospace technologies is one of the priority areas covered by the Industrial Leadership and Societal Challenges of Horizon 2020.

The European Commission is partnering with the European Investment Bank Group, announcing EUR 200 million of investments into the EU space sector, supporting ground-breaking innovation in the industry. During the European Space Policy Conference in Brussels, EIB Vice-President Ambroise Fayolle is signing an agreement with Andre-Hubert Roussel, CEO of ArianeGroup, confirming a EUR 100 million loan for the new Ariane 6 launcher programme.

The deal is backed by the European Fund for Strategic Investments, the financial pillar of the Investment Plan for Europe, and InnovFin Risk Sharing for Corporate Research backed by Horizon 2020, the EU Framework Programme for Research and Innovation. In addition, the Commission and the EIF are jointly announcing the first ever EU-backed InnovFin Space Equity Pilot and the first space focused tech fund supported under the pilot in Europe.

Ariane 6
Ariane 6 is the new European heavy launcher developed in the framework of a large European Space Agency (ESA) multi-annual programme for a new European family of space launchers to respond to the latest trends in the satellite market while significantly lowering production costs. The new generation heavy-launcher maintains the EU's independent access to space, aligned with the ambition to develop crucial knowledge for the European space industry.

Ariane 6 will continue to enable Europe to deliver its launch activities for missions to all orbits, from geostationary satellites to medium and low Earth orbit missions and address market dynamics for large satellites, satellite constellations and the smaller satellite segment. The EUR 100 million financing will partially support ArianeGroup's share of development costs through an innovative financing structure which will be contingent on Ariane 6's commercial success, once operational.

SMEs in the space sector
The InnovFin Space Equity Pilot is a EUR 100 million programme under InnovFin specifically dedicated to support the innovation and growth of European SMEs operating in the sector of space technologies. The programme will invest in venture capital funds across the EU which support companies commercialising new products and services in the space sector.

Primo Space, an Italian early-stage tech investor, is the first fund selected by the EIF under this pilot. With a target size of EUR 80 million, it will be amongst the first tech transfer funds only focused on space related technologies in Europe and the first one in Italy. It will invest at proof-of-concept, seed and other early stages projects or companies and will foster the commercialisation of breakthrough innovations in the space technologies in Italy and Europe.

The European space economy is already valued EUR 50 billion (as of 2019) and the research in aerospace technologies is one of the priority areas covered by the Industrial Leadership and Societal Challenges of Horizon 2020.

EU Commissioner for Internal Market, Thierry Breton, said: "The two announcements represent a game changer for Europe in the support of the European space industry. First, I strongly welcome the loan granted by the EIB for the Ariane 6 project, which is at the core of the objective to guarantee a European autonomous access to space. Second, with the InnovFin Space, we are sending a clear signal that space business in Europe is an attractive opportunity. This is a crucial initiative to support the development of European space start-ups so they can scale up."

"This EUR 100 million loan will partly finance ArianeGroup investments in Ariane 6 development, meaning more competitive, environmentally friendly industrial facilities in Germany and France, including French Guiana. Through this innovative financing, EIB, with the support of the European Union through the European Fund for Strategic Investment, and InnovFin Risk Sharing for Corporate Research, contributes to our industrial investments in our new competitive, versatile and modular Ariane 6 launcher.

It therefore fosters technological expertise allowing European launcher industry to remain always at the leading edge, becoming even more innovative and environmentally responsible. Ariane's competitiveness and reliability are essential factors for guaranteeing autonomous European access to space and ensuring that Ariane remain a key player on the commercial satellite market," said Andre Hubert Roussel, CEO of ArianeGroup.

"Initiatives like EFSI or InnovFin help us to develop relevant financing solutions for the European space industry. They allow us to provide debt financing for a large multiannual programme to develop a new family of European space launchers by ArianeGroup with improved technical flexibility and modularity to respond to the latest trends in the satellite market," said EIB Vice-President, Ambroise Fayolle, responsible for innovation. "We can also finance with equity much smaller projects and technologies, as we do under the InnovFin Equity Space Pilot mandate, to support a fund that invests in turn in space-related technologies."

"Space is an important driver of innovation in Europe. The investments in the space sector we signed show how public funds in the EU can be deployed to attract private investment and catalyse the development of the sector," said EIF Chief Executive, Alain Godard "The first ever Space equity pilot and our first fund, based in Italy, are a giant leap for the EIF in this sector. Attracting more private capital to this sector enables us together to drive forward Europe's space ambitions."

Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth, said: "Our commitment to supporting space research and innovation reflects our ambition to place Europe in the forefront of space technology development. EU-backed financial instruments allow our financial partners, the European Investment Bank and the European Investment Fund, to invest in riskier areas and to crowd in other investments from the public and private sectors. For our European space researchers, innovators and entrepreneurs, getting access to finance is key for their success."

The announcements follow recent new ventures for the EIB Group with key players in the space sector. Last year, the EIB and the European Global Navigation Satellite Systems Agency (GSA) signed an agreement to cooperate on supporting investment in the European space-based service economy. The common objective was to create high-skill jobs in the EU and improve the day-to-day lives of Europeans by supporting innovative companies and accelerating the development of new applications that use European global navigation satellite systems and earth observation data.

According to a recent EIB and European Commission study on the future of the European space sector, European space entrepreneurs feel there is a lack of private financing sources. They therefore tend to turn to private capital outside the EU, especially in the US.

A new EU space programme to start in 2021 foresees dedicated measures and additional funding to support an innovative and competitive EU space sector, including to boost entrepreneurship from early stage to scaling-up. The EU space programme regulation is currently under negotiation by the European Parliament and Council of the EU.

Related Links
European Investment Bank
The latest information about the Commercial Satellite Industry

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only
SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Maxar Technologies to sell MDA to Northern Private Capital for CAD$1 Billion
Westminster CO (SPX) Jan 13, 2020
Maxar Technologies, a trusted partner and innovator in Earth Intelligence and Space Infrastructure, reports it has entered into a definitive agreement to sell MDA to a consortium of financial sponsors led by Northern Private Capital (NPC), for CAD$1 billion (US$765 million), subject to customary adjustments. The company expects to use proceeds to reduce leverage and improve its capital structure to prioritize investments for growth in its core areas of Earth Intelligence and Space Infrastructure. ... read more

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Meir, Koch complete battery swaps to upgrade station power systems

Collins Aerospace to supply critical subsystems for NASA's Orion spacecraft

US tech sector sees only modest relief in China trade deal

In Seychelles, nature is prized above mass tourism

Russia claims edge as US lags in hypersonic weapons development

Aerospike rocket engines are more efficient than classic ones

EU announces funding for Ariane 6 and other space-tech

Exquadrum-Dynetics team test full-scale OpFires rocket

Nine finalists chosen in Mars 2020 rover naming contest

Could future homes on the Moon and Mars be made of fungi?

NASA's Mars 2020 Rover closer to getting its name

Impressive cloud formations over Mars' northern polar ice cap

China may have over 40 space launches in 2020

China launches powerful rocket in boost for 2020 Mars mission

China's Xichang set for 20 space launches in 2020

China sends six satellites into orbit with single rocket

Europe backs space sector investment with EUR 200 million of financing

Budget battle hampers EU in space

Lockheed Martin Ships Mobile Communications Satellite To Launch Site

Maxar Technologies to sell MDA to Northern Private Capital for CAD$1 Billion

NASA funds AnalySwift, Purdue tech to speed up composite deployable structure design

Study reveals unexpected rise in potent greenhouse gas

No need to dig too deep to find gold

NASA-funded space radiation studies could save astronauts' lives

Astronomers reveal interstellar thread of one of life's building blocks

Cold Neptune" and 2 temperate Super-Earths found orbiting nearby stars

Cosmic origins of phosphorus, a building block for life, traced by scientists

Telescope upgrade, move will aid in search for exoplanets

Looking back at a New Horizons New Year's to remember

NASA's Juno navigators enable Jupiter cyclone discovery

The PI's Perspective: What a Year, What a Decade!

Reports of Jupiter's Great Red Spot demise greatly exaggerated

The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.