Commercial Space

Friday, October 21, 2011

Abu Dhabi Bullish on Virgin Galactic

Abu Dhabi based investment company Aabar Investments has boosted its stake in space tourism company Virgin Galactic by an additional $110 million USD to bring it's total equity in the company to 37.8% from 31.8%.

According to the October 19th, 2011 Wall Street Journal MarketWatch article "Abu Dhabi's Aabar boosts Virgin Galactic stake," Aabar made the additional $110 million investment in Virgin Galactic in July, 2011.

The original July 2009 investment included an Aabar commitment of $100 million USD to fund a "small satellite launch capability" plus money for construction of a spaceport in Abu Dhabi, the capital of the United Arab Emirates. Other publicly announced Virgin Galactic launch sites include:

The Mojave Air and Spaceport, where prime contractor Scaled Composites is constructing the spacecraft and conducting test flights
Spaceport America in New Mexico, which is listed as the primary commercial facility.
Spaceport Sweden in Europe.

According to the October 20th, 2011 post in the Space Business Blog titled "Investing in Virgin Galactic" there are three possible reasons for this additional investment:

Preparations for new growth ( such as nanosat launch vehicles or other new products).
Paying for the delays in reaching commercial operations for its suborbital product.
Building up a war chest for a rainy day (when money is available sometimes you just take it).

Cost overruns and schedule delays seem to be a permanent fixture of space programs (check out the May 4th, 2011 post on the Parabolic Arc website titled "A Look at Cost Overuns and Schedule Delays in Major Space Programs" and the follow up October 21st, 2011 article "Is Richard Branson Hearing Footsteps?" if you believe otherwise). It's therefore likely that this additional cash infusion is simply paying for the earlier delays.

The new investment information was released as part of a prospectus for a planned bond sale by Aabar's parent, the International Petroleum Investment Company (IPIC).

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Background Materials

The Alliance for Commercialization of Canadian Technologies (ACCT) – An advocacy group for technology transfer and commercialization.

Canada’s 50 Years in Space: The COSPAR Anniversary – Provides historical context and a thorough description of the parallel growth of the Canadian space science program and the international activities of the Paris based Committee on Space Research (COSPAR) from 1958 up until the 50th Anniversary of COSPAR in 2008.

The Canadian Advanced Research & Innovation Network (CANARIE) - A dedicated network of high-speed, fibre optic cable to link researchers around the world.

The Canadian Advanced Technology Alliance (CATA Alliance) – The largest hi-tech association in Canada. Focused on software and telecommunications.

The Canadian Aeronautics and Space Institute (CASI) – A nonprofit technical organization for aeronautics, space and remote sensing.

The Canadian Association of Business Incubators (CABI) – Dedicated to the development of new enterprises.

The Canadian Association of Defense and Security Industries (CADSI) – The “voice” the Canadian defense and security industries and organizers of the annual CANSEC trade shows.

The Canadian Astronomical Society – Professional astronomers dedicated to the advancement of knowledge.

The Canadian Foundation for the International Space University (CFISU) – The charitable organization promoting the International Space University (ISU) in Canada.

The Canadian Science Policy Centre - Organizers of the yearly Canadian Science Policy Conference.

The Canadian Science Writers Association - A national alliance of professional science communicators.

The Canadian Space Agency (CSA) – The federal government agency responsible for Canada’s civilian space program. The CSA is governed by the Canadian Space Agency Act and works with the Department of National Defense (DND) on military space focused activities and the Department of Foreign Affairs and International Trade (DFAIT) on activities related to international cooperation and technology transfer.

The Canadian Space Commerce Association (CSCA) - A registered Canadian not-for-profit industry organization existing to advance the economic, legal and political environment for space and aerospace focused companies.

Canadian Space Directory – The Canadian Space Agency’s listing of private and public organizations engaging is space related activities in Canada.

Canadian Space Flight History – A short history of Canadian efforts by Chris Gainor, the author of Arrows to the Moon and Canada in Space.

The Canadian Space Society (CSS) – A non-profit corporation promoting Canadian space activities. Organizes the annual Canadian Space Summit.

The Canadian Venture Capital Association (CVCA) – Provider of venture capital and private equity.

CANEUS – A non-profit organization fostering the development of Micro and Nano Technologies (MNT).

The Chapman Report – Canada is an international leader in the fields of communications and remote sensing because of John Chapman (1921-1979), senior author of a 1967 report entitled “Upper Atmosphere and Space Programs in Canada.” The report (later known as the “Chapman Report”) recommended using Canadian satellite and space technology for commercial activities such as communications and resource management instead of focusing on scientific research.

Friends of the CRC – An association of alumni of the Communications Research Centre (CRC), the government department responsible for most of Canada’s early satellite launches.

The Geomatics Industry Association of Canada (GIAC) – Canada’s premier source of information on geomatics.

Historical Investment Financing of Exploration for New Worlds, Current Analogies to Other Industries, and Ideas for the Future - A discussion paper on how explorers historically have been financed.

Industry Canada – The Canadian Space Agency is a part of Industry Canada and governed by Industry Canada policies on science and technology (S&T) including the Mobilizing Science and Technology to Canada’s Advantage report (May 2007), the Mobilizing Science and Technology to Canada’s Advantage Progress Report (June 2009) and various other federal government position papers relating to innovation, research and technology.

The Microsat Way in Canada -A paper written by Peter Stibrany and Kieran A. Carroll discussing how micro-satellite manufacturing methodologies change the economics of space applications and reduce the barriers to entry for new companies. This is the basis for the methodologies in use today at the University of Toronto Institute for Aerospace Studies (UTIAS) Space Flight Laboratory (SFL) .

The National Angel Capital Organization (NACO) – An organization of Canadian angel capital investors.

The National Research Council (NRC) – The primary Canadian government resource for S&T funding. The NRC works with the National Sciences and Engineering Research Council (NSERC), the Social Science and Humanities Research Council (SSHRC), the Canadian Institute of Health Research (CIHR) and the Networks of Centres of Excellence.

A listing of North American Amateur Rocket Clubs - From Apogee Rocket Components.

The Orbital Express Project of Bristol Aerospace and Microsat Launch Systems - An important case study for those wishing to study the technology and business development issues surrounding a small satellite launch vehicle.

The Science Media Centre of Canada - An independent, not-for-profit organization existing to raise the level of public discourse on science in Canada.

A Short History of Private Space Development - Useful historical context from Clark S. Lindsey.

The State of the Canadian Space Sector – This annual CSA assessment provides updates on the role the space sector plays in strengthening the Canadian economy.

Commercial Space

Friday, October 21, 2011

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