Showing posts with label CanadArm. Show all posts
Showing posts with label CanadArm. Show all posts

Thursday, March 07, 2019

Minister Bains Releases "Canada's New (Sorta) Space Strategy," But No Details or Funding Breakdowns

          By Chuck Black

It wasn't a bad press conference, if you ignored the fact that it was set up mostly to release documents intended to support Prime Minister Justin Trudeau's February 28th, 2019 press conference announcing Canadian support for the US led Lunar Gateway program and funding for the construction of a new $2Bln CDN "Canadarm3."


There was also the question of why the language used by the presenters seemed targeted more at the elementary school children attending the event than at the Canadian taxpayers expected to pay for the program or the scientists, engineers and businessmen expected to build and manage the new Canadarm.

Be that as it may, on March 6th, 2019 Innovation Minister Navdeep Bains formally announced the release of the written copies of "Canada's New Space Strategy," at the Telus "World of Science" Centre in Edmonton AB to an audience of mostly elementary school students.

As outlined in the March 6th, 2019 Canadian government press release, "Launching Canada's Space Strategy," the key priority of the strategy is "investing in science, innovation and research" which, according the press release, will unlock "new opportunities for economic growth," create "thousands of jobs for hard-working Canadians," and help Canadian's "understand the world we live in and our place in it."

In essence, the new program seems to be all about jobs, although the specifics of how much those jobs could cost to create and where those jobs might eventually end-up has been (so far at least) left unsaid:
Government will position Canada's space industry to take full advantage of the growing global space economy while ensuring that Canada keeps pace. It will also support innovative space firms through a dedicated investment so that they can scale up and thrive both in Canada and abroad.
Hopefully, the Federal government will provide a little more clarity over the next few weeks. After all, most Canadians aren't going to appreciate having their tax money spent on the creation of new jobs in (for example) Colorado.


The strategy will also place a "priority on harnessing space science and technology to solve important challenges on Earth." These include:
  1. Investing in satellite communications technologies for broadband, including connectivity in rural and remote regions.
  2. Exploring how the delivery of healthcare services in isolated communities can be improved through lessons learned in space. 
  3. Funding the development and demonstration of lunar science and technologies in fields that include AI, robotics and health.
  4. Leveraging the unique data collected from Canada's space-based assets to grow businesses and conduct cutting-edge science, including about the impact of climate change on Earth's atmosphere.
It's interesting that only one item on the above list (Item 3) is currently dealt with directly through the Canadian Space Agency (CSA).

Given that the new space strategy includes a great many areas without direct CSA overview, the new policy is congruent with the 2012 David Emerson led Aerospace Review, which was adapted originally by the previous Steven Harper Conservative government.

As outlined in the December 5th, 2012 post, "What the Space Volume of the Aerospace Review Actually Says," Emerson argued for a narrowing the CSA mandate to the point where it would no longer be a "policy-making body" or "directly involved in designing and manufacturing space assets purchased by the government."

Emerson recommended this specifically because of prime contractor cost overruns in several CSA programs, most notably Canada's Radarsat-2, which was built by what was then known as the Burnaby BC based MacDonald Dettwiler and Associates (MDA).

The new goals are also well within the current CSA mandate which, as outlined on the April 16th, 2018 CSA web page "Raison d'être, mandate and role: who we are and what we do," is focused around coordinating, assisting, promoting and encouraging, rather than controlling.


The press release noted a couple of interesting items related to the larger international space industry.
  • "Canada's space sector currently employs 10,000 highly skilled workers, generates $5.5 billion in Canada's economy annually, and averages $2 billion in export sales." 
The assumption is that this data comes from the CSA "State of the Canadian Space Sector Report 2016," which is the most recent CSA published report on the matter. 
According to the 2016 CSA report: 
  • In 2016, "the space sector contributed $2.3Bln CDN to Canada's GDP and supported a total of 21,654 jobs." 
  • In 2016, "total revenues in the Canadian space sector came to $5.5Bln CDN."  
  • Space generates "lucrative commercial opportunities for our companies. Morgan Stanley expects the global space market to triple in size to $1.1Tln US ($1.5Tln CDN) by 2040." 
The assumption is that this data comes from the November 7th, 2018 Morgan Stanley blog post, "Space: Investing in the Final Frontier," which noted "growing public sector interest" in the area and noted that "the global space industry could generate revenue of $1.1Trillion or more in 2040, up from $350Bln US currently." 
But the Morgan Stanley blog also noted that "most significant short- and medium-term opportunities may come from satellite broadband Internet access." Those opportunities are already well funded through the private sector.
  • The Government of Canada "has invested more than $2.5Bln CDN since 2015 in Canada's space sector, extending our participation in the International Space Station, providing funding to the Canadian Space Agency to test technologies in space, and helping Canadian companies scale up through the Strategic Innovation Fund." 
That may be true, but as outlined in the April 22nd, 2015 CBC News post, "Canada's International Space Station support extended to 2024" the Stephen Harper Conservatives were the ones who allocated $379Mln for Canada’s continuation in the International Space Station (ISS) until 2024, not the Trudeau Liberals. 
It's very likely that the Conservative party would also join up to contribute to the US Lunar Gateway, if it were in power. Canada possesses a strong bipartisan consensus on how it should be assisting Canada's space industry and that consensus includes contributing to US projects like the Lunar Gateway. 

Documents released or items referenced during the press conference and in the press release include the following:
  • The CSA webpage outlining the Lunar Gateway and Canada's expected contribution to the US program.
  • The CSA overview of Canada's Junior Astronauts program, which is part of CSA educational efforts.
  • The Government of Canada Space Advisory Board (SAB) website, because the new policy is informed by the views and perspectives gathered by the SAB. This is another indication that the new policy is following the new rules announced in the 2012 Aerospace Review.
  • The Government of Canada Strategic Innovation Fund, another indication that at least some of the announced funding will not go through the CSA.
One of the more noteworthy absences in the document was anything substantial relating to the $150Mln CDN over five years promised under the Lunar Exploration Accelerator Program (LEAP), which was supposed to fund the development and demonstration of lunar science and technologies in fields that include AI, robotics and health.

The program was simply noted, but nothing more was said.

But the new policy, even with all the included and anticipated (but still missing) documentation, doesn't have more than the the most vague of fiscal outlines of when the money will become available and how it will be spent. 


All of which makes perfect sense when you note that, as outlined in the March 6th, 2019 Forbes post, "Canada Makes A Risky Bet On A Giant Robot Arm," even the US Congress hasn't yet allocated enough money for a serious start on the Lunar Gateway.

They're also still cautious over the Constellation Program, NASA's last "big budget" attempt to go back to the Moon, which was cancelled in 2010.

Right now the Lunar Gateway is mostly a twinkle in a few farseeing eyes, despite what the fancy graphics and persuasive pundits might be suggesting.

The Liberal government is hoping that the Canadian public will become distracted by the romance of the big plan and forget to ask some of the harder questions, at least until after the next election. 

Just like children, which kinda accounts for the tone of the press conference.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog. 

Friday, February 22, 2019

The Next Three Important Dates For the Canadian Space Industry

          By Chuck Black

The 2019 Canadian Federal Budget (expected to be tabled in the Canadian House of Commons on March 19th, 2019), along with the fourth quarter 2018 report (expected on February 28th, 2019) and the year-end stockholder meeting (currently scheduled for May 8th, 2019) of Westminster CO based Maxar Technologies, are currently the hottest topics of gossip among those who focus on the Canadian space industry.


How did that happen?

It's because Brampton ON based MDA is both the maker of Canada's iconic Canadarm and a Maxar subsidiary. Since the formation of the Canadian Space Agency (CSA) in 1989, the space industry in Canada has been wrapped around Federal government funding for its favorite contractor.

This state of affairs is in the midst of changing. But change comes slowly to the industry and many are hoping that change will be delayed or superseded by announcements deriving from one or more of those events.

As outlined in the February 20th, 2019 CTV News post, "2019 federal budget to be tabled March 19: Morneau," Finance Minister Bill Morneau "will introduce the Liberal government's pre-election budget on March 19 in a document expected to touch the issues of prescription drug costs, skills training for workers and helping more millennials get into the housing market."

As part of the budget, the government may or may not announce a commitment to the Lunar Orbital Platform Gateway (LOP-G),  a US based initiative with a Canadian component manufactured by Maxar Technologies and covered previously in this blog, most recently in the the January 10th, 2019 post, "That Canadian Space Plan Where We Give Most of the Funding to a Failing, Foreign Owned Maxar is Dumb."

An announcement in favour of the LOP-G would be a boon to Maxar/MDA since the company would then be almost guaranteed to receive a multi-billion dollar contract to build a new "next-generation" Canadarm for the LOP-G.

But that might also not happen because, as noted most recently in the January 30th, 2019 post, "Why did Maxar Subsidiary SSL "Terminate" its Participation in the DARPA GEOsynchronous Satellite Servicing Program?," Maxar has been having a bad year and governments don't want to be perceived to be supporting failing, foreign owned companies.


As for the other two dates, they will likely be the two last chances for a failing Maxar to put its fiscal house in order.

According to the February 7th, 2019 Maxar press release, "Maxar Technologies Fourth Quarter 2018 Investor Call Scheduled for Thursday, February 28 2019," new Maxar President and CEO Daniel Jablonsky and recently appointed Executive VP and CFO Biggs Porter will host an earnings conference call to review Maxar's fourth quarter results, on February 28th, 2019.

Jablonsky and Porter (or their replacements, if nothing improves after after the fourth quarter results are announced) will also likely be around for the year-end stock holder meeting which, according to the January 29th, 2019 Maxar press release, "Maxar Technologies Announces Date of Annual Meeting of Stockholders," will be held on May 8th, 2019.

According to the February 13th, 2019 Seeking Alpha post, "Maxar Technologies: Betting On Space," Maxar needs to announce a cut of the quarterly stock dividend plus the successful sale of Palo Alto CA based Maxar subsidiary SSL for a reasonable amount of money, perhaps around $500Mln US ($660Mln CDN), in order to turn around the company.

Of course, even a big Maxar turnaround might not shake any LOP-G commitments from an embattled Federal government gearing up for a fall Federal election.

The Justin Trudeau Liberals might simply have too much on their plate to worry about any large but failing multi-national corporation other than the Montreal PQ based SNC Lavalin.

But that would be another story entirely.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog. 

Monday, January 14, 2019

Still No Plan for SSL or GEOSats, But Maxar's CEO Howard Lance Has Resigned. Here's What it Means for Canada's MDA

          By Chuck Black

CEO Howard Lance has resigned from his job at Westminster CO based Maxar Technologies effective immediately and been replaced by Daniel Jablonsky, one of his Maxar colleagues who, since October 2017, has also acted as the president of the Westminster CO based Maxar subsidiary DigitalGlobe.

New Maxar CEO Jablonsky. Photo c/o Space Intel Report.

Jablonsky will also now sit on the Maxar board of directors, where he will join other DigitalGlobe alumni, including retired US General Howell M. Estes III, the current chairman of the Maxar board (who has also been the chair of the DigitalGlobe board since 2011) and Nick S. Cyprus, the chairman of the Maxar audit committee, who was also previously a director of DigitalGlobe.

The circling of the Maxar wagons around the DigitalGlobe subsidiary and it's lucrative US government Earth imaging contracts is simply the final, last ditch effort to keep the wheels twirling on the Maxar bus.

The DigitalGlobe assets will be protected. But the other Maxar business units, including Palo Alta CA based SSL and Brampton ON based MDA are far less central to Maxar's future.

As outlined in the January 14th, 2019 Space News post, "Maxar replaces CEO Howard Lance with DigitalGlobe president," Maxar has been trying for some time to figure out what to do with SSL manufacturing line for large communications satellites. According to the post:
Maxar sold off some of SSL’s valuable Silicon Valley real estate in early December and said it intended to decide by year’s end whether it would sell or shutdown its geostationary satellite manufacturing portion of SSL.
But so far nothing has moved forward, which tends to suggest that the real value of SSL, given the complete collapse of the large satellite market, is almost entirely wrapped up in its property holdings.

If this turns out to be true, its certainly bad news for Maxar, which will almost certainly need to try and unload SSL for whatever it can get.


As for Canada's MDA subsidiary, Maxar executives have always insisted that it's only as good as the sales it can generate from the Canadian government.

Since, as outlined in the January 1st, 2019 post, "2018: The Year in Space for Canada," MDA wasn't able to pull another "3rd generation Canadarm" sale out of the Federal government last year, MDA's market value might end up being less than anyone thought.

But a second measure of value could perhaps be MDA's collection of patents relating to the original construction of Canadarm based technology.

As outlined in the December 16th, 2016 post, "MDA says No Sale of Canadarm Technology to the US Government in NASA RESTORE-L, DARPA RSGS or "Any Other" Project," there is real concern on both sides of the border over whether or not MDA can even use components of Canadarm technology for independent NASA projects without the active participation and approval of the Canadian government.

An answer to this question of who owns the Canadarm patents will go a long way towards defining the true value of Canada's Maxar assets.

If Maxar can't move forward with high profile programs like the NASA RESTORE-L satellite servicing mission or the Defense Advanced Research Projects Agency (DARPA) Robotic Servicing of Geosynchronous Satellites (RSGS) project without the active participation of the Canadian government, the Canada's MDA might remain a Maxar asset.

Otherwise, all bets are off on MDA's future in Canada.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

Tuesday, January 01, 2019

2018: The Year in Space for Canada

          By Chuck Black

Last January, no one would ever have thought that the big Canadian space story of 2018 would be the slow destruction of Westminster CO based Maxar Technologies' market valuation on the New York Stock Exchange (NYSE) and its effect on Canada.

Maxar stock peaked with a January 4th, 2018 high of $65.25 US ($88.97 CDN) per share, then bottomed out with a December 24th, 2018 low of $9.55 US ($13.02) per share.

But while Maxar crashed and burned, a whole new generation of private sector, mostly Canadian owned and operated space focused firms quietly perfected their technology, slowly raised funds for expansion and painstakingly developed functional business plans.

Here's an overview of some of the important stories this blog has covered over the last year.

It's alliance with Dorval PQ based Bombardier Aerospace to turn Bombardier’s single-aisle C Series (now known as the Airbus A220) into a commercial success moved Ottobrunn Germany based Airbus Space and Defence into the front ranks of Canadian aerospace contractors and either saved or destroyed the Canadian aerospace industry, depending on who you're talking with. As outlined in the January 29th, 2018 post, "A Pyrrhic Victory for Bombardier," the year began with the successful dismissal of US trade sanctions. It ended with Bombardier selling off several business units and significant employee layoffs. As outlined in the December 20th, 2018 post, "Airbus Has Been in Canada for Thirty-Five Years and Wants to Increase its Contribution to Our Space Activities," Airbus finished out the year intending to utilize the good feelings flowing from the Canadian government because of the Bombardier partnership to grow its Canadian footprint. Graphic c/o Wendover Productions.

Maxar's strong start to the year was based on the perception (or presumption) that the Justin Trudeau Liberal government would follow through on the Federal Space Advisory Board (SAB) August 2017 preliminary report "Consultations on Canada’s future in space: What we heard," with enough new funding in the 2018 Federal Budget to finish the SAB report and light the way forward.

That final report, once written, was also expected to recommend at least one large new project with enough funding to keep Maxar happy, plus enough extra money to spread around to the rest of the space community to create the perception of a "balanced space program."

Three large projects were considered:
  • Additional RADARSAT's for the RCM (up to three more satellites on top of the currently planned three).
However, and as outlined in the March 8th, 2018 post, "Space Advisory Board Chair Admits Disappointment over Budget but Promises to Continue to Support Space Sector," the new funding didn't materialize, and the SAB slowly slid into irrelevance.

By the October 15th, 2018 post, "The Federal Space Advisory Board (SAB) Insists that It's Working Hard," there wasn't really anything for the SAB members to do, except attend conferences and reminisce about what could be accomplished with additional government funding.

It certainly didn't help much that, as outlined in the the February 27th, 2018 Toronto Star post, "Budget boosts science research, grant funding," the 2018 Federal budget substantially increased direct government funding for fundamental research, an area of interest which mollified many of the CSA's traditional academic partners.

Maxar also had a tough year on the Toronto Stock Exchange (TSE), dropping from its January 3rd, 2018 high of $82.01 CDN to bottom out at $13.04 CDN on December 24th, 2018 before recovering slightly in time for the year end. As outlined in the October 05, 2017 post, "MDA Acquisition of DigitalGlobe Closes; New US Based Combined Company now called Maxar Technologies," Richmond BC based MacDonald Dettwiler (a Canadian based company with a lengthy history of prime contracting for major space focused Canadian Space Agency (CSA), military and government programs) reincorporated in 2017 as US based Maxar in order to obtain access to the lucrative US satellite and military market. But the bottom fell out of the US geosynchronous (GEO) satellite market and, while the new Maxar did begin picking up US military, NASA and Defense Advanced Research Projects Agency (DARPA) contracts, Canada waffled over the political implications of providing new contracts for iconic Canadian technology to a US based firm. As outlined in the December 31st, 2018 CNW press release, "S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices," the shareholders of Maxar eventually completed a planned US "domestication" and "approved a change of domicile for the company from Canada to the United States." Maxar stock "will be removed from all S&P/TSX indices where the stock is a constituent prior to the open of trading on Monday, January 7th, 2019." Graphic c/o TSE: MAXR.

The 2018 Federal Budget also allocated $100Mln Cdn for low Earth orbit (LEO) broadband initiatives, although most of that was expected to end up with Ottawa ON based Telesat, which made the original project proposal as part of its "2018 Federal Pre-Budget Submission" to the 2018 Pre-Budget Consultations in Advance of the 2018 Budget in the fall of 2017.

By April, and as outlined in the April 20th, 2018 post, "Telesat Moves Forward with New Offices, New Plans, New Challenges and New Funding," Telesat was accessing financing supplied through a $100Mln CDN pot allocated through the Federal Strategic Innovation Fund in the 2018 Federal budget and a $20Mln CDN direct contribution from the government of Ontario. Several billion more will be needed to complete the program but the existing funding was a good start.

The assistance of the US Defense Advanced Research Projects Agency (DARPA) will also help. As outline in the November 27th, 2018 Telesat press release, "DARPA Selects Telesat’s LEO System to Support DARPA’s Blackjack Program," DARPA is exploring the use of Telesat's LEO system for DoD’s future space-based communications requirements.

Maxar CEO Howard Lance in July 2018. Photo c/o @MaxarTech.
Another potential source of government funding, the $950Mln Federal government “superclusters” initiative, didn't break in Maxar's favor either.

As outlined in the February 16th, 2018 post, "Ottawa Announces Winners of $950Mln 'Supercluster' Competition," a proposal to build a smart agri-food supercluster (which included Maxar participation) didn't make the final cut. 

A second proposal from the Ottawa ON based Satellite Canada Innovation Network (SATCAN), originally discussed in the August 3rd, 2017 post, "Satellite Canada Applies for Innovation SuperCluster Funds," wasn't funded either.

But other space focused hi-tech firms and their proposals fared better. Groups which included PQ based ABB Canada, Kitchener ON based Clearpath Robotics, Ottawa ON based C-CORE, Burnaby BC based D-Wave Systems, Cambridge ON based exactEarth and Vancouver BC based Urthecast all received supercluster funding. 

Maxar, which wasn't included in any of the successful applications, didn't immediately panic.

As late as the March 7th, 2018 Space News post, "SpaceX, Trudeau Will Help Lift Satellite Maker Maxar Out of Its Slide, CEO Says," Maxar CEO Howard Lance was still prepared to tell anyone willing to listen that, while the bottom had fallen out of the US geosynchronous (GEO) satellite market (a major source of revenue for Palo Alto CA based Maxar subsidiary SSL, which focused on the manufacture of expensive, high-profit communications satellites) and Canadian deals weren't moving forward, the situation was only temporary.

The markets would improve and, as noted explicitly in the article, Lance expected Canadian Prime Minister Justin Trudeau to come to Maxar's rescue with a new, government funded space project tailored to Maxar strengths before the end of the year.

It was a quiet year. As outlined in the December 28th, 2018 CSA post, "Highlights of 2018," the Canadian Space Agency listed twelve highlights for the year. They included the January 20th, 2018 addition of a new hand for the Canadarm, the tenth anniversary of the Special Purpose Dexterous Manipulator (SPDM) or DEXTRE on the International Space Station (ISS), the May 5th, 2018 announcement of the participants in the Canadian CubeSat Project, the fifteenth anniversary of SCISAT,  the arrival of the OSIRIS-Rex spacecraft (with Canada’s critical laser altimeter) at asteroid Bennu and the December 3rd, 2018 departure of Canadian astronaut David Saint-Jacques for the ISS. Graphic c/o CSA.

But by August, and as outlined in the August 10th, 2018 post, "Maxar Technologies Might be Getting Paranoid," Trudeau still hadn't offered up any space funding. Some, including New York NY based Spruce Point Capital Management, were even beginning to question the fundamental assumptions which had until now supported the Maxar stock price.

Maxar needed to develop a more proactive approach.

With the assistance of the Ottawa ON based Aerospace Industries Association of Canada (AIAC) and, as outlined in the September 13th, 2018 post, "Dead Cat Bounce! New Canadian Space "Coalition" Wants Much the Same as Last Time, But With Money," Maxar created an entirely new, ostensibly independent, Federal government lobby group tasked with helping to secure Canada's "place in space."

Over the next several weeks, the underlying structure of the lobby group, known as the Don't Let Go Canada coalition was uncovered in several articles, most notably the September 18th, 2018 post, "Colorado Based Maxar/MDA Asking for $1-2Bln to Build Another Canadarm for the US LOP-G."

Bains with Bridenstine on November 14th. Photo c/o Alex Tétreault.
The coalition was organized by Maxar through its Ontario based MDA subsidiary and focused primarily on encouraging the Canadian government to fund a multi-billion dollar "3rd generation Canadarm" for the proposed US LOP-G.
According to several high-level sources within the Canadian space industry, certain NASA employees (including Bill Gerstenmaier, the NASA administrator for human exploration and operations) are working with senior members of the Canadian Space Agency (CSA), the Aerospace Industry Association of Canada (AIAC) space committee and Maxar/MDA to co-ordinate a campaign to encourage the Federal government to announce funding for Canada's contribution to the LOP-G program as early as this fall, if possible.
The article also noted that much of the planning for the campaign (and many of the organizational e-mails) originated from MDA director of public affairs Leslie Swartman. MDA, as the holder of many of the original Canadarm patents, would be first in line for any new Canadarm derived work and could reasonably be expected to make a substantial profit off the program.

The coalition campaign culminated in an unusual November 2018 public request from NASA Administrator Jim Bridenstine for Canada to sign-on to the LOP-G program during a stage presentation at the 2018 Canadian Aerospace Summit, which was held in Ottawa ON on November 13th - 14th, 2018.

As outlined in the November 15th, 2018 post, "Innovation Minister Navdeep Bains Politely Pushes NASA Administrator Jim Bridenstine Under the Bus," Federal Innovation Minister Navdeep Bains provided a very public "no" to the NASA Administrator on the same stage, later the same day.


By now, there wasn't a lot of fight left in Maxar.

As outlined in the November 1st, 2018 post, "Maxar Technologies Share Price Collapses After Q3 Earnings Report Released," its stock price had collapsed two weeks earlier due to revenue shortfalls caused by the very same ongoing GEOsat market collapse noted back in March.

In response to the stock collapse and as outlined in the December 6th, 2018 Space News post, "Maxar sells portion of SSL real estate," Maxar began selling off its real estate holdings in an effort to raise money.

It also raised "the maximum consolidated debt leverage ratio," just in case the property sales couldn't generate enough cash to pay down the Maxar debt left over from its initial acquisition of SSL and Westminster CO based DigitalGlobe, the 2017 acquisition which began the process which turned Burnaby BC based MacDonald Dettwiler into Colorado based Maxar.

Worst of all, and as outlined in the December 12th, 2018 Nasdaq post, "Maxar Technologies Ltd. (MAXR) Ex-Dividend Date Scheduled for December 13, 2018," was the cancellation of Maxar's quarterly dividend.  Reducing or cancelling the amount of dividend paid to shareholders normally makes them unhappy and sends the message that the company is not doing well financially.

As outlined in the December 21st, 2018 Street Insider post, "Maxar Technologies (MAXR) continues to explore range of strategic alternatives for its GEO communications satellite line," the company "also continues to be actively engaged with its customers to procure additional GEO satellite orders."

Even with that, it's expected that Maxar will eventually be forced to divest itself of major portions (if not all) of its SSL large satellite manufacturing business. Maxar has promised to announce a decision regarding the strategic direction of its GEO business in the new year.

At least one Canadian expatriate could claim to have had a good year. Cape Canaveral FL based Moon Express (ME) founder and CEO Robert D. Richards (shown here with CSA president Sylvain Laporte) returned to Canada to open a ME branch office and "explore options for collaboration with the CSA and Canada’s space sector on technologies and payloads for missions to the Moon." As outlined in the November 30th, 2018 post, "Procurement Contracts, Not Science or Engineering, Will Define the Next Generation of Robotics and Planetary Rovers," ME is one of nine "US based companies (which) are now eligible to bid on NASA delivery services to the lunar surface through a new Commercial Lunar Payload Services (CLPS) program, a series of fixed price procurement contracts NASA will begin issuing in 2019 which are intended to facilitate the planned US return to the Moon." The program also has more than a passing resemblance to the very successful Commercial Orbital Transportation Services (COTS) fixed priced NASA program, which helped to turn Hawthorne CA based SpaceX into a titan of the NewSpace industry. Photo c/o ME.

Other Canadian companies have also had an adventurous year. They include:
  • The thirty seven organizations participating in the Canadian Cubesat Project which, as discussed in the May 7th, 2018 post, "Canadian Cubesat Project Finally Moving Forward," received Federal funding through fifteen grants of between $200,000 - $250,000 to post-secondary based teams attempting to build functioning cubesats for launch beginning in 2020.
  • Montreal PQ based Northstar Earth and Space which, as outlined in the November 16th, 2018 post, "A $52Mln CDN Financing Deal for Northstar Earth and Space Inc.," received funding for the development of "a global environment information platform which will transform humanity's ability to manage our impact on Earth and its natural resources," only one day after Innovation Minister Bains rejected the NASA Administrator Bridenstine's offer to announce participation (and funding) for a Canadian contribution to the US LOP-G.

In 2018, other Federal government departments and private sector organizations explored the use of space based assets to solve Earth based problems. The June 8th, 2018 post, "NRCan Explores Space Mining," covered the Natural Resources Canada (NRCan) initiative for input on space mining as part of its process to develop a new Canadian Minerals and Metals Plan (CMMP). The October 25th, 2018 post, "A White Paper on the "Case for a Global Telemedicine Vehicle Network," noted Ottawa ON based C-COM Satellite Systems concern over a global lack of local health care resources and addressed the challenge using modern telemedicine and telecommunications technologies. By the end of the year, and as outlined in the December 6th, 2018 post, "Space Mining and Innovation Should Be Encouraged Through the Tax Code, According to NRCan and CATA Alliance," both NRCan and the Ottawa ON based Canadian Advance Technology Alliance (CATA Alliance) were suggesting that the best way to encourage innovative new space technologies was through the tax code and not via direct government grants. Graphic c/o Planetary Resources.

Some Canadian based firms attempted to overcome challenges related to perception and politics.

As outlined in the April 13th, 2018 post, "Ukrainian Rockets Like the Cyclone 4M Are Too Dangerous an Investment for Western Interests: Kyiv Post," Nova Scotia based Maritime Launch Services (MLS), a joint venture of three US based firms attempting to open a East Coast based launch facility for Ukrainian built Cyclone 4M rocket, spent most of the year scrambling to raise funds and convince the Federal government that they had a plan worth supporting. 

By spring, as outlined in the May 25th, 2018 post, "Maritime Launch Services Will Not Say When It Will Begin Building Proposed Canso NS Commercial Spaceport," the wind had gone out of the sails of the project, even as MLS left the door open for other rockets to launch at the proposed facility. 

To its credit, MLS noted quite correctly in its August 2018 "Submission to the Standing Committee on Finance" for the 2019 Pre-Budget Consultations in Advance of the 2019 Budget that its very difficult to get a launch licence in Canada and the regulations governing this activity should be revised. 

In essence, and without substantially revised legislation, no one will ever be able to launch an orbital rocket from Canadian soil. Here's hoping that changes in 2019.

Inuvik based satellite receivers, built almost three years ago, are unusable today, after the failure of multiple attempts to fulfill Canadian government licencing requirements. Photo c/o Rolf Skatteboe.

Another group with problems over existing Canadian legislation governing space activities was the entire town of Inuvik NWT. 

As outlined in the March 5th, 2018 post, "That Commercial Ground Station Built by New North Networks in Inuvik Still Can't be Used," a local company attempting to fulfill a contract for the European Space Agency (ESA), an international organization which includes the CSA as a "co-operating" member, was unable to do so, even after an almost three year wait, because of Federal government delays in providing the appropriate permits and approvals. 

According to the article:
From a legal standpoint, the existing barriers favor legacy players, such as the Federal government owned Inuvik Satellite Station Facility (ISSF), administered by the Canada Centre for Mapping and Earth Observation and part of Natural Resources Canada (CCMEO/NRCan), which opened in 2010 and is the only other ground station in the region
Eventually, as outlined in the May 31st, 2018 post, "Inuvik Mayor Calls Feds "Not Forthcoming" Regarding Private Sector Commercial Ground Station Application," even Inuvik Mayor Jim McDonald weighed in on the situation.

Over the summer, as outlined in the June 21st, 2018 post, "The Special Senate Committee on the Arctic Holds a Hearing on Northern Infrastructure & That "Unlicensed" Inuvik Groundstation," Senate hearings were held on the issue, but nothing ever came of it.

A year-end announcement by Seattle WA based Amazon may have rendered the whole issue mute.

As outlined in the December 03, 2018 post, "The New Amazon Web Services Ground Station (AWSGS) Will Disrupt Existing Ground Stations," a new "cloud-based product offering scalable computing power for satellite ground stations and data processing," using "Amazon’s current AWS cloud computing infrastructure." is likely only the latest step in rolling out of new, lower cost, satellite services to the public.

So what's going to happen next year in space for Canada? To find out, check out future editions of the Commercial Space blog.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

Monday, March 19, 2018

US & UK Develop Satellite Servicing Spacecraft; Canada Will Likely Miss the Boat, Again

          By Brian Orlotti

In recent weeks, two space firms have made public their plans for deploying satellite servicing spacecraft within the next two years. These plans highlight another emerging market for the burgeoning commercial space industry. While one of these firms is UK based and the other US based, Canada has a connection with a third player, albeit a flimsy one.


On March 12th, 2018 the London, UK-based Effective Space Solutions (ESS) announced a $100Mln USD ($131Mln CDN) deal with an unnamed customer to dispatch two spacecraft to service two orbiting communications satellites in 2020.

As outlined in the March 12th, 2018 Space News post, "Effective Space reserves ILS Proton rideshare for two satellite servicers," the spacecraft, dubbed ‘space drones,’ will be launched into geostationary orbit on a Russian Proton Breeze M rocket where they will attach themselves to the two satellites.

The space drones, using their on-board fuel, will then take over from the communication satellites near-empty on-board propulsion, enabling them to remain in orbit and extend their lives.

The ESS Space Drone is a 400 kilogram spacecraft (measuring 1m x 1m x 1.25m) that uses a universal docking connector to attach itself to a host satellite and then engages its on-board electrical propulsion to take over the station keeping and attitude control maneuvers from the host’s propulsion system. In this role, the space drone’s duties can include station-keeping, relocation, deorbiting, orbit correction and inclination correction.

ESS also has other roles in mind for space drones. After the launch of the first two space drones in 2020, the company intends to launch up to six new drones annually, servicing low Earth orbit satellite constellations, cleanup of space debris and performing other logistical services.


On March 13th, just a day later, the SpaceLogistics subsidiary of Dulles, VA based Orbital ATK, announced at the Satellite 2018 conference in Washington, DC that its satellite servicing spacecraft, called Mission Extension Vehicle 1 (MEV1), had just passed a critical design review and will be able to launch by the end of 2018.

As outlined in the March 14th, 2018 Space News post, "Orbital ATK unveils new version of satellite servicing vehicle" as part of a deal signed with satellite communications giant Intelsat, the MEV1 will attach itself to Intelsat-901, a communications satellite in geostationary orbit for nearly 15 years that is running out of fuel.

The MEV1 will use its six-foot-long extender to connect to Intelsat-901’s liquid apogee engine nozzle, a standard component, to refuel the satellite. Intelsat has also agreed to lease MEV2, expected to be completed by mid-2020.

Intelsat is leasing MEV 1 for five years, with an option for two more years. With an expected lifespan of 15+ years, MEV 1 can detach itself from Intelsat-901 after the initial five-year lease and service other customers for ten or more years due to its large store of fuel. In geostationary orbit, this would comprise a large market of military and spy satellites. Orbital ATK intends to build five MEVs.

Also revealed at the same conference was the company’s next-generation satellite-servicing concept, dubbed Mission Extension Pods (MEPs). It envisions a spacecraft carrying ten to twelve fuel pods that can be placed on aging or failing satellites with a robotic arm. Each pod could then move its host into a new orbital position or provide it more fuel to extend its life. After the mother spacecraft dispenses all of its pods, it would then become an MEV able to attach itself to other satellites for up to fifteen years.

Orbital ATK aims to deploy MEPs by 2021.


Finally, San Francisco based Maxar Technologies (formerly Macdonald Dettweiler and Associates of Richmond, BC), via its Space Systems Loral (SSL) subsidiary, has entered into a partnership with the US Defense Advanced Research Projects Agency (DARPA) and a second partnership with NASA (via its Restore-L program), to develop a robotic servicing spacecraft for geosynchronous satellites.

These partnerships will likely be the slowest moving, despite the current Restore-L tentative 2020 launch date, because of the government connections through DARPA and NASA, and the paperwork and oversight those connections engender. Of course, they are also likely to be the most lucrative, because of the cost-plus government contracts provided to SSL in order to fulfill the contracts.

Those partnerships and contracts spurred Orbital ATK to sue DARPA in 2017 on the grounds that the US government was unfairly competing with the private sector for the same service.

But as outlined in the July 17th, 2017 post, "Orbital ATK, DARPA, MacDonald Dettwiler, DigitalGlobe & Unleashing the Lobbyists," that lawsuit was ultimately dismissed even though, as can be seen here, there were and continue to be, at least two private companies (ESS and Orbital ATK) currently competing against the DARPA and NASA funded projects.

And while, as outlined in the December 16th, 2016 post, "MDA says No Sale of Canadarm Technology to the US Government in NASA RESTORE-L, DARPA RSGS or "Any Other" Project," this blog finds that claim dubious, so we concede a very slight Canadian connection with Maxar.


Of course, none of the benefits from SSL or from any other on-orbit satellite servicing program currently gearing up, are likely to benefit Canadian taxpayers, no matter what the Canadian Space Agency (CSA) might have promised as recently as 2013.

While on-orbit servicing of satellites is expected to be another lucrative market that can foster the growth of the commercial space industry, it also appears to be another market where Canada has fallen behind.

While US and UK firms prepare to service the heavens, Canada seems ready to miss the boat.

Again.
Brian Orlotti.
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Brian Orlotti is a regular contributor to the Commercial Space blog.

Tuesday, December 19, 2017

Maxar's Win and Canada's Loss

          By Brian Orlotti

On Friday, San Francisco-based Maxar Technologies Ltd. (formerly Richmond, BC-based MacDonald, Dettwiler and Associates) announced that it will use a refurbished SpaceX Falcon 9 rocket to launch the Canadian Government’s RADARSAT Constellation Mission (RCM) in 2018 and also announced that it had received four contracts valued at about $53.75Mln CDN with the Canadian Space Agency (CSA)

Maxar CEO Howard Lance, and his team at the NYSE last week. "On Friday, one of Maxar's business units, signed four contracts valued at about $42 million (US) with the Canadian Space Agency," according to CNBC. Maxar is "a leading commercial supplier of advanced satellite systems, optical imagery and geospatial analytics to commercial and government customers worldwide" and "has designs to grow earth observations and to advance the geospatial segment to better support commercial customers, the US Department of Defense and Intelligence Community and International Governmennts."  Graphic c/o CNBC.

As outlined in the December 15th, 2017 CNBC post, "Global communications company, Maxar, rings closing bell at NYSE," Maxar’s President and CEO, Howard Lance made the announcements on US based news network MSNBC (along with the online focused CNBC subsidiary), but mostly ignored Canadian media outlets, except for the December 15th, 2017 MDA Canadian press release, "MDA advances innovative robotics and rovers for space exploration and to support on-going operations of the ISS," which didn't cover the RCM announcement.

The announcements, and the way they were made, are a useful reminder of where the former Canadian firm's true focus now lies...

RCM is a Canadian Government space mission that will consist of a fleet of three Earth observation satellites which will utilize synthetic aperture radar (SAR) for a variety of purposes, including maritime surveillance, environmental monitoring and resource management. The RCM will improve on its predecessor, RADARSAT-2, by enabling more frequent coverage of Canadian territory and reduced risk of service outages.

As for the four CSA contracts valued at about $53.75Mln CDN announced by Maxar on the same day, they include:
  • A $800,000 CDN contract to develop future autonomous space hardware (including robotic arms, rovers, scientific instruments, and satellites) under the CSA Space Technology Development Program (STDP).
  • A $450,000 CDN contract for a concept study for two lunar rovers: a pressurized rover to transport astronauts on the Moon's surface and a smaller rover intended to collect lunar samples serve as a test bed for the technologies required for the pressurized rover.
Maxar Technologies was formed last October when MacDonald, Dettwiler and Associates (MDA) merged with Colorado based satellite imagery provider DigitalGlobe in a $2.4Bln CDN deal. Maxar is essentially a fusion of its two parent companies and their two acquisitions, including Palo Alto, CA based Space Systems Loral (SSL) and Gaithersburg, MD based Radiant Solutions. The new company employs over 6,000 people across the globe.


MacDonald, Dettwiler and Associates (MDA), via its corporate predecessors, MD Robotics and SPAR Aerospace, was the recipient of hundreds of millions of Canadian taxpayer dollars starting in the 1980’s for the development of the Canadarm and its derivatives.

However and as outlined in the December 16th, 2016 post, "MDA says No Sale of Canadarm Technology to the US Government in NASA RESTORE-L, DARPA RSGS or "Any Other" Project," Maxar and its subsidiaries have insisted that none of the products developed using Canadian taxpayer dollars have been used in US projects although many, including this blog, have strongly suggested otherwise.

After the CSA related announcements concluded, Maxar CEO Howard Lance took part in the ritual ringing of the closing bell at the New York Stock Exchange (NYSE).

Perhaps the bell was meant to celebrate Canadian foolishness as much as Maxar’s success.
Editors Note: The mainstream media is slowly gaining an awareness the material highlighted in this blog over the last few years, most recently in the December 28th, 2017 Globe and Mail post, "How Canada lost its foremost space company." 
According to that article, written by Michael Byers, who currently holds the Canada Research Chair in Global Politics and International Law at the University of British Columbia (UBC), "the government of Stephen Harper would never have allowed this (the reorganization of the Canadian based MacDonald Dettwiler into the US based Maxar Technologies) to happen."
According to Byers, "it is too late to stop MDA from becoming American, but not too late to consider punitive measures. If the company's CEO or directors knowingly misled the Trudeau government, they should be investigated for possible violations of Canadian law. As for the company, it could be blocked from bidding on Canadian government contracts for a period of time."
Expect the issue to become a partisan point of discussion during the run up to the next Federal election, which should happen sometime in 2020.
Brian Orlotti.
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Brian Orlotti is a regular contributor to the Commercial Space blog.

Tuesday, August 29, 2017

Terrence ("Terry") Harvey Ussher (May 28th, 1930 - August 22nd, 2017)

          By Chuck Black

Terry Ussher in an undated photo. Photo c/o theStar.com.
Terence ("Terry") Harvey Ussher, the program manager for the development of the first Canadarm at Spar Aerospace, has died.

Ussher, along with Spar VP of marketing (later president) John MacNaughton (1932 - 2006) and National Research Council (NRC) program managers Karl Doetsch and Gary Lindberg, were the best known of many Canadians shepherding our space program through its early days.

As outlined in his August 26th, 2017 Globe and Mail obituary under the title, "USSHER, Terence Harvey," Ussher was never satisfied with mediocrity:
In 1983, Canadarm was deployed on Space Shuttle Columbia's STS-2 mission where it was first tested in orbit. 
While our dad fretted that the 'Arm' might fail with 'Canada' tattooed on its' side, it performed flawlessly and gained international acclaim for Canada's space program. 
As the Program Manager for Canadarm at SPAR Aerospace, its' success was the pinnacle of a brilliant career borne of a passion for astronomy and space exploration. 
Ussher worked on the US Mercury, Gemini, Apollo and space shuttle programs. He is survived by his wife Ellen, sister Mary Brown, his children, Susan, John and Carolyn, their spouses Monica and Derek and his grandchildren, Katie, Sarah, Natalie, Jack and Luke.

A 1991 Toronto Star file photo showing Dr. Karl Doetsch, Dr. Garry Lindberg, John MacNaughton and Terry Ussher checking out the Canadarm as a preliminary to handing it off to NASA. Photo c/o Virtual Reference Library.

Friends and family may pay their respects at the Turner & Porter Yorke Chapel in Toronto on Wednesday, August 30th, 2017, from 10 am until the service begins in the Chapel at 11:00 am.

In lieu of flowers, the family has requested that donations be made to the Canadian Warplane Heritage Museum in Hamilton.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

Sunday, March 19, 2017

American MDA Subsidiary Promotes "DEXTRE" for US as NASA RESTORE-L Satellite Servicing Budget Slashed

          By Chuck Black

Richmond, BC based MacDonald Dettwiler (MDA) is having a bad week. The US National Aeronautics and Space Administration's (NASA) "2018 Budget Blueprint," has slashed funding for the NASA RESTORE-L on-orbit satellite servicing mission from $133Mln USD ($178Mln CDN) to $45Mln US ($60Mln CDN) for fiscal year 2018.

The cutbacks reflect the fact that there is at least one other major corporation competing against MDA (and its US based surrogates) for multiple US government on-orbit satellite servicing contracts.

This competition will also affect how MDA treats its crown jewels, the legacy Canadian government funded Canadarm derived technology generally considered essential to any realistic on-orbit satellite servicing development program. Until now, MDA has insisted that technology hasn't been used to support any new US contracts.

As outlined in the July 21st, 2009 post, "Even Werner von Braun was Wrong Once in a While...," the driving personality behind our first great space race once laid out a plan to send men to the Moon and Mars, using reusable spacecraft and a space station big enough to sustain and pay for itself plus support the extra repair/ refueling capacity needed to construct a lunar and planetary expedition fleet. Unfortunately for that plan, printed circuits superseded the fragile and short-lived vacuum tube used in the 1950's and we ended up building much more durable and capable satellites which didn't require the additional on-orbit satellite servicing capabilities envisioned by von Braun. But this situation might be changing. Two companies are currently battling over a variety of US government contracts related to on-orbit satellite servicing and more are waiting in the wings to see which way the wind is blowing. Graphic c/o Commercial Space blog

Here's what we know so far.

The 2018 US Budget Blueprint cites the "duplication" of effort between NASA and other agencies, the need to keep costs down and to "better position" NASA "to support a nascent commercial satellite servicing industry" as justification for the RESTORE-L cutbacks.

The cutbacks directly effect MDA partner/subsidiary Space Systems Loral (SSL). Late last year, as outlined in the December 12th, 2016 post, "Will the New Space Systems Loral $127Mln NASA Space Robotic Servicing Contract Help Canada?," SSL announced that it had been awarded a $127Mln US ($170Mln CDN) contract to build components for the NASA RESTORE-L mission.

The current cutbacks, although not yet formally approved by the US Congress, will likely spread out disbursements on the RESTORE-L program over multiple years, slowing down progress, cutting into SSL's bottom line and adding administrative costs to a program which will remain in existence, but do less and less each year.

RESTORE-L is currently scheduled for launch in "mid 2020."

As outlined in the September 18th, 2016 post, "Rocket Companies, But Not SpaceX, Are Collecting Rocket Patents," nations with active manned space programs, such as the United States, China and Russia, "represent three-fifths of all patent protection with a worldwide total of more than 4,300 patented space innovations filed since 1960." The only real exception to this concentration of space focused patents is Canada. As outlined in the article, the Canadian Space Agency (CSA) possesses substantial patents related to its Mobile Services System (MSS), which includes the Canadarm2 and the Special Purpose Dexterous Manipulator (SPDM), also known as DEXTRE, which currently performs a variety of functions on board the International Space Station (ISS). MDA has served as prime contractor for Canadian government contracts related to the SPDM for most of its existence. Graphic c/o Commercial Space blog.

The 2018 Blueprint also reflects the fact that there is at least one other major corporation competing for US government on-orbit satellite servicing contracts. As outlined in the February 12, 2017 post, "Look Ma! No Canadarms!!! MDA & Orbital ATK Battle for US On-Orbit Satellite Servicing Contracts," the very competitive Virginia based Orbital ATK, might slowly be gaining the upper hand.

For example, as outlined in the December 16th, 2016 post, "MDA says No Sale of Canadarm Technology to the US Government in NASA RESTORE-L, DARPA RSGS or "Any Other" Project," the official MDA position has been that no Canadian derived technology has ever been used in any US based projects.

But that position seems to have been reversed with the release of the March 15th, 2017 SSL press release, "MDA Recognized by NASA for Robotic Servicing of International Space Station,"

The SSL press release explicitly references contributions made by the Special Purpose Dexterous Manipulator (SPDM), also known as DEXTRE, during "a robotic upgrade to the International Space Station’s (ISS) power system which took place in January (2017)."

The press release also quotes SSL senior vice president of government systems Rich White as stating that the "team," at SSL and MDA US Systems, a division of MDA specifically referenced as being "managed by SSL," was honored "to be recognized by NASA for its contribution to this mission.”

According to White “SSL and MDA have a long history of collaboration in robotics work for NASA and we continue to work together to design innovative advanced robotic augmentation and servicing systems for future missions.”

A short video highlighting SSL capabilities and competencies in June 2012, about the time when then MDA CEO Dan Friedmann announced that MDA would be acquiring SSL for $875Mln US ($1,169Mln CDN), plus a further $112Mln US ($150Mln CDN) in dividends and other payments from SSL. As outlined June 27th, 2012 post, "MacDonald Dettwiler buys Space Systems Loral for $875M," SSL was purchased by MDA in order to "buy a space company with US roots to gain a foothold in the lucrative US market," and not because of any space robotics expertise possessed by SSL. Screen shot c/o SSL.

According to the press release, "SSL and MDA have the ability to build on robotics technologies proven on the Space Shuttle, the International Space Station (ISS), and Mars landers and rovers."

Canadian contributions to the space shuttle, the ISS and the various Mars landers and rovers are not mentioned once in the press release. The press release closes out by mentioning that "as a Silicon Valley innovator for more than 50 years, SSL’s advanced product line also includes state-of-the-art small satellites, and sophisticated robotics and automation solutions for remote operations."

That may be true now. But it wasn't true four years ago when MDA purchased SSL.

And it's also not totally clear why MDA needs to hide the Canadian origins of the technology which is seemingly becoming more and more critical to a successful SSL bid on US government satellite servicing contract. No doubt that information will come out over time.

But as for now, e-mail requests for clarification to both MDA corporate communications manager Wendy Keyser and SSL director of communications Wendy Lewis have gone unanswered.

According to Lewis, "We appreciate you giving us the opportunity to respond to your inquiry (but)... We need to gather the facts to make sure we provide an adequate explanation."

This post will be updated as that "adequate explanation" becomes available.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

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