With the explosion of interest in Low Earth Orbit (LEO) satellites and direct-to-device (D2D) satellite services in recent years, the UK government is racing to secure the country’s place as a space innovator.
Between 2024 and 2025, the UK government said it catalysed £2.2 billion in investment and revenue for the UK space sector, a move it said was crucial to ensuring a sovereign and competitive satellite industry.
Today, the UK Space Agency has announced a further £13 million in funding for a range of UK-based satellite initiatives, aiming to boost the sector’s development and deliver economic benefits across the country. These 16 projects selected for support cover a wide range of topics, from technical R&D work to pilot connectivity projects in rural locations.
The largest tranche of the funding – £2.1 million – is going to the STARS project by Exobotics Ltd, which aims to develop “next-generation optical communications capability designed to provide ultra-fast, resilient and near real-time connectivity for satellite operators”. This will take the form of a satellite relay network, used to rapidly transmit mission-critical data.
Other large tranches are being given to Project Optimus (£1.845 million), a laser communications system that can transmit data between satellites and the ground at over 100 Gbps; Airbus’s Theia project (£1.5 million), which aims to make satellite processor functions reprogrammable and customisable while still in orbit; and the QUAKES (Quick Universal Array for Ka-band, E-band, and S-band Earth Stations) project (£1.71 million) from Orbital Astronautics Ltd, which is developing a compact, portable ground station that can be rapidly deployed and connect to multiple satellites at once.
Some of the smaller grants were given to projects with far more tangible benefits for UK citizens. CGI’s SODOR (Satellites for Digitalisation of Railways) project, for example, has been given £428,000 to fit a ScotRail train West Highland Line with satellite communications equipment, providing reliable broadband in one of the UK’s most remote rail corridors.
Additionally, the Gardens, Allotments and Urban Farming Facilitator (GAUFF) Sensor project (£199,000) from agricultural connectivity specialist Farmer Charlie will support the development of satellite-linked agricultural sensors that are designed to work in locations where terrestrial connectivity is poor.
“By combining affordable sensors with satellite connectivity, we are making it easier for growers to make informed decisions, improve productivity and farm more sustainably anywhere in the UK,” said Betty Bonnardel MBE, CEO of Farmer Charlie.
All of these projects will be delivered through the European Space Agency (ESA)’s Advanced Research in Telecommunication Systems (ARTES) programme, which is supported by the UK Space Agency, itself part of the Department for Science, Innovation and Technology.
“This investment shows how innovations in the UK’s satellite sector can improve lives, with better connectivity delivering internet access for more train journeys, and smarter farming,” said Space Minister Liz Lloyd. “By backing brilliant British companies, we are not only furthering our status as one of the world’s leading space powers, but creating high-quality jobs and new opportunities across the UK.”
A complete breakdown of the funding commitment to each of the 16 projects is available here.
Satellites are increasingly being recognised as critical part of the UK’s telecommunications infrastructure. According to a government fact sheet from 2024 around 18% of the UK’s GDP (£454 billion) is reliant on satellite connectivity
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