UK backs satellite communications with £6.9 million investment

The UK Space Agency has announced a £6.9 million investment for five UK-led projects developing the next wave of satellite communications - from in-orbit refuelling to 5G from space and optical links for lunar missions. The investment comes through ESA’s ARTES programme and reinforces the UK’s ambition to remain a major European player in advanced connectivity.

With Europe’s satellite demand projected to hit £40 billion by 2033, the UK is positioning itself to capture a significant share. Even a modest 2% slice would generate around £800 million for the UK economy.

Space Minister Liz Lloyd emphasised how deeply satellite technology underpins daily life: “From sat nav to mobile phones and online banking – space is where it all happens. By backing our UK sector, we’re creating high-skilled jobs, attracting investment, and ensuring space technologies connect communities to the services they need.”

The funded projects highlight the breadth of UK expertise. Orbit Fab will advance satellite refuelling technology, enabling electric-propulsion spacecraft to stay on-orbit for longer or manoeuvre away from threats. Cornwall’s Goonhilly Earth Station will develop equipment compatible with LunaNet, the emerging global framework for lunar communications.

Vicinity Technologies is building a 5G Non-Terrestrial Network payload and user terminals to provide uninterrupted connectivity - even in remote regions. Archangel Lightworks, supported by Eutelsat, is exploring optical communications for future OneWeb links. Meanwhile, Viasat UK will progress a system to help governments manage and secure satellite communications from multiple providers.

Dr Paul Bate, CEO of the UK Space Agency, said the investment demonstrates how space R&D translates into real-world benefits: “We’re building a globally competitive sector and ensuring communities across the UK can access the space-enabled services they rely on.”

The announcement comes ahead of the ESA Ministerial Council in Bremen on 26–27 November, where the government will confirm future funding priorities. Independent evaluation shows every £1 invested in ESA delivers £7.49 in economic return to the UK.

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