Defense Minister believes Andøya spaceport may become a “strategically important resource” – E24

This is stated in a reply letter from Industry Minister Iselin Nybø (V) to Storting’s industry committee, which has been given access to E24, in which Defense Minister Frank Bakke-Jensen (H) also gives your evaluation of the unsolved project.

The Defense Minister believes that the Andøya spaceport “will be a strategically important resource in the long term to safeguard Norwegian defense and security interests and strengthen our contribution to NATO and cooperation with close allies.”

The Andøya spaceport, which is 90 percent owned by the state and 10 percent owned by Kongsberg Defense & Aerospace, through various requests, requested funds from the state to build a small satellite launch base at Andøya in Nordland.

The Armed Forces, which currently use satellites for monitoring and communications, plan to increase the number of small satellites under national control for these purposes in the coming years, according to the letter.

“Probable” with attacks in the room

The Defense Minister argues that the strategic importance of space is increasing and that the number of small satellites for commercial and military use is expected to increase significantly.

“Attacks on infrastructure in space are likely to be part of future conflicts. Therefore, rapid access to launch capabilities to replace or reinforce key military or community-critical satellite services it can be of great strategic importance in crisis, war and peace, ”reports Bakke-Jensen.

According to the Ministry of Defense, cooperation configurations between commercial and state military and civil agents can be a good solution in case of development of the Andøya spaceport.

At the same time, the Ministry indicates that security and integrity must be a high priority, and that requirements must be established for the approval of the actors and states involved in a possible development project, and that there must be requirements for the authorization of security of personnel who have access to sensitive equipment and information.

Today, the defense sees insufficient capacity and a long wait time in the launch capabilities of small satellites. Also, there are few players who only launch small satellites and are therefore generally included as an additional burden in relation to the launch of a larger satellite.

The Ministry of Defense also reports an interest in the Andøya spaceport from, among others, Canada, Germany, the United Kingdom and the United States through the Responsive Space Capabilites (RSC) association.

Industry and the left side support the project.

The space industry and opposition in Storting have supported the Andøya spaceport, while the government has been more cautious in its approach.

The commercial organization Nifro has long highlighted the launch base as the most important initiative for the space industry in Norway.

The Nammo defense group at Raufoss, which has developed and tested Norwegian space rockets that can be used only at the Andøya spaceport, is among the companies that have warned that they are in danger of losing important partners without clarification.

The government has been partially positive about the project, but has long pointed out that it is at high risk and that comprehensive profitability evaluations should be performed and if financing is legal within state aid regulations.

The opposition parties Ap, Sp and SV, on the other hand, want a more active and state-led trade policy to guarantee what they believe to be a unique industrial project that can create jobs and positive effects.

Åsunn Lyngedal (Ap) and Geir Pollestad (Sp) are among the business committee politicians who have criticized the government’s unwillingness to gamble.

The head of the Andøya spaceport, Odd Roger Enoksen, has gone from being very impatient at first to adopting a slightly softer line regarding the use of time by the government.

A variety of applications and analysis.

Andøya has geographic advantages, existing infrastructure and experience that can make a Norwegian launch base competitive against similar projects in the UK, Portugal, Sweden and New Zealand.

But the Andøya Spaceport, a subsidiary of the Andøya Space Center, has struggled to convince the government to provide the necessary funds.

The first request was submitted to former Commerce Minister Torbjørn Røe Isaksen in February 2019. At that time, the Andøya Space Center requested NOK 1.3 billion in capital through a state commercial investment.

But BCG’s external consulting firm in New York concluded that the business case described had an expected return on investment risk too low.

Subsequently, the Andøya Space Center has submitted several revised applications and business plans.

The first of these was presented to the Ministry of Commerce and Fisheries (NFD) in November 2019. At that time, the Andøya Space Center changed its approach and applied for a combination of government grants and capital, but the NFD concluded that it was probably not compatible with state aid regulations.

The latest audit was presented on April 1 of this year and will be evaluated in consultation with external advisers, according to the NFD.

“Therefore, it is premature to inform the Ministry’s evaluation of this request early,” writes the current Minister of Commerce Iselin Nybø in said letter of reply to the Industry Committee, dated April 3.

In addition, the Norwegian Space Center has carried out a socio-economic analysis using Oslo Economics and a survey of national interests at the commissioned launch base of NFD.

Kongsberg Defense & Aerospace has also carried out its own calculations.