Seraphim Space Investment Trust PLC (LSE:SSIT) said it invested US$12.5mln in a satellite servicing company that is one of the market leaders in ‘orbital sustainability’ through the reduction of space debris.
Headquartered in Japan but with offices in the US, UK and elsewhere, Astroscale Holdings Inc offers in-orbit services to transport, inspect and otherwise extend the life of satellites, or remove those that are beyond repair.
Seraphim’s investment was part of a US$109mln funding round. Investors also included Japan’s THE FUND, Japan Growth Capital Investment Corporation and AXA.
Astroscale’s services are in demand due to growing concerns about the long-term sustainable health of Earth’s orbital areas as advances in technology have made it cheaper to manufacture and launch satellites, leading to thousands being launched each year.
The trust said while there is currently no binding international treaty regarding the mitigation of space debris, national licensing bodies have started to place stricter requirements on operators.
There are also a growing number of government-funded schemes to mitigate the amount of space debris, including a public-private partnership led by the European Space Agency (ESA) and UK government-backed OneWeb. This selected Astroscale to develop its end-of-life technology and capabilities. The Japan Aerospace Exploration Agency also partnered with Astroscale for a debris removal project that aims to remove a discarded rocket body from orbit.
Mark Boggett, chief executive of the trust’s manager, Seraphim Space (Manager) LLP, said: “The long-term sustainable health of the space sector is becoming ever more important with tens of thousands of satellite launches planned in the coming years.
“Astroscale is already the category leader in the global on-orbit servicing market. Its founder and CEO Nobu Okada is credited worldwide as a key figure in galvanising the space industry into action. The ball is now firmly rolling on regulation and self-regulation to protect the space environment. We believe that now is the optimum time to invest into this emerging market that will be worth $billions over the coming decades."
Will Whitehorn, chair of the trust, added: "This investment is an example of the company's commitment to Environmental, Social, and Governance (ESG) and impactful investment. Astroscale also represents the company's first investment in Asia, highlighting the global nature of our strategy to invest in emerging category leaders."