The 2021 federal budget contains many initiatives to help businesses, but when looking at the space sector there is only item that clearly targets an initiative that the Canadian Space Agency (CSA) is leading, and that’s space-based earth observation.
The federal budget rarely contains more than a few mentions of Canada’s space sector and this years budget is no exception.
Capitalizing on Space-based Earth Observation
The notable mentions this year are in Chapter 4, Investing in World-leading Research and Innovation. Here’s you’ll find the Capitalizing on Space-based Earth Observation (SBEO) section.
This section elaborates on Priority 3 from this years CSA 2021/22 Departmental Plan. The government is proposing an additional “80.2 million over eleven years, starting in 2021-22, with $14.9 million in remaining amortization and $6.2 million per year ongoing, to Natural Resources Canada and Environment and Climate Change Canada to replace and expand critical but aging ground-based infrastructure to receive satellite data.” While the funds aren’t going directly to the CSA, the CSA is coordinating the governments SBEO plans.
Of the $80.2 million in new funds, $36 million is allocated over the next five years. $5 million this year, $10 million next year, $6 million in fiscal years 2023/24 and 2024/25 and lastly $9 million in 2025/26. The remaining $44.2 million is meant to be allocated the following six years after fiscal years 2025/26.
The Canadian Space Agency will receive $9.9 million over two years, starting this fiscal year “to plan for the next generation of Earth observation satellites.”
And that’s it for any direct funding for the space sector in the budget.
Supporting Innovation and Industrial Transformation
This section relates to the Strategic Innovation Fund which outlines $10.75 billion for the Net Zero Accelerator ($8B), the aerospace sector ($1.75B) and the bio-manufacturing and life sciences sector ($1B). Some of the funds mentioned here had already been announced.
The aerospace sector funding of $1.75B is a little short on details. The budget document states that the “$1.75 billion in support over seven years would be targeted toward aerospace in recognition of the longer-lasting impacts to this sector following COVID- 19.” This is in addition to the $250 million Aerospace Regional Recovery Initiative detailed below. I think it’s fair to say that most of, if not all of this funding, will go to the aviation sector.
The Net Zero Accelerator does not appear to have an direct funding for programs associated with the space sector.
While the Strategic Innovation Fund has been used to fund some space projects, notably Telesat’s Lightspeed and NorthStar Earth and Space constellations, it’s unclear if any funds will be made available to future space projects.
Launching a National Quantum Strategy
The government is proposing $360 million to launch a National Quantum Strategy. The CSA is already working on getting the Quantum Encryption and Science Satellite (QEYSSat) launched and in January of this year submitted a satellite license application with ISED. Last June Honeywell Aerospace won a CSA contract to build the satellite.
The government stated that it would provide further details on the new strategy in the coming months. It seems unlikely that more funds would be allocated to another quantum satellite until QEYSSat has been launched and some results are in.
Preparing Canada’s Aerospace Sector for Recovery
The government states that “Budget 2021 proposes to provide $250 million over three years, on a cash basis, starting in 2021-22, for the regional development agencies to deliver an Aerospace Regional Recovery Initiative, which would support small and medium-sized firms in improving productivity, strengthening commercialization, and greening their operations and products.”
It’s unlikely that any of these funds would go to the space sector. However, a company such as Magellan Aerospace, with a large aviation component, and a small space component, could be a beneficiary.