Editor’s Note
Welcome to the sixth briefing of In Defence of Canada.
Space is increasingly recognized not as a sanctuary, but as a contested operational domain. This week, we examine the newly released Global Counterspace Capabilities 2026 report from the Secure World Foundation (SWF). The core finding is stark: while destructive kinetic anti-satellite (ASAT) testing remains taboo, electronic warfare (EW) and cyber operations have become normalized, daily tactical tools.
For Canada, the implications are immediate. While we do not field offensive space weapons, our domestic industry is building the architecture allied militaries need to operate in this environment. Dual-use technologies—from established commercial capabilities like resilient data relays and persistent space domain awareness (SDA), to emerging next-generation technologies like quantum sensing—are rapidly transitioning into critical defence requirements
We are seeing this commercial pivot play out in real-time across the supply chain. Last week, Canada and the European Space Agency (ESA) signed a classified security agreement, opening the door for deeper, restricted defence integration. Meanwhile, Canadian firms are aggressively securing allied and domestic capabilities: Kepler is building next-generation optical networks for ESA, SBQuantum is expanding its sensor technology into the U.S. defence market, and MDA Space has officially tapped Spaceflux to upgrade Canada’s sovereign ground-based space surveillance network.
In this issue, we break down the SWF counterspace report, EarthDaily’s constellation expansion, and the latest procurement moves defining Canada’s orbital footprint.
Marc Boucher
Editor-in-Chief
SpaceQ Media Inc.
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The Lead
A new assessment of global counterspace capabilities describes an orbital domain where electronic warfare and cyber operations remain the only methods actively used in military operations, even as nations pledge to halt destructive kinetic testing.
Analyzing the Secure World Foundation’s Global Counterspace Capabilities 2026 report through a domestic lens reveals several immediate policy and procurement implications for the Canadian defence sector:
- The Kinetic Taboo and the Rise of Cyber/EW: The SWF report notes a significant trend: while multiple nations possess the technological foundations for direct-ascent anti-satellite (DA-ASAT) weapons, current active military operations exclusively utilize non-destructive capabilities. The report highlights the 2022 cyberattack against Viasat’s KA-SAT network as a watershed moment, and notes that the pervasive use of Global Navigation Satellite System (GNSS) jamming in regions like Eastern Europe and the Middle East has become a daily operational hazard impacting both military and civilian platforms.
- Active Defence and the “Golden Dome”: As adversaries develop satellites capable of rendezvous and proximity operations (RPO) to closely approach high-value assets, allied nations are shifting toward active orbital defence. France plans to deploy “patrol” satellites by 2027, and Japan has introduced a program to develop “bodyguard satellites.” Crucially for Canada, the SWF report highlights the U.S. “Golden Dome for America” initiative. The report explicitly notes a significant policy shift: “Canada has not been officially invited to participate in it yet but it was reported in August 2025 that the Canadian government had removed all restrictions on Canada’s air and missile defences, giving it the option to join Golden Dome.”
- A Canadian Commercial Response: Canadian industry is actively pivoting to meet these threats. Bridging the operational gaps identified by the SWF, MDA Space recently introduced a platform capable of on-orbit inspection, electronic countermeasures (ECM) to mitigate signal interference, and active RPO. This domestic push into the active orbital defence market perfectly encapsulates the broader industry pivot outlined by the SWF.
- Space Situational Awareness and Allied Integration: Canada remains a foundational piece of the allied space architecture. Space Situational Awareness (SSA) continues to be a cornerstone of defensive counterspace operations, and the SWF report acknowledges the ongoing contribution of Canada’s Sapphire satellite to the U.S. Space Surveillance Network (SSN). By combining ground-based telescopes with established on-orbit monitoring, the Canadian Armed Forces is building a hybrid architecture to continuously detect, track, and monitor deep-space objects in an increasingly congested domain.
Read the more of the SWF Counterspace Report at SpaceQ
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Feature Analysis: Securing the European Supply Chain—From Policy to Payload
The recent signing of a General Security of Information Agreement (GSOIA) between the Canadian Space Agency (CSA) and the European Space Agency (ESA) is more than administrative housekeeping; it is a vital procurement bridge. As Europe increasingly pivots its orbital infrastructure toward dual-use and restricted security mandates, Canadian space and defence contractors require this exact legal framework to securely exchange classified information and bid on sensitive allied initiatives.
We are already seeing the dividends of this deeper European integration. Toronto-based Kepler Communications recently secured a €18.6 million (approximately $30.1 million CAD) prime contract for ESA’s HydRON Element 3. HydRON is a foundational piece of Europe’s future secure, high-throughput optical communications architecture. Kepler’s role as prime contractor is to deliver a hosted-payload mission that validates the on-orbit interoperability of optical communication terminals (OCTs) supplied by multiple European manufacturers.
The Kepler mission also perfectly illustrates the modern convergence of commercial communications and defence requirements. Alongside the optical data relay terminals, the spacecraft will host a space domain awareness (SDA) payload from Germany’s Vyoma GmbH, designed to provide real-time data on orbital threats and debris.
For Canada’s defence industrial base, the GSOIA and the HydRON contract signal a clear, actionable pathway. The European market is aggressively building out sovereign, secure orbital networks capable of resisting electronic and cyber warfare. Canadian firms that can navigate these classified information-sharing frameworks and deliver interoperable, secure hardware—like Kepler—are now uniquely positioned to secure prime roles within allied space architectures.
Read the full story on the Canada-ESA security agreement at SpaceQ and Read the details of Kepler’s €18.6M HydRON prime contract at SpaceQ
Tactical Briefs
Canada and ESA Sign Classified Security Agreement: The Canadian Space Agency (CSA) and the European Space Agency (ESA) have officially signed a General Security of Information Agreement (GSOIA). This newly established legal framework allows the two agencies to securely exchange classified information, paving the way for deeper integration on restricted space defence and intelligence initiatives. Read the full report on the Canada-ESA security agreement at SpaceQ
Kepler Secures $30.1M Prime Contract for ESA’s HydRON Network: Toronto-based Kepler Communications continues to cement its role in Europe’s high-throughput broadband architecture, securing a €18.6 million (approximately $30.1 million CAD) prime contract for the ESA’s HydRON Element 3. Kepler will deliver a hosted-payload mission designed to validate the on-orbit interoperability of multiple optical communication terminals (OCTs) from various European manufacturers. The spacecraft will also carry a space situational awareness payload from Germany’s Vyoma GmbH to provide real-time space domain awareness services. Read about Kepler’s HydRON contract at SpaceQ
EarthDaily Prepares for Commercial EO Operations with Constellation Expansion: Vancouver’s EarthDaily Analytics is preparing to launch six additional satellites for its Earth observation constellation this May, followed by three more later in 2026. CEO Donald Osborne confirmed the company is on track to begin full commercial operations and data availability by September 2026. The system is built for broad-area change detection, capturing continuous, calibrated, and analysis-ready data across 22 spectral bands to support AI and operational models. The company also recently secured an eight-figure data subscription agreement with a U.S. defence and intelligence contractor. Read the full interview on EarthDaily’s constellation expansion at SpaceQ
MDA Space Selects Spaceflux for Surveillance of Space 2 Observatories: Following its $32 million Surveillance of Space 2 (SofS 2) contract award, MDA Space has selected UK-based Spaceflux as the optical systems provider for Canada’s three new ground-based observatories. Spaceflux will integrate its proprietary optical technology and Cortex AI platform into the new facilities located in Alberta, Manitoba, and New Brunswick, which are scheduled for delivery to the Canadian Armed Forces by 2028. The network will track objects from low Earth orbit out to the geostationary belt, providing an immediate upgrade to Canada’s space domain awareness infrastructure and supplementing the aging Sapphire satellite. Read the full story at SpaceQ
SBQuantum Closes $4M USD Seed Round and Targets U.S. Defence Market: Sherbrooke-based quantum sensor developer SBQuantum has closed an oversubscribed $4 million USD (approximately $5.48 million CAD) seed funding round. Coinciding with the capital injection, the company appointed a new chief executive and established a dedicated United States subsidiary. This strategic expansion is explicitly designed to position the startup to compete for lucrative American defence and government contracts utilizing its advanced quantum magnetometer technology. Read about SBQuantum’s seed round and U.S. expansion at SpaceQ
Global Watch
USSF Unveils “Objective Force” Plan for 2040: Outlining its long-term operational roadmap, the U.S. Space Force has released its unclassified “Objective Force” plan for the next 15 years, extending to 2040. Chief of Space Operations Gen. Chance Saltzman stated the service must grow significantly over the next five to 10 years, adding thousands of Guardians and necessary infrastructure. The plan outlines integrating offensive and defensive counterspace capabilities across orbital, electronic, and cyber missions, shifting to a mature warfighting approach centered on campaigning and maneuver. Read the full breakdown of the Objective Force 2040 plan at Breaking Defense
Space Force Awards Nine Orbital AMTI Contracts: The U.S. Space Force has awarded nine firms nascent contracts to build a satellite constellation capable of airborne moving target indication (AMTI) from orbit. Revealed by Air Force Secretary Troy Meink at the Space Symposium, the awards follow a fiscal 2027 budget request of $7 billion to start buying space-based AMTI systems. The service is pursuing a “system-of-systems” approach to build a multi-vendor space segment that will form the industrial base for the AMTI program. Read the details of the AMTI constellation contracts at Breaking Defense
Rheinmetall and OHB Form Joint Venture for German Armed Forces: Germany’s independent competition authority, the Bundeskartellamt, has approved a joint venture between Rheinmetall Digital GmbH and OHB SE. The new entity will act as a systems integrator and main contractor to bid on a future Bundeswehr public procurement contract focused on expanding military satellite communications. OHB will handle the space and ground segments, while Rheinmetall Digital will focus on the user and network segments, including end-user terminals. Read the full report on the Rheinmetall-OHB joint venture at European Spaceflight
Guest Opinion: Grading Canada’s New Defence Industrial Strategy
With the release of Security, Sovereignty and Prosperity: Canada’s Defence Industrial Strategy (DIS) in February 2026, the Canadian government finally articulated a whole-of-government approach to building sovereign defence capacity.
However, translating this ambitious strategy into actionable procurement remains a challenge. Writing for the Canadian Global Affairs Institute (CGAI) this week, a new analysis examines whether the document meets the sector’s primary expectations, particularly concerning the newly established Defence Investment Agency (DIA). While praising the strategy for acknowledging the need for sovereign industrial capabilities, the piece highlights the tension between competing priorities:
“Early commentary by Philippe Lagassé supports the vision statement issue when he observes, ‘There are two sets of priorities here, one military, the other economic, and their differences have been smoothed over.’ … [T]he DIS implies the Defence Investment Agency (DIA) will have the authorities required to overcome any resistance when dealing with large capital investments. Readers of the DIS will recognize how ambitious the strategy is when it articulates nine areas where it will advance Canadian sovereignty and strengthen the economy by 2035… If the government really intends to grow small and medium size business and integrate them into the wider defence industrial ecosystem, this is another area that will need to be monitored over the long term, with decisions actually reflecting this priority rather than defaulting to larger primes.”
Read the full analysis of Canada’s Defence Industrial Strategy at CGAI
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