VZCZCXRO4244
RR RUEHIK
DE RUEHVI #1527/01 3351509
ZNR UUUUU ZZH
R 011509Z DEC 09
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC 3768
INFO RUCNMEM/EU MEMBER STATES
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEANAT/NASA WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 VIENNA 001527 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TSPA TSPL AU TNGD SENV
SUBJECT: Austria, Strong Niche Player in Europe's Space Industry 
 
VIENNA 00001527  001.2 OF 002 
 
 
Sensitive but unclassified -- protect accordingly. 
 
REF: A) Vienna 1287  B) Vienna 1382 
 
¶1. (U) SUMMARY: Austria has developed a successful niche within 
Europe's space industry in the areas of earth observation and 
satellite equipment since its late entry to the European Space 
Agency (1987).  Clusters of small earth observation firms (centered 
on universities in Salzburg, Innsbruck and Graz) specialize in 
analyzing copious and complex satellite data for a variety of end 
uses.  Another group of mid-size firms (largely in Vienna) supply 
satellite equipment and software -- foremost to ESA, but also to 
Boeing, NASA, JAXA (Japan), CNES (France) and CNSA (China).  R&D 
projects, often with German partners, are supported by ESA and/or 
the Austrian government.  Growing success (particularly in earth 
observation) brings commercial opportunities but may eventually 
raise technology control issues.  END SUMMARY. 
 
Earth Observation Sector 
- - - - - - - - - - - - - 
 
¶2. (U) Many of Austria's boutique earth observation firms initially 
developed their software modeling to address environmental and 
land-use problems in that alpine country.  Not surprisingly, these 
firms have become particularly good at steep, high-terrain analysis 
under high cloud coverage; examples include: 
-- using highly accurate elevation modeling to help build an 
airport; 
-- glacier monitoring for water resource management; and 
-- forest cover monitoring of deforestation and soil erosion, and to 
identify avalanche-prone areas. 
Some firms' products are being used by the World Bank and 
organizations for risk/climate change studies in various regions of 
the world. 
 
¶3. (U) Geoville (www.geoville.com), the largest of these firms, uses 
high resolution TerraSAR-X data and digital surface modeling to 
analyze such issues as oil reserves (in Kuwait and Saudi Arabia). 
Geoville is involved in World Bank studies and several EU projects 
monitoring global environment, natural disaster, and security issues 
(GMES, GEOLAND2 and GSE LAND). 
 
¶4. (U) Small firms in Austria developing satellite-downstream 
applications include EOX IT Services, Enveo Environmental Earth 
Observation, BGIS, GRID-IT, GCS Global Communications, and 
Intergraph Austria.  These firms are excelling not only at 
evaluating satellite data, but have also developed products that can 
manage the large volume of large 3D satellite data so as to allow 
users rapid and efficient access - a particularly useful tool for 
natural or civil crisis management. 
 
Satellite Suppliers 
- - - - - - - - - - - 
 
¶5. (U) The leading satellite equipment supplier in Austria is Ruag 
Space (www.space.at / formerly Austrian Aerospace and a subsidiary 
of Sweden's Saab Space until 2008, when it became a subsidiary of 
Switzerland's Ruag Holding).  Its key satellite products include: 
 -- customized multilayer insulation; 
 -- onboard electronics (e.g. navigation signal generators and GPS 
receivers); and 
 -- onboard positioning mechanisms (for pointing ion thrusters or 
deploying appendages). 
In 2009, Ruag Space supplied GPS receivers for the ESA's Global 
Monitoring for Environment and Security (GMES) program, and provided 
equipment and insulation for ESA's Herschel/Plank and GOCE 
satellites. 
 
¶6. (U) Siemens Austria is also an active satellite supplier, working 
primarily on the European Galileo project.  It specializes in VSAT 
monitoring systems, SIECAMS for monitoring of signal spectrum 
transmitted via satellite, and ground system/mission control 
software.  Both Ruag and Siemens sell most of their products to the 
ESA, whereas smaller Austrian satellite suppliers -- including Magna 
Steyr Space Technology (cryogenic feed lines) and start-up Orbspace 
(vehicle system design and rocket propulsion) -- sell to largely 
non-ESA customers. 
 
Modest, but Well Targeted Government Support 
- - - - - - - - - - - - - - - - - - - - - - - 
 
¶7. (U) The GoA supports space R&D through its modest contribution to 
EU programs: in 2009 it gave EUR 15.6 million to ESA directly, 
spending another EUR 18.4 million to participate in ESA research 
programs and EUR 4.1 million to participate in EUMETSAT.  At the 
national level, the GoA has funded space research through the 
Austrian Space Applications Program (ASAP) since 2002; in 2009, ASAP 
had a budget of EUR 11.9 million, of which 2.6 million is set aside 
for GMES projects.  ASAP focuses on space applications including 
navigation, telecommunication, and earth observation.  The largest 
 
VIENNA 00001527  002.2 OF 002 
 
 
element of ASAP is the ARTIST project ("Austrian Radionavigation 
Technology and Integrated Satnav Services and Product Testbed") 
which funds "intelligent transport" and has been used to test 
Galileo applications and services.  According to Space Agency head 
Harald Posch, the government is now underwriting loans to small 
firms with riskier projects, who cannot find private credit due to 
the worldwide banking crisis. 
 
COMMENT 
- - - - 
 
¶8. (SBU) Austria's active earth observation sector is an outgrowth 
of heavy government spending on the environment and high-tech R&D. 
The sector should benefit significantly from a Copenhagen-process 
agreement on climate change that will no doubt entail expanded 
land-use monitoring.  There are also growing synergies with 
Austria's light aircraft and unmanned aircraft sector which already 
offer remote sensing capabilities(which Post will describe Septel). 
However, these new commercial opportunities are likely to bring 
technology control concerns (Ref B). END COMMENT. 
 
EACHO