Aalto, a company recently spun out of Airbus, has successfully raised $100 million from a consortium of Japanese companies to advance its high-altitude pseudo satellites (HAPS). This significant investment aims to enhance global connectivity and Earth observation services.
Strategic Investment and Partners
Leading the investment is NTT Docomo, a major mobile operator, aiming to leverage Aalto’s fixed-wing Zephyr drone to maintain connectivity in areas without terrestrial coverage. The investment group also includes the Development Bank of Japan, financial services firm Mizuho Bank, and Space Compass—a joint venture between NTT Docomo’s parent company and Sky Perfect JSAT, Japan’s leading satellite operator.
A New Era for Non-Terrestrial Connectivity
The investment announcement on June 3 marks the beginning of a strategic alliance focused on commercializing non-terrestrial connectivity and Earth observation across Asia using HAPS. Aalto’s CEO, Samer Halawi, emphasized that the funding will facilitate the development necessary for launching global commercial services by 2026. This includes initiating customer missions, establishing launch and landing sites for Zephyr, and progressing through the certification process.
Expansion and Testing
While Aalto is headquartered in the UK, its test flights for the Zephyr drone have primarily taken place in the United States. The company plans to conduct experimental missions from its first permanent base in Kenya this summer. Aalto has identified substantial early demand from government sectors, with Airbus US Space and Defense, based in Arlington, Virginia, partnering to meet the connectivity and remote sensing needs of U.S. government customers.
Technological Advancements and Challenges
Jean-Brice Dumont, head of air power at Airbus Defence and Space, highlighted Zephyr’s significant role in the space and defense ecosystem, serving both commercial and government sectors from the stratosphere. Halawi noted that advancements in solar power batteries next year could enable the Zephyr to remain airborne for up to 200 days. Currently, the record for the 25-meter-wide drone stands at 64 days in the stratosphere, far surpassing other heavier-than-air HAPS projects by companies like Softbank and BAE Systems.
Navigating Regulatory and Technical Hurdles
Despite their potential, HAPS ventures face technical challenges and regulatory hurdles, as they operate in largely unregulated airspace. Aalto’s investment, pending regulatory approvals, follows a 2022 Memorandum of Understanding with NTT Docomo and Space Compass.
Long-term Vision and Airbus’s Role
Airbus has invested over two decades in developing Zephyr’s core technology and will remain Aalto’s largest shareholder following this investment. This partnership aims to propel Aalto into a leading position in the non-terrestrial connectivity market, promising significantly lower latency compared to traditional satellites due to the closer proximity of HAPS to Earth.
This $100 million investment represents a pivotal step for Aalto as it strives to revolutionize global connectivity and Earth observation from the stratosphere.