Hong Kong-based satellite operator AsiaSat has secured a joint venture with another privately-held US weather start-up as it hunts for new sources of revenue.
The operator has agreed to host the first of six hyperspectral sensors being developed by…
Hong Kong-based satellite operator AsiaSat has secured a joint venture with another privately-held US weather start-up as it hunts for new sources of revenue.
The operator has agreed to host the first of six hyperspectral sensors being developed by GeoMetWatch on a new satellite it plans to launch in 2016 at 122E.
GeoMetWatch was granted the first commercial remote sensing licence from the US government in September 2010, enabling it to receive and sell atmospheric data collected from geosynchronous orbit. That same year it raised US$2m in funding in cooperation with Utah State University, and it later received a US$1m contract with the university to perfect its sensor technology, called STORM.
According to a stock exchange announcement by AsiaSat, the cost of the project in respect to their partnership, which will see them share cash flows from the service, will not exceed US$185m.
To help pay the hosted payload fees GeoMetWatch is preparing to issue convertible notes. Details of these have yet to be determined. It is also understood to be lining up export credit agency support.
AsiaSat CEO William Wade said: “We are excited to take part in this ground-breaking project that will provide advanced data to improve weather forecasting, natural disaster monitoring and climate modelling.
“This new partnership with GeoMetWatch will open up new opportunities to expand our satellite services into new areas, and allow us to explore a new source of revenue for the company.”
David Crain, GeoMetWatch’s CEO, said: “The first STORM sensor will provide unprecedented atmospheric and weather data over Asia and the Pacific region, for which we have already had significant interest to purchase the data when available.
“For the past 25 years, AsiaSat has been the preeminent satellite operator in Asia and we are pleased that our first STORM hyperspectral sounder will be hosted on their satellite.”
