Germany's OHB sees further IRIS² orders as Europe bolsters satellite network

By Maria Rugamer

BERLIN, Aug 31 (Reuters) - Satellite maker OHB expects to get more orders for the European Union's IRIS² satellite network, CEO Marco Fuchs said, after the German company secured a nearly €1 billion ($1.1 billion) contract under the project on Monday.

The contract, awarded by satellite operator SES for 18 satellites, is the first major industrial order announced under IRIS², the EU's flagship programme to develop sovereign satellite communications.

IRIS² is being developed by the SpaceRISE consortium, made up of SES, Eutelsat and Hispasat, with SES responsible for the medium-Earth orbit segment.

MORE ORDERS IN SIGHT

Fuchs said further industrial contracts were expected under IRIS² as the programme moves into the implementation phase.

"We hope that the number of satellites will increase," he told Reuters, adding that contracting was accelerating after years of planning. The EU expanded IRIS² earlier in August by 66 satellites, citing a changing security environment.

"The system is under pressure," Fuchs said. "People talk for a long time, and then when things get moving, everything has to happen very quickly."

SECURITY NEEDS RESHAPE REQUIREMENTS

European governments now place greater emphasis on resilient communications capabilities than when IRIS² was conceived, Fuchs said.

"Four or five years ago, we did not really feel this was necessary. Since the war in Ukraine, Europe has changed dramatically," he said. "The experience of wars has shown that when conflict breaks out, everybody wants capacity over the same operational area."

The central role of satellite communications in Ukraine during the war, provided by SpaceX's Starlink, has shown European countries their growing importance, Fuchs said.

This is exemplified by the recent agreement between Poland and the European Commission to increase the country's contribution to the constellation by €150 million, he added.

Germany is meanwhile pursuing its own military communications constellation, for which OHB and Rheinmetall have established a joint venture and submitted a bid.

"Europe is not fully sovereign," Fuchs said, citing dependencies in launch services and some electronic components. "We do not have enough rockets."

European governments and the European Space Agency have stepped up support for domestic launch providers in an effort to expand launch capacity.

The first IRIS² satellites are scheduled for launch in 2029, with initial services expected from 2030.

(Reporting by Maria Rugamer and Miranda Murray, Editing by Friederike Heine and Milla Nissi-Prussak)