WASHINGTON — Space companies that specialize in satellite servicing and debris removal are making a renewed push into commercial markets and trying to prove the economic viability of their services, executives said at the recent SpaceCom conference in Orlando, Florida.
Companies are caught in a challenging cycle: The Pentagon, long viewed as a potential anchor customer, wants to see more mature technology before committing significant funding, while commercial satellite operators remain skeptical about the cost-effectiveness of extending their satellites’ lives rather than simply replacing them.
“Satellite servicing is not a new concept, but it’s always been hard and expensive, not a scalable solution,” said Michael Madrid, chief growth officer at Starfish Space, a startup developing a vehicle called Otter for debris capturing and satellite servicing.
Rather than promoting grand visions of space sustainability, Madrid said, companies need to demonstrate how in-orbit services can improve satellite operators’ bottom line.
While players like Northrop Grumman have built a business around servicing satellites in geostationary orbit, the case for orbital services becomes more complex in low Earth orbit, where satellites are cheaper and designed to be disposable.
Madrid said growing concerns about orbital congestion are creating new incentives for cleanup and maintenance services. “It’s hard to find people who are willing to pay to clean up the trash in the town square. But people do make an effort to take out the trash that’s in their backyard where they live,” he said, suggesting that large constellation operators should be motivated to protect their multi-billion-dollar investments by keeping their orbital neighborhoods clear of debris.
Orbit Fab, which is developing in-space refueling capabilities and orbital fuel depots for commercial and military customers, sees opportunities in servicing the servicing vehicles themselves.
“You don’t want to buy a new tow truck, tow one or two satellites and throw away the tow truck,” said Daniel Faber, Orbit Fab’s CEO. The company is also gaining traction with its fill and drain valves, which are used for both ground-based and orbital refueling.
Regulatory hurdles and military interest
Current regulations do not incentivize investments in satellite life extension, said Faber. The Federal Communications Commission (FCC) mandates that LEO satellites be disposed of within five years of mission completion. The agency does not recognize active debris removal services as an alternative compliance method.
“I’d love to see a 100% cleanup requirement,” Faber said. That would “terrify people” because of the cost, but it would also create incentives and economies of scale for debris removal.
Meanwhile, the U.S. military maintains interest in these technologies but moves cautiously. The Space Force has not requested significant funding for refueling efforts despite what some officials say is the potential strategic advantages of more maneuverable satellites.
Sean Lewis, a program manager at the Air Force Research Laboratory’s space vehicles directorate, pointed to previous expensive satellite-servicing experiments like the Defense Advanced Research Projects Agency’s Orbital Express. The technology failed to gain widespread adoption because the military did not see the utility.
While AFRL continues to support companies through Small Business Innovation Research funds, Lewis emphasized that the military “can’t carry” these companies indefinitely.
Sense of urgency
For the orbital servicing sector to succeed, companies must overcome both technical and market challenges, said Cameron Penny, head of business relations at debris cleanup firm Kall Morris Inc. He warned that the industry needs to move beyond endless technology demonstration phases.
“We need to commit, and do the deal now, and work toward that. Otherwise, we’re going to be stuck in this perpetual de-risk cycle,” Penny said.
The path forward may require tempering grand visions of orbital manufacturing and repair with more immediate, practical applications. As Madrid put it, while the industry might be full of “sci-fi nerds” excited about future possibilities, success depends on “trying to be really focused on where we think we can close business cases in the near term.”
One hurdle for the servicing industry is adapting to existing satellites that were never designed to be serviced. Madrid emphasized that requiring specific docking ports or interfaces could limit adoption.
“We think it’s important to operate with unprepared satellites,” Madrid said. “Innovators need to find ways to service satellites as they are, rather than imposing new requirements.”
He pointed out that satellite manufacturers likely see servicing as a potential threat to their business model. The traditional view has been that more servicing means fewer new satellite sales. However, he suggested that a more sustainable servicing market could benefit the entire industry by making satellite operations more efficient and profitable in the long term.
“If we help satellite operators become better businesses delivering more value,” Madrid said, “then that grows the pie for everyone in the space industry.”
