Propulsion issues on four GEO satellites with Power Processing Unit problems may lead to over $50 million in insurance claims amid growing space industry losses
Four GEO satellites, including Yahsat’s Al Yah 3, Avanti Communications’ Hylas 4, and Northrop Grumman’s MEV-1 and MEV-2, are facing propulsion issues due to malfunctioning Power Processing Units (PPUs).
This is a massive development in the world of space exploration and potential future risks of the space sector.
GEO satellites’ propulsion problems
PPUs are vital for providing electrical power to the satellites’ thrusters, crucial for maintaining their geostationary orbit (GEO) positions. The loss of one PPU on each affected satellite has forced them to operate with reduced power, impacting their 15-year design life.
All four satellites were constructed by Northrop Grumman in Virginia and launched between 2018 and 2020. The issue explicitly affects satellites built using the hybrid chemical-and-electric version of the GEOStar-3 satellite bus.
Satellite operators respond
Yahsat and Avanti Communications have remained tight-lipped about the condition of their satellites, while Northrop Grumman has refrained from commenting. Avanti’s Hylas 4, though affected, may not meet the threshold for an insurance claim.
Space insurance challenges in 2023
The space insurance industry is grappling with a challenging year. Losses totalling $770 million are expected from just two satellites, ViaSat-3 Americas and Inmarsat-6 F2.
This follows substantial losses in previous years, causing some underwriters to consider withdrawing from the market.
The impact on these satellites’ operations and the insurance landscape underscores the inherent risks in the space sector.
Broader challenges in the space industry
In summary, the propulsion problems affecting GEO satellites, compounded by the broader challenges in the space industry, highlight the growing complexity of insuring space assets. With millions of dollars at stake and a surge in loss claims, insurers face a tumultuous period.
The long-term ramifications of reduced satellite lifespans and the potential withdrawal of underwriters could reshape the landscape of space insurance.
As the space sector continues to expand, stakeholders must grapple with these evolving challenges, emphasising the need for improved satellite technology and risk management strategies to safeguard valuable assets in the cosmos.
