Four companies — Babayte, Spiral Hydrogen, MS Forest and Energy Risk Service — were selected in the latest application round of the European Space Agency’s Estonian Business Incubator (ESA BIC Estonia) through the Entrepreneurship and Innovation Foundation (EIS), and will each receive €60,000 in development support, for a total of €240,000.

ESA BIC Estonia Director Madis Võõras confirmed that the quality of the participants was impressive: “The number, high level and content of applications submitted for evaluation pleased the evaluation panel, but at the same time made the selection difficult. Therefore, it was decided to accept four aspirants instead of the planned three.”

Tehnopol Project Manager Kristiina Libe emphasized that space technology is no longer a separate world, but finds application in our everyday lives and economy: “We are increasingly seeing how satellite data and other space-based technologies can be used for the benefit of our planet… we are waiting for companies with enough ambition to apply for the program.”

Companies and their solutions

• Babayte (Tartu) is developing BabAI Orbital, a satellite-based artificial intelligence module used to avoid orbital drifts and collisions.
• Spiral Hydrogen (Tartu) is focusing on hydrogen production technology that achieves over 90% energy efficiency.
• MS Forest (Tallinn) is creating a dynamic forestry data registry that reduces inventory time and costs.
• Energy Risk Service (Tallinn) is processing satellite data for risk analytics and forecasting in the renewable energy sector.

Sven Lilla, Head of ESA BIC Estonia at Tartu Science Park, noted that the connection with space technologies in everyday life is becoming increasingly clear: “This time, there was a significantly high proportion of foreign founders among the candidates, which shows the growing attractiveness of the Estonian ecosystem.”

Paul Liias, Head of the Space Sector at the Ministry of Economic Affairs and Communications, added that state support through ESA BIC provides a significant boost to deep technology startups: “Through the investment in ESA BIC, the state provides a boost to the growth of the capital-intensive deep technology sector, helping Estonian startups take their first steps and gain experience in cooperation with ESA.”

ESA’s Estonian incubator has hosted 36 startups to date (half in Tartu, half in Tallinn), the city of Tartu has contributed €355,000 and Tallinn €345,000.

The companies have generated significant income with this: Tartu companies have paid over €6 million in labor taxes and made nearly €10 million in turnover, while Tallinn has made nearly €5 million and over €12 million in turnover, respectively.

ESA BIC Estonia aims to support a total of 15 space startups in the period 2023–2026 and to strongly spearhead local innovation.

This development support for forward-looking startups means a situation where space-based technologies can be widely applied in the local economy. The Estonian space sector is becoming increasingly visible and competitive — supporting both companies and the country's entire innovative growth curve.