Summary Document ▪ May 16-18, 2006 ▪ NASA Ames Research Park ▪ Moffet Field, California

Summary Document ▪ May 16-18, 2006 ▪ NASA Ames Research Park ▪ Moffet Field, California


Table of ContentsOverview 3Registered Attendees 4Mark Knall Presentation Graphic 5Fred Best RPC Presentation Graphic 6The Value Engine Graphic 7Jane Reifert Incredible Adventures Presentation Graphic 8A Space Market Place Graphic 9Industry Advisory Group 10Information Exchange 12Position Statement 13Pathfinder Project 14Marketing the Pathfinder Project 17Marketing 18Commercial Enterprise Options• Human Life Support / Habitats / Advanced Materials 19• Spacecraft Systems 20• Imaging and Communications 21• Power and Propulsion 23


Overview

On May 16-18, 2006, representatives from NASA, the Research Partnership Centers, the space industry, and the investment community gathered at the Ames Research Center at Moffet Field to explore the future of space commercialization. This forum was the next in a series of workshops focused on how to encourage the development of a space industry.

The focus of this workshop was how to leverage the technology portfolios and proven research capabilities of the RPC's. The workshop began with a series of presentations by Mark Nall and Frank Best on the history of the RPC's and a sampling of the technologies that the RPC's have developed. Participants then worked through a series of assignments in small teams to define the demand, supply and investment needs in several different focus areas and then identify and develop several investment opportunities in each area. In the final round of work, teams developed a Project Pathfinder plan, marketing ideas for the project, ideas for promoting the space commercialization opportunity and recommendations for an industry advisory group.

This document contains a high level summary of the work completed by the participants at this forum.


David AndermanConstellation Svcs. Int’l, Inc.

Woody AndersonNASA MSFC

Hugh ArifCisco Systems, Inc.

Jim BakerSpacehab, Inc.

James BensonSpace Dev

Fred BestCenter for Space Power

Dallas Bienhoff Boeing

Brad BlairCSM-CSR

Dave BoyleSpacecraft Techn. Center

Henry BrandhorstSpace Research Institute

Dave BrandtLockheed Martin

Rita BriggsLockheed Martin

Geoff BrownOntologent / M2Mi

Joe CarrollTether Applications, Inc.

Malcom CarterSpace Island Group

Sean CaseyUSRA

Phil Chapmant/Space

Kathleen ConnellThe Connell Whittaker Group LLC

Bonnie DaltonNASA ARC

Larry DeLucasUAB

Alan DeLunaUnited Space Alliance

Mita DesaiNASA

Mary Lynne DittmarDittmar Associates, Inc.

Dr. Marilyn Dudley-FloresOPS-Alaska

Arthur DulaAttorney At Law

Paul EckertBoeing Company - Space Exploration

Edward EllegoodState of Florida

Mike FinneyFinney Capital

Orin F FlaskGlobeOne Sourcing & Fulfillment Svcs.

Thomas GangaleOPS-Alaska & San Francisco St. Univ.

Rachel GarcesNASA MSFC

Bev GirtenNASA ARC

William GlennNASA Imaging Tech. Ctr. at FL Atlantic Univ.

Francine GordonF Gordon Group

James GordonN/A

Consuelo GriegoGlobal Impact

Lynn HarperSpace Portal NASA ARC

Klaus HeissHigh Frontier

Anthony HeÿengaUniversity of Colorado

Michael HicksLockheed Martin Advanced Tech. Ctr

Esther HillLockheed Martin/ NASA ARC

John HinesNASA ARC

Steve HingNASA ARC

Chris HoeftAndrews Space

Gary C HudsonAirLaunch LLC

Bill HulseyHulsey IP Lawyers, P.C.

Kathleen ImhoffPacific BioFacilities

Gary JahnsNASA ARC

Amaresh KolliparaSpace Venturing Forum

Roger LenardSNL

Henry LeonCreate Tech Village Corp.

Dr. David LivingstonThe Space Show

Chris MaeseNASA ARC

Richard MainsMains Associates

Alan MartyN/A

Paul MassonStrategic Alliances Resources Network, LLC

Goorge MayInstitute for Tech. Development

Beth McKnightResearch Partnership Ctrs. & SpaceClass

Gene MeyersSpace Island Group

Brian MitchellNASA/MSFC

Todd MosherLockheed Martin Space Systems

Gerry MurphyDesignNet Engineering

Mark NallNASA MSFC

Mary NapierN/A

Gene ScoutN/A

Mark NewfieldNASA ARC

Jim Pass, Ph.D.Astrosociology.com

Bruce PittmanACES

Richard PournelleN/A

Julian PrabhuBoeing

Dan RaskyNASA ARC

Paul ReichertSchering-Plough Research Inst.

Debra Reiss-BubenheimNASA ARC

Rex RidenoureEcliptic Enterprises Corp.

Peter SageSpace Island Group

Greg SchmidtNASA ARC

Hans SchnettlerLockheed Martin Space Exploration

Andrea SeastrandCalifornia Space Authority

Michael SimsNASA ARC

Phil SmithCal Space Grant Foundation

Robin SnelsonN/A

Ken SouzaSETI/NASA ARC

Louis StodieckBioServe Space Technologies

Dennis StoneNASA

Paul SuttonKabria Technologies

Al TadrosSpace Systems / Loral

Judy TurnerCalifornia Space Authority

Mark UhranNASA

Erika WagnerMIT Mars Gravity

Rod WilksATK

Lana WilsonCenter for Space Power

Dennis WingoSkycorp Incorporated

Mike WiskerchenCalifornia Space Grant Foundation

Bruce YostInovamar LLC

Allison ZunigaNASA ARC

Registered Attendees







Industry Advisory Group

• Advisory Committee on Commercial Enterprise in the Solar System (ACCESS):– Industry members representing a

cross-section of space entities– Bring strengths of industry diversity

to internal planning and collaboration

– Bring strengths of industry diversity to recommendations to NASA and other government agencies

– Draft regulatory environment for space commerce


Industry Advisory Group

• Discuss in ad-hoc industry group by August 1, 2006 ACCESS concept and agenda:

– Lunar Commerce Executive Roundtable sponsors, US Chamber of Commerce, Space Enterprise Council

• Issues to be discussed include:– Property rights in context of Outer Space Treaty, etc.

• Intellectual and physical• International recognition / compliance

– ITAR / INA / etc. as impediments to international collaboration

– Traffic control– Search and rescue– Liability– Salvage– Common standards – interoperability– Dispute solution / settlement– Space / surface debris– Government / industry roles– ACCESS organization – funding and mandate– Environmental issue– Heritage site protection (Apollo, etc.)

NASA

ARC

SpacePortal

IPT

ACES

International Agency

NASA Programs

DOD


Information Exchange

• Questions:– Other than money, what resources

would you most like to see or have access?

– Who else could benefit from the different aspects of what your project does?

– How can we share information and value?

• Resource hub• Space portal• “MySpace” for Space


Position Statement

• Government’s Role:– The role of government should be to

facilitate, not dominate, the growth of space commerce.

– Government’s role should ultimately decrease to achieve the goal of self-sustaining commercial activity

– Government should provide incentives, and legal-regulatory regime, and infrastructure.

– Important roles include:• Advance purchase• Coordination• Regulation

• Outcome:– To communicate in a compelling and concise

way the benefits that commercial space can bring to commerce, communities, and humanity at large. And lay out and present a way that making that happen that is believable, desirable, and inspirational…and compels economic development.

• Methods:– Documentaries

• Commercialization of space• Tie with TV, pop culture and gaming• Inventions of possibility / ROI

– Press conference• Communicate message• Incentives• Example of vision that NASA supports• The legacy of NASA

• Taglines:– The door to commercial space has just been

opened– The solution to a better world lies just

beyond this one – welcome to the magic of space

– We’ve spent 40 years and billions of dollars opening the door, now we’re sending you a VIP invitation

– We’re giving you the space to make it happen!

– Developing the magic of space


Pathfinder Project

• Comprehensive and Persuasive• Define and describe product(s)• Market research:

– Identify market(s)• Primary• Secondary• Etc.

– Quantify market(s)– Describe target addressable market(s)

• Define product development requirements

• Cost requirements• Build business models (include value

chain)• Build business case• Build business plan:

– Revenues– Costs– P/L– Cash flow– Balance sheet

Iterate

Pro forma 5 years


Pathfinder ProjectSpace Based Crystal Growth Business

• Grow crystals – fee for service• Grow crystals and determine

structure• Develop own drugs and license• Business plan (3 months)• Hanser, late access (-36 hrs),

temperature control, gentle re-entry• Pharma and jewelry• Develop a company that can

commercialize technology and fly monthly.

• Funding requires $500-1000K• Sample return requires grants or

funding source• 6 flights, 1000 samples/flight

• Start to finish 7-25 years• Target identification• Produce protein• Crystallization and structure• Medical and test• Culture• Animal• Human

– I, II, III


Pathfinder ProjectInfectious Disease / Drug Development / Human Health

• Infectious Disease Drug Development:– Target Identification– Drug test with SF associated models

• Business case as a function of launch $• Risk adjusted IRR• Venture Philanthropists• Central labs of big pharma / biotech• Team:

– Mary Lynne Dittmar, Louis Stodieck, Larry DeLucas, Lynn Harper / Rita Briggs (alt.), Bruce Pittman, David Livingston (?), Dallas Bienhoff(?), Bev Garten, Joe Casas, Joe Caroll

• Reconfigure CGRA for small free flyers• Approximately $500K development• Pharma-customer• Bio Booster

• Electronic nose UAB– Measure volatiles in samples (200

compounds) 1 sec.• 2 lasers – library of signatures• Cancer detection – NIH• Health monitoring• NASA – life detection, environmental

monitoring• Funding need for handheld version $500-

1000K• Wearable physiological monitoring in

extreme environments– NASA – EVA– Military – battlefield diagnostics– Firefighters– Deep sea diving– TRL – 4-5 – Need to rugged-ize and simplify

ops– Med ops funding now and DOD


Marketing the Pathfinder Project

• Objectives:– Educate / raise awareness of the need and

our solution– Inspire and build support

• Audiences:– High-tech (knowledgeable of space R&D)– General public at key milestones– Education community– NIH– CDC– Medical press– AMA– Health insurance companies– Pharmaceutical Companies

• Messages:– Flight-proven– Urgency!– Hardware built– We’re the best – i.e, differentiate– Value – fast track to a cure– Benefits – on the ground takes too long– Help us help you!

• Vehicles:– Medical journals / research publications– News media– Special events– Prizes– Conferences / workshops / exhibits

• Take space to biotech conferences and other customers

– Special class education programs– Press conferences– Medical writers fly on KC-135 with crystal

experiment and other experimental opportunities

– Give away crystal jewelry– Launch promotion– Live television and webcast– Website for project– Newsletter (print and electronic) to audiences


Marketing

• Audiences:– Investors– Policy makers (elected officials)– Trades– Potential partners– Research community– Educators– Next generation scientists

• Messages:– Capability– Innovations– Unique, will improve our life = value– Cost-savings– Time-savings

• Vehicles:– Authenticators– Television– Newspapers– Magazines– Trade publications– Education programs– Internet– Special events

How to get the word out

Audience

VehicleMessage

Communication


Commercial Enterprise OptionsHuman Life Support / Habitats / Advanced Materials

• Corporate Built Facility– Ownership: suitable for transfer to

commercial– Commercial management– Must be modular– NASA must guarantee minimum

usage• Possible Tenants:

– NASA exploration vehicle– NASA science– Department of Defense– China and Russia– Tourism industry– Mining– Other industries– Commercial science

• Lunar Base for exploration and other support– NASA funds and serves as an

“anchor tenant”– Staged development– Pay rent, utilities, etc.

• Options for building:– NASA built– Consortium– Commercial


Commercial Enterprise OptionsSpacecraft Systems

Cost= $7M+$7M+$6M= $20M

LV SC Ops

Facilities -$10M

Non-recurring engring -$30M

• Refuel & Resupply Service for Large GEO Assets– Extend lifetime of $400M

investment for $40M price yielding $20M profit

– Market assumptions:• 25 GEO launches per year

• 5 want servicing

• 5/yr @ $20M = $100M profit/yr

200

100

C

0Initial Funding

Development


Commercial Enterprise OptionsImaging and Communications

1. Timely Google Earth, Moon, Mars• Who are the customers?:

– World of internet users– Precision agriculture – viticulture– Real estate / insurance– Land use planning– Nosey neighbors– Commodity markets / investment– FEMA

• Size of market?:– Free now, would pay?

• Revenue strategy:– Creating tools for

• Cost:– Licensing of data by government entities

• Barriers:– Coverage, real-time, trending, time-

stamping, security• Do we need more infrastructure data or

correcting systems?:– Tools created by commercial interests

• E.g. Urban maps, Zillow Real Estate Portal

2. In “space” communication utility / Data storage (stage 1)

• 5-10 year implementation for development

• Who are the customers?:– Everyone!– Voice, video, data– Government– Private– Education

• Size of market?:– Requires government as anchor tenant– Execution – 80 satellites in 5 years as

Grayscale Iridium Corp.• Speed timeline:

– ROI at a cost of $5 million per unit LU/O unit transport cost


Commercial Enterprise OptionsImaging and Communications

3. Virtual Exploration of Moon, Mars, everywhere (stage 2)

• Who are the customers?:– Resource utilization– Government– Video game market / entertainment (e.g.

movies, commercials, etc.)• Discovery Channel• National Geographic

– Education• Size of market?:

– Competitive analysis and determine market• Scale:

– Both II and III can be used universally to be modified by end users

• Intangibles:– Knowledge

• Value propisition:– Gaming becomes virtual in real universe /

world • “Flying spacecraft in real space”


Commercial Enterprise OptionsPower and Propulsion

Propellant Sales:• Market: $5B/year LEO, $3B/year

Moon• R&D: LEO <$2.5B, Moon <$7B• Simple payback: 3.5 years LEO,

7 years Moon. • Simple ROI: $5B/year LEO and

$3B Moon cash flow. 20% of cash flow for investor ROI

Proven Science:• CEFGW• Propellant• Cryo management and ISRU• AR&D

• Good management team – yes• Track record• Market Barrier: NASA/USG for

LEO – Space X success• Demos 5 GEO transfers• Gut incentive / lunar refueling• 0-g, 0-tax


Commercial Enterprise OptionsPower and Propulsion

Opportunity #3:• ISRU propellants + building

materials• Analogue solar cell production with

regolith stimulants• (Moon) futures market: straddles,

puts, calls, hedge funds, long/short, R.L. & K.H.

Opportunity #4:• Government guaranteed purchase

contract• Performance bond moon base 2015• Business development bank

financing• Title IX loans• (Now!) Scar for refueling: SM, LSAM

Documents

Summary Document ▪ May 16-18, 2006 ▪ NASA Ames Research Park ▪ Moffet Field, California