FOREMOST UAS RANGE BUSINESS PLAN:
GROWING ALBERTA’S AEROSPACE ECOSYSTEM
CANADA’S OPPORTUNITY FOR LEADERSHIP AND ECONOMIC
GROWTH IN UNMANNED AVIATION SYSTEMS
1
Executive Summary
The Foremost/Canadian Centre for Unmanned Vehicle Systems (CCUVS) is proposing
a unique opportunity for Canada to claim a global leadership position in the unmanned
aircraft systems (UAS) industry. The civil and commercial applications of UAS
technology are poised for tremendous growth and there is a growing need for system
development and training facilities that can accommodate Beyond Visual Line of Sight
(BVLOS) flight.
In July 2014, CCUVS received the necessary approvals from NAV CANADA and
Transport Canada to manage 700 square nautical miles (2,400 square kilometres) of
restricted airspace near the Village of Foremost, Alberta. The airspace was published in
the Canada Flight Supplement effective November 13, 2014 and provides CCUVS/
Foremost with the BVLOS capabilities that so many UAS companies require.
The Foremost UAS Range has many of the necessary requirements to be a unique
facility for UAS companies to train and develop this technology. With a relatively small
investment in facilities and ramp-up costs, Foremost would leapfrog ahead of other
available training options to become a world-class facility with an unmatched
combination of location, geography, topography, weather, size, facilities, and restricted
airspace for BVLOS flight.
The UAS industry is evolving quickly, so Foremost has a short window of opportunity.
There are currently companies expressing interest in flying their UAS at Foremost and
they are searching for alternatives. There are clear first-mover advantages if
CCUVS/Foremost is able to address its current weaknesses (facilities and investments
in ramp-up) in a timely manner. The industry is not standing still and Foremost/CCUVS
is positioned to champion Canada’s leadership in UAS training, development and
research with a facility that can be marketed to the world.
Unmanned Aircraft Systems
An unmanned aircraft system (UAS) is comprised of an unmanned aircraft vehicle
(UAV), a control system such as a ground control station (GCS), a communications link
(specialized data transceivers), and other specialized equipment (usually sensors). An
unmanned aircraft vehicle (UAV) is an aircraft without a human pilot on board. Its flight
is controlled remotely by a pilot on the ground utilizing a ground control station and
controlled internally by an onboard autonomous control system (autopilot). (The term
2
“remotely piloted aircraft system” (RPAS) is also sometimes used in lieu of unmanned
aircraft systems.)
Sample of Unmanned Aircraft System for Pipeline Inspection:
The preponderance of UAS usage to date has been in defence applications. Although
historically some UAS were used in military roles prior to the turn of the century, the
greatest usage of UAS has occurred since that time as the technology has advanced
and as the number of manufacturers has increased markedly. Globally, there are in
excess of 100 manufacturers of UAS. While new systems and manufacturers are
appearing in the marketplace routinely and frequently at this point in time, many of the
existing manufacturers have produced systems for more than a decade and have
thousands or tens of thousands of successful flight hours to their credit.
Civil and commercial applications of UAS have emerged, and the number and diversity
of these applications are increasing each year as the technology advances further and
as the benefits of unmanned systems are able to be realized. Examples of civil and
commercial applications of UAS include search and rescue, forest fire monitoring,
pipeline inspection, environmental monitoring, and a variety of surveillance activities
such as border surveillance.
3
UAS can be categorized into a broad range of classes: micro, mini, small, MALE
(medium altitude long endurance), and HALE (high altitude long endurance).
Micro UAVs are tiny and carry no appreciable payload. Mini UAVs are the size of hobby
aircraft and might carry a basic, lightweight video camera as a payload and would
operate for minutes, often under electric power. Small UAVs have a larger wingspan (as
large as 5 meters or more), operate for hours at a time, and carry a payload up to 10
kilograms or more. MALE UAVs typically operate at higher altitudes and, as the name
suggests, at extended ranges up to 100’s of kilometers while carrying significant
payloads of 250 kilograms or more. Not surprisingly, HALE UAVs are designed to fly
higher and longer than MALE UAVs.
UAS CLASSIFICATION
Range
(km)
Altitude
(m)
Endurance
(hrs)
MTOW
(kg)
Payload
(kg)
Micro
<10
250
1
<1
-
Mini
<10
150-300
<2
<5
0.5
Small
10-30
3000
2-4
<30
5
MALE
>500
15000
24-48
1500
250
HALE
>500
50000
24-48
4500-10000
1000+
Category
This particular taxonomy is not intended to be exact in terms of categorization of UAS,
nor is it accepted by all. It is presented here merely to indicate the wide range of
available systems each of which have advantages and disadvantages compared to one
another and when evaluated against differing requirements and applications.
4
Examples:
Micro UAV
Small UAV
Mini UAV
MALE UAV
HALE UAV
5
A 2013 study from the Association for Unmanned Vehicle Systems International
(AUVSI) has quantified the huge potential economic impact that can be expected from
integrating UAS into the United States National Airspace System. Based on their
methodology, AUVSI expects a $13.6 billion economic impact in the first 3 years after
integration and $82.1B over the first 10 years. They predict the largest opportunity for
the US is in agriculture (80%), followed by public safety (10%) and miscellaneous other
applications (10%). AUVSI estimates that 100,000 new jobs will be created in the US in
the first 10 years after integration.
The opportunity in Canada may be larger than the US opportunity relative to the size of
the Canadian economy. In addition to a significant agricultural industry, Canada also
has extensive resource based industries including oil & gas with its related infrastructure
spread out over a vast land mass.
Within Canada, Alberta is particularly well positioned to grow and expand the UAS
industry. In addition to being home to the Canadian Centre for Unmanned Vehicle
Systems, DRDC-Suffield, and large resource-based industries (including oil & gas,
agriculture, and forestry), Alberta Venture magazine lists the following facts in its
September 2013 issue:








Alberta is home to more than 70 companies, military organizations, and
educational institutions working on research and development of UAVs
Alberta has more than 200 airports, heliports, and aerodromes
40 per cent of production in the aerospace industry is destined for export markets
25 per cent of Canada’s geomatics and navigation firms are in Alberta
170 aerospace and aviation companies are based in Alberta
12 Alberta firms in the defence electronics niche produce $264 million worth of
products each year
Space-related products account for $200 million in revenue to the industry each
year
The Natural Sciences and Engineering Research Council of Canada distributes
almost 50 per cent of its funding for space-science study to Alberta universities.
Background on CCUVS
The Canadian Centre for Unmanned Vehicles (CCUVS) was incorporated in April 2007
with a broad mandate related to growing the Canadian unmanned vehicle systems
(UVS) sector with particular emphasis on unmanned aircraft systems (UAS). The start6
up and initial years of operation were largely funded through a 3 year / $3 million grant
from the Rural Alberta Development Fund (RADF). In addition, a grant from Western
Economic Diversification Canada (WD) provided the $900,000 to purchase a Robonic
MC2555LLR UAS launcher which remains a core asset and good revenue generator of
CCUVS.
Much research and analysis was conducted in the lead-up to the establishment of
CCUVS. In late 2004, Aviation Alberta commissioned a study to ascertain the potential
for a national centre. The paper was presented in March 2005 with a validation of the
need and interest in moving forward. The CCUVS Business Case was commissioned
by Aviation Alberta with a follow-up addendum in August 2006. A more in depth
CCUVS Business Implementation Plan was also produced in June 2007.
On August 31, 2006, CCUVS was formally opened by Medicine Hat Mayor Garth
Vallely. Much work was accomplished in those early days with significant contributions
from the Economic Development Alliance of Southeast Alberta. After incorporation in
April 2007, the first CCUVS board meeting was held in June and the RADF funds began
to flow in November. By early 2008, a business case for the launcher was completed
and a final agreement was reached with WD for funding.
Growing Pains
The original mandate for CCUVS was very broad and touched on many areas directly
and indirectly relevant to the UAS sector including: research, technology, standards,
training, marketing, test & evaluation, and sector development.
CCUVS grew quickly over the next couple of years. The activity related to development
of UAS standards grew significantly, fully supported by the Board and other
stakeholders.
Based on communication and direction from Transport Canada, CCUVS put
considerable effort over a period of several years toward establishing itself as the
authorized third party regulator, on behalf of Transport Canada, for UAS in Canada.
CCUVS came to be the equivalent of what Transport Canada already had in place for
regulating business aircraft in Canada through the Canadian Business Aviation
Association (CBAA), also a private, not-for-profit, third party organization. However, in
the course of establishing CCUVS as a regulatory entity, in late 2010 to early 2011,
problems arose between Transport Canada and CBAA to the extent that Transport
Canada stopped using CBAA altogether.
7
Path to Sustainability
In 2011, an organizational review was undertaken by the CCUVS Board of Directors.
The direction from the Board was to reduce the scope and number of activities, refocus
on those activities that would lead to sustainability, and rebuild the organization in this
new environment.
From 2011 through 2014, CCUVS has had one full-time Chief Operating Officer and a
part-time Bookkeeper. Additional needs were often supplemented by external
consultants engaged on an as-needed basis.
Due to the radically reduced resources, CCUVS focused almost exclusively on those
activities that can be done on a cost-recovery basis including consulting, training, writing
Special Fight Operating Certificate (SFOC) submissions, and UAS launcher rentals.
In recognition of magnitude of the Foremost UAS Range opportunity, the CCUVS Board
of Directors determined that 2014 was a critical year to ramp-up its management and
business development capacity. In 2014, Roger Haessel joined CCUVS as the Chief
Executive Officer with a mandate to explore all opportunities to successfully develop the
Foremost UAS Range.
UAS Sector Growth – Civil and Commercial Applications
Most of the key advancements in UAS technology have come out of military-oriented
research and development activities. These developments have accelerated over the
last 10 years with their extensive use in wars in Afghanistan and Iraq and various other
surveillance operations. This technology is now working its way into commercial and
civil applications.
The economic potential for commercial and civil UVS applications is tremendous,
especially for a large and sparsely populated country such as Canada with significant
resource industries and their related challenges. Among the biggest opportunities are:

Environmental monitoring with particular emphasis on oil & gas - Unmanned
flight over long stretches of oil & gas pipelines using high-tech sensors to monitor
for leaks. Benefits of UAS over current methodologies include:
o More frequent monitoring
o Faster remediation efforts in case of problems
8
o Improved cost effectiveness due to increased productivity over traditional
manual monitoring
o Safer than using manned flight especially at lower altitude flight in more
remote areas
o Reduced environmental footprint
o See the graphic entitled “Sample of Unmanned Aircraft System for
Pipeline Inspection” earlier in this document for a visual representation of
how UAS might work in this capacity

Infrastructure monitoring – UAS can be used to monitor infrastructure such as
power lines and allow earlier detection and mitigation of potential problems

Forestry management – Unmanned flight can improve stewardship over
Canada’s vast forest resources, including:
o Survey forest health and monitor/manage disease including Mountain Pine
Beetle
o Use sensors to detect moisture content and assess risks from forest fires
and pestilence
o Evaluate and fight forest fires with less risk to human life

Agriculture – UAS can increase the efficiency of Canada’s agricultural industries,
through various techniques:
o Remote sensing to scan plants for health issues and detect disease
outbreaks
o Recording plant growth rates and estimating yields
o More precise detection of crop moisture content would enable farmers to
optimize irrigation and potentially reduce water usage
o Precision spraying of crops using UAS could reduce the use of pesticides
and optimize the application of nutrients and, thereby increase yields,
reduce costs and reduce environmental impact

Wildlife Management – UAS can be used to survey animal populations and
migration patterns

Public Safety – UAS can provide assistance to firefighters, emergency medical
service providers and law enforcement officers.
9
Window of Opportunity
Canada and CCUVS are ahead of the US which has fallen behind its own timelines to
develop the civil and commercial applications related to UAS. The FAA was directed to
establish 6 UAS test/training ranges by the end of 2012. That deadline was missed
when the FAA notified the US government in November 2012 that they needed more
time. Entering 2014, the FAA finally announced the 6 locations (University of Alaska,
State of Nevada, New York’s Griffiss International Airport, North Dakota Department of
Commerce, Texas A&M University at Corpus Christi, and Virginia Tech).
Canada and Alberta have an opportunity to provide leadership in the UAS sector. In
2014, CCUVS in partnership with Foremost, AB received the necessary approvals
through NAV CANADA and Transport Canada to manage 700 square nautical miles
(2,400 square kilometers) of restricted airspace in Southeast Alberta. This airspace is
the first of its kind in North America and is specifically designated for flying UAS for the
purposes of training, research and development for civil and commercial applications.
This airspace gives Canada a first mover advantage for both domestic and international
UAS development.
Foremost UAS Range
The Village of Foremost, Alberta is a small community located 102 kilometres west of
Medicine Hat and 110 kilometres east of Lethbridge. Foremost is primarily an
agricultural community with current population estimated at 500. The Foremost
Airport/Aerodrome is located 2.6 kilometres west of the Village.
The Foremost Aerodrome was identified by CCUVS in 2008 as a potential site for a
development and training areas for the sole purpose of operating UAS for commercial
and civil purposes. This type of facility was needed to offset the difficulty civil UAS
operators were experiencing in gaining access to military training ranges and airspace.
Since 2008, three SFOC’s for UAS have been issued by Transport Canada for within
line of sight operation at Foremost, each of which was facilitated by CCUVS.
At the request of Transport Canada in April 2012, based on a submission by CCUVS,
NAV Canada began developing an Airspace Assessment (AA) to create an area of
restricted airspace for flying UAS Beyond Visual Line of Sight. Upon completion of the
assessment, NAV CANADA recommended creation of the airspace and Transport
Canada concurred with those recommendations. On November 13, 2014 the new
Restricted Airspace was published in the Canada Flight Supplement.
10
The proposed Foremost UAS Range has a bright future and strong demand. With
adequate support, Foremost could become a globally unique asset for UAS training,
development and research. Among its many advantages:






Vast unfettered airspace
Large enough for Beyond Visual Line of Sight (BVLOS) flight
Flat short grass topography making it easier to retrieve UAS after flight
Extended lines of sight for easier monitoring
Low population density keeps risks to a minimum
Good weather increases number of days available for training
Foremost is a fairly remote location and that is considered a positive attribute for UAS
training since there are fewer obstacles to clean flight lines. Despite the relative
remoteness of Foremost, Southeast Alberta has significant supports available to UAS
companies working in the area. Medicine Hat has a population of over 61,000 residents
and all the amenities of a regional service hub. In Southwest Alberta and equidistant,
Lethbridge has a population of nearly 100,000 people including a University and
College.
The Foremost UAS Range operates in a region served by APEX, Southeast Alberta’s
Regional Innovation Network. APEX is a partnership between Medicine Hat College,
Economic Development Alliance of Southeast Alberta, Government of Alberta, and
Community Futures Entre-Corp. Together this network is able to provide companies
with training, relocation support, community information, access to capital, business
planning and other forms of assistance.
In early 2013, APEX and its partners were able to support Medicine Hat College to
acquire high-end advanced manufacturing equipment including a 3D printer and laser
scanner. This equipment is available for business use and would be readily accessible
by UAS companies operating in the area. This technology could provide incredible
benefits as UAS parts need to be redesigned or replaced.
Updated Vision and Goals of CCUVS and the Foremost Initiative
The Foremost UAS Range initiative is transformational not only to the Village of
Foremost but also to CCUVS. With the undertaking of such a significant initiative as the
Foremost UAS Range, it is appropriate for CCUVS to reconsider its vision and mission.
11
Future Vision: Canada is the internationally recognized leader in the training,
development, and commercialization of unmanned vehicle systems for commercial and
civil applications.
Future Mission: Foremost/CCUVS will enable Canadian and international companies to
accelerate the development and commercialization of new UAS technologies:
 Provide non-military access to globally unique UAS training and development
facilities
 Support and develop Beyond Visual Line of Sight (BVLOS) UAS flight
 Leverage Foremost to prove-out UAS technologies for civil and commercial
applications including environmental monitoring
Strategic Objectives: CCUVS will transfer its assets and brand to the Village of
Foremost to ensure that Canada becomes the ‘go to’ destination for civil and
commercial UAS training, research and development. Foremost/CCUVS will:
 Work with Transport Canada/NAV CANADA to manage the restricted airspace
near Foremost, AB
 Engage with industrial sectors that could benefit from embracing UAS technology
in their operations
 Create a compelling value proposition for industry such that the Foremost UAS
Range becomes sustainable over time
 Partner with Tecterra Geomatics, ACAMP and other key players in the Alberta
technology and entrepreneurial ecosystem to leverage each others’ capabilities
 Partner with Defence Research & Development Canada (DRDC-Suffield) to
ensure that relevant and appropriate scientific research & development is
available for technology transfer and commercialization
 To the extent that they are willing to engage with a western Canadian partner,
work to support the Unmanned Aircraft System Center of Excellence out of Alma,
Quebec in their UVS testing needs due to lack of access to adequate airspace or
limitations due to smaller size, more challenging geography, poorer climate, etc.
Primary Goal: Going forward, the primary goal of Foremost/CCUVS is to develop
Foremost in a way that leverages the unique assets and attributes in Southeastern
Alberta to make Canada the world's leading country in the research, development and
commercialization of UAS technology for civil and commercial applications.
Supporting Goals: Supporting goals of Foremost/CCUVS initiative include:
 Develop the Foremost UAS Range of approximately 700 square nautical miles
based out of the airport in Foremost, Alberta
12





Support companies to research, develop and commercialize new technologies
related to UAS
Provide specialized UAS support services including operations, logistics, launch,
intellectual property, regulatory approvals, and advisory services
Facilitate the introduction of new UAS related products and applications to the
market
Leverage the unique attributes in the region around Foremost, Alberta including:
o Vast unfettered airspace
o Flat short grass topography - extended lines of sight
o Highly suitable weather (over 300 VFR days per year)
o Benign EMI environment
Maintain financial sustainability over longer-term
Investment Requirement
Foremost has many of the natural requirements for a world class UAS training facility,
but it does require some investment to attract clients. Many of the emerging
applications for agriculture or oil and gas will be required to operate BVLOS to be
effective. In general, this involves larger UAS up to and including MALE (Medium
Altitude Long Endurance) sized UAS. The restricted airspace at Foremost will be
sufficiently large for BVLOS testing and training. However, the supporting infrastructure
is currently inadequate for operations of this type. In particular, there is a need for some
basic infrastructure such as a building that includes a combined hangar and a modest
office/lab complex.
The required building and related infrastructure is critical to the Foremost initiative. Due
to the highly technical nature of the UAS industry, modern heated and air-conditioned
buildings are generally required to attract clientele and to accommodate their needs.
Without developing this additional infrastructure to complement the available airspace, it
would be unreasonable to assume that companies with global presence and access
would consider Foremost as a training and development option.
Numerous large OEM aerospace companies have indicated an interest in flying at the
Foremost UAS Range including Lockheed Martin Canada, General Atomics, and SelexGalileo among others. These larger companies are interested in flying at Foremost, in
part, because of its proximity to them in western North America. They deem the size of
the airspace sufficient for test and training flights even for UAS as large as the General
Atomics Predator (i.e. figure 8 laps within the Foremost restricted airspace at Predator
cruising speed will be approximately 1 hour in duration). Due to the nature of their
13
business, these large OEM companies have indicated that they would require a secure
hangar in order to operate at the Foremost UAS Range.
Comparative Analysis for a Unique Opportunity
An analysis of Foremost relative to competing alternatives shows that it compares very
favorably in most key aspects. The following chart shows how the Foremost range
compares to other non-military UAS Training & Development ranges around the world.
Foremost is listed twice to show the potential competitive advantage that could be
obtained with some minimal investment.
“Foremost – 2014”: The foremost Aerodrome already has been used by a number of
companies for UAS training despite facility shortcomings. Currently, the big weakness
in Foremost is infrastructure including lack of a dedicated hanger and lab/office space.
“Foremost – 2015”: With a relatively small investment in facilities and ramp-up,
Foremost could leapfrog the global competition.
Source: Subject matter experts.
14
Strengths, Weaknesses, Opportunities, and Threats
A SWOT analysis reveals that Foremost has many strengths and great opportunities.
The key weakness is inadequate infrastructure and that can be addressed with a onetime investment.
Business Model
NOTE:
CCUVS is currently in the process of filing necessary documents to transfer the “user
agency” to the Village of Foremost.
The Foremost/CCUVS business model will focus on various revenue sources. The
application for restricted airspace at Foremost stipulates that CCUVS is the responsible
authority (and thereby, the sole entity) for requests to invoke the Foremost restricted
15
airspace (a condition imposed by Transport Canada). TC further stipulated that CCUVS
cannot charge fees for utilization of airspace. However, the primary revenue driver will
be payments from companies that wish to lease the aerodrome and related
infrastructure (and, thereby, use of the related airspace) for their UAS testing, training,
research & development activities. For companies engaged in testing civil and
commercial applications, there are few non-military substitutes to the Foremost, Alberta
UAS range. Indeed, there are currently no substitutes in North America that offer
Foremost’s critical attributes of size, weather, and topography.
Another revenue source is renting the launcher/catapult to companies for UAS launch.
This will be a Foremost/CCUVS-owned asset that has demand from around the world.
It currently commands approximately $1600/day for rent but is under-utilized. With the
launch of the Foremost UAS Range, demand is likely to increase at least for certain
types of large fixed-wing UAS.
Another revenue sources will include flight operations support (i.e. Safety Officer
Services) and regulatory assistance (i.e. SFOC preparation for BVLOS flights).
Additional potential areas for revenue include product development and
commercialization advisory services, intellectual property assistance, etc.
The business model and long-term sustainability depend greatly on the number of
companies that want to contract to fly at Foremost. The number of companies and their
utilization rates (i.e. number of days at Foremost and number of flight days) will be the
largest revenue drivers.
As companies hear about the Foremost initiative and its compelling attributes, they have
been calling for more information. In addition, CCUVS has participated on trade
missions to market the Range.
Risks
Speed - The biggest risk is that Canada does not move quickly to invest in Foremost
and develop a first-mover advantage. The United States is struggling to integrate UAS
into their National Air Space. It is simply a matter of time until the US has their
regulations in place and begins to move quickly upon this opportunity. In two years, this
opportunity will likely bypass Canada.
Politics - The recent announcement of funding for the Unmanned Aircraft Systems
Centre of Excellence in Alma, QC has the potential to fragment the Canadian market.
16
Alma may have regional relevance but it does not have national/global potential. Alma
cannot match the potential of Southeastern Alberta simply due to airspace limitations,
geography, topography, and climate. The Foremost range could become a national
asset versus a regional one. [Note: As of the writing of this document, Alma has no
permanent airspace. All flights have been coordinated in military airspace.]
Infrastructure – In order to attract the leading UAS companies to Foremost, there must
be adequate infrastructure including lab/office space, power, water, secure storage for
UAS, ground control station with radar, road access, adequate lighting, etc.
Discussions will be held to try to accommodate this when the time comes.
Usage – The sustainability of the CCUVS/Foremost business model is based on various
assumptions for both revenue and expense. Given that there are a certain number of
fixed expenses, it is important that Foremost has a strong utilization rate. Given the
current lack of training ranges for BVLOS UAS, the assumptions are conservative
provided first-mover advantages are not lost. It is important that this initiative is seen as
the “Foremost” destination for UAS training and development.
Underinvestment – It is important to emphasize that all other UAS flight range and
development centres in western democracies have been recipients of government
funding. For a country that could benefit the most from UAS activity, Canada lags far
behind dozens of other countries in this emerging technology frontier in terms of
government investment. Canadian Governments need to provide not only adequate
investment but also smart investment; otherwise UAS could become a lost opportunity
for Canada.
Conclusion
Foremost/CCUVS, at its current level of operations, provides valuable services to the
Canadian UAS industry. Limited levels of visual line of sight UAS training and
development currently takes place at Foremost using SFOCs. The status quo could be
maintained for a period of time; however, this will be unacceptable over the medium to
longer terms. The civil and commercial opportunities for UAS are considerable and
without further investment in the Foremost/CCUVS UAS Range, a unique opportunity
will pass by Canada and Canadian industry.
Now is the time to invest in the Foremost/CCUVS initiative. Following an initial
investment for facilities, infrastructure and ramp-up expenses, Foremost will become
financially sustainable over time.
17
Foremost has many natural gifts but requires an investment commitment from Canada
and Alberta. The economic opportunity is big and the time to act is now. Canada has
an opportunity to assume a leadership position in the early stages of a growth industry
but this opportunity will not wait for long.
18