Developing products

Space quest
Nautel is an international
exporter of radio
transmitters and a
leader in digital
technology. What’s next?
Developing products
that could revolutionize
space travel
by CAROL MOREIRA
phototography by SANDOR FIZLI
H
ackett’s Cove is a tiny fishing village on the South Shore of Nova
Scotia. It’s a quiet spot; the only
views are of the tree-studded coastline and the little islands that border this part of the Atlantic
Ocean. The only main road leads to the famous
but remote and scenic attraction of Peggy’s Cove.
So it’s no surprise to learn that when Denis
Colville launched his engineering company,
Nautel Ltd., almost 40 years ago, he figured if
business didn’t work out, he could sell the premises as an oceanside home.
Fortunately things did work out, and today
Nautel (www.nautel.com) is a well-known producer
of radio transmitters and is now on the cusp of
breaking into the space industry. Nautel staff is
buzzing after an unexpected approach just over
a year and a half ago by Texas–based Ad Astra
Rocket, a company that is developing plasma
rocket-propulsion systems that are expected to
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OPEN TO THE WORLD, AUTUMN 2007
John Whyte (left) and Tim Hardy at Nautel’s
seaside location in Hackett’s Cove.
OPEN TO THE WORLD, AUTUMN 2007
13
revolutionize space travel. Ad Astra approached Nautel
after learning about its expertise in radio-frequency amplification. Nautel exports radio transmitters to 170 countries
around the world, using the latest digital technology and
producing transmitters that are compatible with all of the
digital-transmission methods being used internationally.
Digital radio is currently poised to become the greatest
revolution in radio broadcasting since the introduction of
The technology will
mean that spacecraft
and satellites will be
much more mobile
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OPEN TO THE WORLD, AUTUMN 2007
FM. The digital signal delivers high-quality audio and
allows up to three stations to be transmitted on one signal.
It also provides great efficiency; a digital broadcaster can
serve a broadcast area using only 1/100th the power
required with analog (AM and FM) broadcasting.
With this in mind, Ad Astra asked Nautel to create and
develop radio-frequency amplifiers for plasma generation
and acceleration in the propulsion systems of electric
spacecraft. Nautel staff members have been only too
happy to take on the challenge. “This technology represents a quantum step forward in spacecraft propulsion.
We’re doing world-class work. It is very exciting to be
involved,” says Tim Hardy, Nautel’s head of research.
“We’ve never developed a product for space before.
There’s a lot of new learning. It’s an important step forward in a core technology we have. We’re branching out
and applying technology we understand in new ways.”
John Whyte, Nautel’s marketing manager, describes the
project with Ad Astra as Nautel’s “Honda racing program”
because of the way it is pushing the company’s engineering
limits. Seven of the company’s 34 research and development staff members are part of the work that involves converting power from solar cells to radio-frequency power,
which are then relayed to an antenna that heats plasma.
Plasmas are electrically charged fluids that can be
heated to extreme temperatures by radio waves and are
controlled and guided by strong magnetic fields. The
temperature of a plasma starts at about 10,000 centigrade,
but present-day laboratory plasmas can be 1,000 times
hotter. These temperatures are comparable to those in the
interior of the sun. “No known material could survive
contact with such plasma, but a magnetic channel can be
built that guides the plasma so that it never has to touch
material walls,” says Hardy. “Ad Astra uses extremely
intense magnetic fields, generated by superconducting
magnets, to create a kind of magnetic pipe or nozzle.”
Whyte compared the technology to building a
microwave oven to cook plasma in space. The device has
to be small, lightweight, and hard enough to withstand
space travel. When developed, the technology will mean
that spacecraft and satellites will be much more mobile
because propulsion will be far greater. For example, a mission to Mars would currently take about a year, but the
new technology would allow it to be done in one month.
Hardy says the cost of keeping the space station in orbit
could be greatly reduced because the amount of fuel
required could be cut from around 7,000 kilograms a year
to around 120 kilograms, with fuel costing $20,000 per
kilogram. That’s a savings of 98%, or a potential savings of
$1 billion over an eight-year period. “Electric rockets are
much more fuel efficient because they use electricity
instead of chemical combustion to produce higher-velocity
Having so many long-term
employees helps with quality control
exhaust gases,” Hardy explains. Adds Whyte: “It’s pretty
crude the way rockets work today. It’s just a mass of chemicals burning. Plasma will revolutionize space travel. Plasma
rockets have exhaust velocities way above those achievable
by chemicals, so fuel consumption is very low.”
ONE-STOP SHOPPING
Whyte says that Nautel is well placed to work on Ad
Astra’s specialized project because Nautel does almost
everything in-house, so the company’s standards of quality
control are first rate. “We’re very innovative with production,” says Whyte. “Lots of companies outsource aspects of
production, but we do almost all of it in-house. It gives us
control over quality and the ability to tackle very specialized development.”
The original building that Colville thought he might
one day sell is now being used to house administration,
marketing, and sales staff. The former residence is connected by a tunnel to a large green building, complete with
an annex that houses a fully integrated, ISO 9001:2000–
certified manufacturing facility. “Our staff of 150 works
here on everything from R&D, metal stamping, painting,
machining, circuit-board assembly, testing, and packing,”
says Whyte. “It’s all under our roof.”
The wooden boxes that transport Nautel’s products are
also made in this complex of buildings. Even the copper
coils inside the transmitters are made here; only the little
fans nestling nearby them are not. There’s a strong sense of
community as employees work on all of the different areas.
On one floor, women are moulding piles of delicate,
spaghetti-like, co-axle wires for use in circuit boards, while
nearby men work on casting many types of metal casings.
Having so many long-term employees aids quality control too; until staff recently started to retire, workers in
production had an accumulated 500 years of service.
Nautel is so much a part of the local scene that it even has
its own radio station for research use that transmits to the
area. There’s also a fully operational Nautel subsidiary,
staffed by 25 employees, in Maine. “By using two facilities, we increase our scheduling flexibility,” says Whyte,
OPEN TO THE WORLD, AUTUMN 2007
15
“At Nautel we have a strong culture of
self-funding our growth” — Tim Hardy, head of research
“guaranteeing on-time shipments to customers.”
The partnership with Ad Astra is producing palpable
excitement at Nautel because it’s allowing the company to
diversify its core business, which is already growing well.
Nautel’s revenue is currently in the $20-million to $30million range. Over the past three years, Nautel’s revenues
have grown by a total of 50%.
The company produces about 30 products, including
medium-wave AM and FM radio broadcast transmitters
(analog and digital); navigational radio beacons;
Differential Global Positioning System (DGPS) transmitters; medium-frequency telegraph and NAVTEX transmitters; and amplifiers for dielectric high-frequency heating
applications. The room-sized NA 300 kilowatt AM transmitter is the biggest transmitter it makes. “We’re recognizing we have a relatively narrow market focus,” says
Hardy. “The broadcast-radio business is a big part of our
revenue, and that makes us a bit dependent on that particular industry. This is a way of diversifying. It’s hard for
any business to jump into a new field, but we’re pushing
back the boundaries.”
The space-linked R&D work has received $1.8 million
from the Atlantic Canada Opportunities Agency’s (ACOA)
Atlantic Innovation Fund. Hardy notes that repayment of
the loan was contingent on making money from the new
technology, which he is confident that Nautel will ultimately do. At the moment, Nautel is in the proof-of-concept
phase (building a model with mainstream parts to prove
their engineers can do the work). Nautel and Ad Astra hope
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OPEN TO THE WORLD, AUTUMN 2007
that by 2011, the new plasma-propulsion system will be
tested on the International Space Station.
“It’s higher risk and potentially a higher return on
investment, although it will be a few years before we see
any revenue,” says Hardy. “Right now we’re working on
the performance matrix, which requires small size, high
efficiency. When we’ve learned to do this for the customer, we can use the technology in other, more mainstream businesses, such as our core broadcast business.”
Nautel hopes to eventually make money from other
spin-offs; there are many plasma applications used in the
industry, such as semi-conductor processing, waste disposal, and coatings on glass. “At Nautel we have a strong
culture of self-funding our growth. It’s rare for us to go
out and look for funding,” says Hardy, of the loan from
ACOA. “Nautel understands the importance of R&D.
Annually, about 10% of our revenue goes toward R&D.
The ACOA funding considerably reduces the risk; it would
be difficult for us to entirely fund a major project like this
at this level of risk.”
Franklin Chang Diaz, Ad Astra’s chair and CEO, is
pleased to have forged the partnership. “Nautel’s compact
and lightweight high-power RF technology is critical to a
successful space application,” he says. “In addition, the
low-voltage requirements of these RF transmitters make
them compatible with the voltage output of space-borne
solar-power arrays, eliminating costly and bulky power
transformers and other intermediate power-conditioning
equipment.” ■
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