ESA Phi-Lab Sweden: Edge AI in space

The call for proposals aims to develop the space sector by promoting the development of AI and edge learning technologies for the space sector.

The call for proposals is being carried out within the framework of ESA Phi-Lab Sweden, part of ESA Phi-Lab NET, a strategic programme for the commercialization of space technology innovations.

The duration of the projects should be 12 to 24 months. Each project can apply for between 2.5 and 5 million SEK in funding. The total preliminary budget of the call is 10 million SEK.

project is funded by Vinnova and ESA, The European Space Agency, with half each. Vinnova only funds Swedish partners. ESA funds Swedish partners and also has the possibility to fund project partners from another ESA member state.

Proposal must be sent to both Vinnova and ESA Phi Lab Sweden. These two applications must be identical and contain the same attachments.

ESA Phi-Lab Swedens's mission

ESA Phi-Lab Swedens's mission is to strengthen Sweden's and Europe's competitiveness in the global space sector by promoting the development of AI and edge learning technologies. In the coming years, ESA Phi-Lab Sweden will demonstrate how these technologies can be applied in the space sector and other industries.

The European Union's space policy is currently facing several challenges and opportunities, paving the way for initiatives like ESA Phi-LabNET. One of the most important needs that has been identified is that Europe needs to become more independent in terms of access to space. The global space economy is growing rapidly, driven by competitive private actors and an increasing number of space launches and satellites in operation.

Space is becoming increasingly scarce and contested. Today's geopolitical tensions clearly demonstrate the need for strategic autonomy, not only in terms of access to space, but also in several other technological areas linked to space activities, such as infrastructure, data collection and processing, and the development of space products and services. Although European countries have world-class space infrastructure, investment is at a lower level than that of global competitors and there is a lack of a unified legal framework within the EU.

AI is playing an increasingly important role in the space domain, for example in manufacturing, in-orbit operations, data collection and data analysis. It is therefore crucial to support efforts that help mature these technologies and pave the way for a successful establishment in the space market.

Against this background, and as part of ESA Phi-LabNET-initiativet, ESA Phi-Lab Sweden, run by RISE and co-funded by ESA and Vinnova, offers funding opportunities for project using AI and edge learning technologies in space applications. The initiative also aims to adapt space-based technologies for use in other sectors, while taking advantage of the EU's strategic investments and regulatory developments to promote innovation and strengthen competitiveness.

Thematic focus areas - AI, Edge, Hardware and Sustainability

AI and Edge Learning are revolutionizing Earth observation, remote sensing, and the broader space sector by enabling real-time data processing, improving image analysis, and integrating data from multiple sources. These technologies significantly improve object detection and tracking, climate monitoring, and data analytics, and enable AI models to process data directly on satellites, reducing the need for extensive data transfer.

Hardware development is critical for AI at the edge. Selecting and building intelligent edge hardware that can run AI models on local hardware, such as edge GPUs, TPUs, and specialized silicon platforms, enables fast and efficient computing directly on devices, improving the performance and reliability of AI applications in space.

To ensure sustainability, it is important to focus on energy-efficient co-development of hardware and software. This means designing AI algorithms and systems that use as little energy as possible and limit carbon emissions. Strategies such as energy-conscious task offloading, the use of renewable energy, and efficient resource use can significantly reduce Edge AI-system's environmental impact.

Innovations based on AI and Edge Learning have the potential to make the space sector more efficient and sustainable.

Project proposals should be groundbreaking, have great potential to impact society and the economy, and be based on solid research-driven knowledge. They should describe market demand and/or how research is driving future establishment of the proposed solution.

The idea should have a clear connection to the space area, for example through:

• Exploitation of space technology, application of knowledge from the space sector or use of space systems and space-based services in areas other than space (so-called spin-offs);
• Provision of products or services to the space sector, across the entire value chain (from individual components to completely new space systems, including facilities and services), as well as activities linked to the entire development chain (from concept phase to operation), possibly using technology originally developed outside the space sector, so-called spin-in.

Project proposals should clearly describe how the project is relevant to Edge AI in space, the thematic focus areas specified in this call for proposals, and contributes to sustainable growth.

Contribute to a sustainable system transformation

ESA Phi-Lab Sweden is committed to promoting sustainable development in the space sector in line with the global goals for sustainable development (Agenda 2030). The project application should discuss the societal and environmental impacts of the proposal. The environmental impacts of developing, using and maintaining AI systems can be significant and may in some cases outweigh the benefits.

In addition, AI solutions for space applications can facilitate disaster response through improved Earth observation, promote climate monitoring and environmental protection, foster innovation across industries, and promote global cooperation and security. Solutions can also drive economic growth by creating new markets and jobs, while ensuring sustainable practices and resource management.

We encourage project that strive to achieve the global goals with a particular focus on gender equality and climate change.

Given ESA Phi-Lab Swedens's focus on AI and edge learning, projects should conduct an early assessment of the sustainability of a given AI solution. This includes:

• Consider energy consumption during system development and favor models with lower complexity to reduce computational requirements.
• Evaluate greenhouse gas emissions from operations, with efforts to improve carbon efficiency and implement emission compensation strategies.
• Promote sustainable products and consumption patterns, reduce resource consumption and improve product quality and lifespan.

Regarding the spatial perspective in the AI project, it is particularly important to:

• Minimize waste, recycle materials and use renewable energy sources where possible.
• Ensuring that AI hardware designed for edge deployment remains energy efficient, including the use of specialized components such as hard processors and fault-tolerant designs.
• Investigate the possibility of recycling and reusing hardware, along with effective waste management scenarios to minimize environmental impact.

Agenda 2030 as a driver for innovation

Making scientific publications and results available

When results from research and innovation are made freely available, more people can contribute to solving societal challenges. This the call for proposals will help make results available to everyone. Therefore, all scientific publishing should be open access.

The call for proposals is aimed at consortia with at least two participants. Industry, business, academia, research institutes, public activities, authorities or economic associations can be part of the consortium. At least one company must be part of the consortium. All participating parties can be companies.

Project partners from an ESA member state other than Sweden must demonstrate that participation contributes to the Swedish innovation ecosystem.

Eftersom ESA Phi-Lab Sweden is run by RISE, so RISE or organizations that are part of RISE cannot apply in the call for proposals.

Please note that Vinnova and ESA have partly different rules for who can apply for funding. Read more about formal eligibility requirements in section 6.

We fund activities for research and innovation projects within the call's aim and objective as described in section 2.

The project, or activities in the project, must not be funded by other means, such as ESA's R&D activities, ESA Business Incubation, ESA Business Applications or the European Commission.

Examples of activities eligible for support:

• Investigate technical and structural conditions.
• Develop prototypes or demonstration versions of products and services. This may include pilot work, testing, and validation.
• Research and develop production methods.
• Plan and conduct studies and tests to validate an innovation.
• Investigate market conditions, for example, identifying customers, customer needs, potential partners and competitors.

What costs can Vinnova finance?

Vinnova's funding is covered by state aid rules. The rules govern what types of costs we can finance. These are called eligible costs.

In this the call for proposals these types of costs are eligible:

• Personnel costs: Salaries, social security contributions and other personnel costs.
• Equipment, land and buildings: Instruments, equipment and rent for premises other than regular business premises.
• Consulting and licensing costs: Consulting services, knowledge and patents purchased or licensed from an external party. Costs for consulting services from external parties may not exceed 20 percent of a project party's budget. We can accept a higher percentage than 20 percent in case of special needs. You must then justify the need for consulting services in proposal. This justification is taken into account in our assessment.
• Other direct costs: For example, materials, supplies and travel necessary to carry out the project.
• Indirect costs (overhead): Costs that are not incurred as a direct result of, but can be related to, the project, such as regular premises and cleaning. Indirect costs may not exceed 30 percent of personnel costs.
  Universities, university colleges, and certain research organizations and government agencies have higher maximum limits depending on the type of activities.

Support offer and additional costs that may be covered by ESA Phi-Lab Sweden

ESA Phi-Lab Sweden provides technical and research support for the project's activities.

The type of support that the projects need should be specified in proposal. A description of the support offer can be found in the project description template.

The offer includes:

• Research mentorship/technical support
• Business coaching
• Intellectual property law/legal advice
• Equipment and facilities
• Intellectual property Support

What eligibility requirements apply to costs we finance?

For a cost to be eligible, it must be necessary for the project's activities. Project costs must also be properly accounted for and reported separately from the organization's other costs. An organization may not claim that someone else's costs are its own.

Costs incurred in preparing and submitting the proposal will not be reimbursed.

For more detailed information about eligibility requirements, limitations and exceptions, please read the instructions for eligible costs.

The state aid rules govern how much of the costs Vinnova can finance. This is determined individually for each organization. We therefore distinguish between how much funding the project can receive, and how much funding each participant can receive.

Granted project are funded by both ESA and Vinnova. Vinnova's share is half. This section describes Vinnova's support rules and levels. ESA's support levels are described in brief.

How much funding can the project receive?

The support can amount to between 2.5 and 5 million SEK per project.

Vinnova finances the participation of the Swedish actors with a maximum of 2.5 million SEK per project. ESA finances the Swedish the actors, plus any project partners from an ESA member state other than Sweden, with a maximum of 2.5 million SEK per project.

How much funding can a participant receive?

The nature of the projects is expected to primarily meet the support criteria for industrial research. Depending on the nature of the projects regarding the project activities, funding may in some cases also be granted within the support criteria for experimental development and support of minor importance.

How much funding each participant can receive depends mainly on:

• what activities the party will carry out in the project
• party size and activities

Non- state aid is support for organisations that do not carry out economic activities. This means that they do not offer a service or product on a market. This usually includes universities and university colleges, research institutes and other organisations. In this call for proposals Vinnova can finance up to 100 percent of the costs of such an organisation, as long as their share of the project's total budget does not exceed 30%. The maximum contribution level for these non-commercial actors therefore depends on the composition and budget of the project consortium.

Industrial research can be simply described as seeking new knowledge through planned research or critical analysis to develop or significantly improve products, processes or services.

Experimental development can be simply described as combining, shaping and using existing knowledge to develop new or improved products, processes or services.

De minimis support is also called de minimis support. We can grant de minimis support, in accordance with the EU Commission Regulation (2023/2831) on de minimis support, for up to 100 percent of a project party's costs. An organization can receive a maximum of 300,000 euros over a three-year period in this form of support, regardless of the funder and project. This means that if the same organization has received de minimis support in other project from other funders in the past, it will affect how much support can be in this the call for proposals.

Submit a certificate of de minimis support when you submit proposal. This is required for us to be able to grant this support. Certificates of de minimis support can be found on this page.

How much of the costs can we finance?

Vinnova grants funding in accordance with Article 25 of the EU Commission's General Block Exemption Regulation (GBER). The size and type of activity of the organisation determine how large a proportion of the costs we can finance, i.e. the maximum level of support. See Funding grounds and levels of support for funding, and the table below for an overview.

In order for us to take a position on and assess your proposal, it must meet certain formal eligibility requirements. If the requirements are not met, proposal will be rejected immediately.

Eligibility requirements on organizational form of project parties

• All project partners must be legal entities. Natural persons or individual companies cannot participate as project partners.
• No participant is organizationally part of RISE
• The coordinating party must be a Swedish legal entity and conduct activities in Sweden. Other parties may be a legal entity established in another ESA Member State.

Eligibility requirements for the project

• The project may not begin before proposal has been approved and the research contract has been signed.
• Maximum project duration is 24 months

Eligibility requirements for proposal and parallel application

• Proposal must be written in English.
• Proposal must follow the instructions given in section 9.
• Proposal must contain all requested attachments.
• The same proposal must be submitted to Vinnova's e-service and to ESA Phi-Lab via e-mail. This is called a parallel application. Only applications that are identical to the parallel application, including attachments, will be assessed.

What do we assess?

In this call for proposals assessment is carried out according to criteria established by ESA Phi-Lab NET.

Your proposal will be assessed based on the following assessment criteria:

Research and technical development (30%)

• Relevance for the call for proposals
• Suitability of the technology for the application described
• Understanding and utilization of current knowledge (State of the Art) and the novelty value of the proposed solution
• Maturity and feasibility of the described application
• Relevance of the proposed R&D method
• How the solution contributes to sustainability

Commercial opportunities and potential socio-economic impact
(25%)

• Potential market segment
• Potential product/service
• Potential customers/users
• Value proposition
• Potential socio-economic impact (including sustainability)
• IPR strategy

Background and experience (25%)

• Project team composition
• Partnerships and support units
• Vision
• The project partners' competence, credibility and ability to implement the project
• The consortium's anchoring in Swedish industry within the chosen area.
• The ability of the project partners to disseminate, exploit, commercialize and further develop the results and knowledge generated in the project, both within their own organizations and outside the consortium
• How well the project group is composed in terms of gender. As well as how well power and influence are distributed between women and men in the project group
• That the project is not more dependent than necessary on consulting services from external actors

Implementation plan (20%)

• The relevance of the work to achieving the goals.
• Milestones/cost planning
• Work distribution structure
• Management of the research project
• The realism of the project plan in relation to the set objective, methods, activities and budget
• The participation and relevance of the specified project partners in the project's various work packages and activities
• How well the project design contributes to the exploitation and dissemination of the results, both within the own organizations and outside the consortium.
• How well risks are described and planned and managed in the project implementation plan
• How well gender equality has been integrated into the project plan

How do we assess?

The assessment is based on proposal submitted via Vinnova's e-service and to ESA Phi-Lab Sweden.

Applications that meet the formal requirements are evaluated against the assessment criteria by an assessment group. The evaluation of all received applications is handled locally by ESA Phi-Lab Sweden and Vinnova and follows common ESA Phi-Lab-förfaranden.

Once the closing date has passed, we will check that proposal meets the requirements. This may mean that you need to fix certain things within 48 hours. If your new proposal does not meet the requirements, it will be rejected.

If proposal meets the formal requirements, applicant will be invited to give a presentation to ESA Phi-Lab Sweden's evaluation group. The evaluation usually takes place a few weeks after the last application date. The evaluation group consists of representatives from ESA Phi-Lab Sweden, ESA and other experts. There will also be an opportunity for the evaluation group to ask questions to the applicant.

All applicant will be notified in writing of the outcome of the evaluation. The applicant may, within ten calendar days of receipt of the notification, request an oral report explaining why proposal was approved or not.

ESA Phi-Lab Sweden will initiate contract negotiations with the applicant, taking into account the evaluation team's comments. If the applicant invited to this stage has not signed a contract within three months, and it is their own fault, ESA Phi-Lab Sweden may choose not to proceed with the contract.

In addition to the assessment, Vinnova will review how well gender equality has been integrated into proposal. We do this to potentially be able to support project to achieve increased gender equality. This may involve recommendations in our decision. Here you can read more about gender equality innovation: Gender equality funding of innovations.

Steps of the application process

• Parallel application: Check that the same proposal has been submitted to both Vinnova (via e-service) and ESA Phi-Lab Sweden (via e-mail).
• Initial assessment: Formal aspects are checked after the submission date; applicant may be asked to correct within 48 hours.
• Interview invitation: Applicant who meet the requirements may be invited to a presentation to the evaluation group, consisting of ESA Phi-lab Sweden, ESA, Vinnova and other experts.
• Result notification: Written notification of evaluation results; oral report available within 10 days upon request.
• Contract negotiations: Successful applicant will begin negotiations.

Vinnova also assesses financial status

Innan Vinnova decides on funding we also make a comprehensive assessment of the organizational and financial status of those seeking funding from Vinnova. We use information we receive from credit reports, currently from Dun & Bradstreet.

In order for Vinnova to grant funding the following applies:

• An organization applying for funding for personnel costs must be registered as an employer with the Swedish Tax Agency by the time the grant decision is made.
• Organizations must not be insolvent, undergoing liquidation or corporate restructuring, nor must they have unpaid debts with the Swedish Enforcement Authority.
• Limited liability companies must not have used up half or more of their share capital.
• Vinnova takes credit information on all applicant who are not public actors, and funding is not granted to organizations with the lowest credit rating C.
• Om Vinnova requests that SMEs must be able to demonstrate that they have the financial means to implement the project according to their budget in proposal. They cannot use public funding or their own funds intended for other project to cover project costs in this call for proposals.

Once we have assessed all applications, we will send you a decision either granting or rejecting your proposal. In the decision, we state how much funding each party in the project will be granted. Our decision cannot be appealed.

What happens if you are granted funding?

Om Vinnova grants your proposal, you must follow our general terms and conditions for funding.

The terms and conditions include:

• That the Swedish project partners should sign a document in which you approve your participation and undertake to implement the project, participant's approval.

See our general terms and conditions and get help understanding and fulfilling them.

We may also decide to add additional special conditions for individual project. If so, they will be stated in the decision.

Term for reporting to ESA, as well as term for drawing up project agreements, are described in the funding decision.

Could you have to pay back funding?

If you do not follow our term, you may be required to repay the amount. This also applies if you have been granted funding incorrectly or for an amount that is too high.

When the call for proposals closes, your proposal will be registered as. We will then send an email confirmation to the person responsible for the user account, as well as the project manager and the signatory. If you have not received a confirmation within 24 hours of the call for proposals closing, please contact us.

You should now submit your parallel application to ESA Phi-Lab Sweden. Applicant is responsible for ensuring this happens.

Once the call for proposals is closed, you cannot change anything in proposal. You can only make additions if we ask you to.

Who can read your proposal?

Your proposal will be read by Vinnova employees and the external evaluator participating in this the call for proposals. Everyone works under a duty of confidentiality.

Applications submitted to us become public documents. This means that we must disclose them if requested. We keep confidential information that we believe could cause financial harm to the individual if disclosed. This could include information about business and operational conditions, inventions or research results.

This is how we handle public documents and confidentiality.