Enterprise Ireland has signed an agreement with the European Space Agency (ESA) to develop an incubation centre for space businesses in Ireland. The centre, when it is established, will bid to support more than 25 start-ups involved in space-related technologies by 2020.

The agreement was made during Enterprise Ireland’s trade and investment mission to the Netherlands and Germany, which is being led by Taoiseach Enda Kenny.

Some 45 Irish companies are currently working with ESA in the development of innovative technologies for the global market in space systems and space-related services and applications. The Irish space sector is estimated to have generated annual revenues of €76 million in 2015.

“This partnership between the European Space Agency and Enterprise Ireland will mean that Irish businesses and their innovators will be at the frontier of new space technologies,” Mr Kenny said at the European Space Research and Technology Centre (Estec) in Noordwijk, Netherlands.

“Ireland already has a proud record of building up a cluster of space technology companies and this new space incubator will take advantage of Government investment in research infrastructure in Ireland, the extensive network of technical facilities and expertise of the ESA, as well as the business development resources of Enterprise Ireland.”

Enterprise Ireland chief executive Julie Sinnamon said the deal would support client companies that are developing new technologies in areas such as advanced materials, microelectronics, avionics and space-related services.

Client companies that participated in the mission to the Netherlands included Arralis, Curtis Wright, Radisens Diagnostics, Treemetrics and Enbio.

In 2015, Enbio opened a €1.5 million space technology centre in Clonmel, Co Tipperary, for the production of “sunscreen for satellites”, while other Ireland-based companies operating in the sector include sensor company SensL, laser manufacturer Elbana Photonics and Moog Dublin, which is working on protecting spacecraft from harsh vibrations on lift-off.