ImageSat International’s (TLV: ISI) 30 cm ultra-sharp resolution EROS-C3 earth surveillance satellite suffered two anomalies in orbit. Built by Israel Aerospace Industries (IAI), EROS-C3 launched in December 2022 with a reported 10 year design life. EROS-C3 total cost (satellite, launch and insurance) to ISI was reportedly $186m.
ISI noted in the “material events” section of its 2024 3Q financial report that EROS-C3 experienced two recent anomalies in orbit. These potentially may negatively affect the satellite’s operational life. First in September 2024, an anomaly occurred affecting EROS-C3’s control system. A pre-programmed stabilization process triggered, but malfunctions in the propulsion system burnt off excess fuel and lowed the satellite’s orbit. ISI and IAI engineers successfully addressed the malfunctions and restored the EROS-C3 to commercial capability.
Then in November 2024, a second anomaly occurred again affecting EROS-C3’s control system. ISI and IAI engineers were able to recover the satellite following this anomaly while burning less fuel than used to recover from the September anomaly.
ISI and IAI reportedly are investigating improvements to EROS-C3s fuel consumption in the event of another anomaly. ISI stated EROS-C3, in light of this unexpected loss of fuel, should fulfill a 8 year mission length in orbit. ISI however warns that additional fuel-consuming events could result in EROS-C3 failing to reach 8 years of operation. Previously ISI’s accounting depreciated EROS-C3 over 12 years. ISI reported they reduced this to 8 years. Whereas the 3Q report references ISI having insurance, whether the insurance policy will cover financial loss related to shortened EROS-C3 service operation is unclear.
ISI is not the first public space company this year to report a malfunctioning satellite in orbit. Earlier in 2024, Japanese SAR satellite operator iQPS (TYO: 5595) reported two of its satellites failed in orbit: one due to a propulsion system malfunction and the other the communications system. However, these satellites cost iQPS about $6-7m each to build, launch and insure. ISI’s exposure is substantially higher with EROS-C3.