Every year, 324 billion cubic metres of freshwater are lost to droughts, over-irrigation, and poor water management, enough to leave hundreds of millions of people thirsty. Hydrosat, based in Luxembourg, is using satellites to help agribusinesses, governments and policymakers reverse that trend.
Founded in 2017, the company harnesses thermal imagery from satellites to track water use, predict crop yields, and reduce greenhouse gas emissions, helping farmers and policymakers manage water smarter and build climate resilience.
With over EUR50 million in funding and clients in more than 60 countries, including industry leaders like Bayer and civil government organisations such as the Regional Water Authority of Western Brabant in the Netherlands, Hydrosat has grown from an ambitious startup into a global player in the agri-tech space.
LSA sat down with President and founder Royce Dalby to discuss his journey from launching a space startup to scaling a company that’s helping reshape the future of sustainable agriculture.
The genesis of Hydrosat
Tell us about your career before Hydrosat.
I’ve worked in the space industry for over 35 years, including with NASA and major aerospace firms, before co-founding a consultancy helping companies expand into commercial space.
How did the idea for Hydrosat come about?
I worked for different companies in the Earth science business, such as Lockheed Martin and MDA, which later became Maxar. Ten years ago, these companies were asking “Where is space imagery going? Is there a business for us there?” I pointed out that the real challenge was that most consumers of space data did not understand how to use it. For space imagery to be useful commercially, it needed to be translated into easy-to-use tools that deliver actionable insights. When they hesitated to move themselves, that helped give birth to Hydrosat.
At that time, Luxembourg’s space sector was still in its infancy. So, why Luxembourg?
When we were consulting for these companies, my business partner Pieter Fossel and I saw a gap in the industry. They did not want to get into commercial remote sensing, so it seemed to us a real opportunity. At the same time, we could see that there's significant food insecurity and water scarcity around the world, especially in Asia and in Africa. Believe it or not, Belgium has some of the highest water scarcity in Europe, along with Spain. Thermal imagery from space can really unlock insights into water far better than anything else. So everyone can benefit from more efficient farming practices that use the most sophisticated and modern technology. In 2016, I had done some work with the Luxembourg government and saw they were building a space ecosystem. It seemed like a nurturing environment and so, in 2018, we moved here. And it's exactly what we hoped it would be.
A technology capable of measuring plant health from space
Hydrosat works with thermal imagery to ascertain the correct amount of irrigation for different crops in specific areas. How do customers use it and how does your technology differ from other competitors?
Our technology takes the temperature of plants and the soil and everything around it. I'm still impressed by the fact that from 500 kilometres away a satellite can tell the temperature of a leaf down to a one degree difference. It tells you everything you need to know about a plant: how well it's doing, how healthy it is, and how much water it needs all the way down to its roots.
This data is gathered through thermal imagery. How does Hydrosat source its data?
We have two satellites that are four times higher resolution than any government thermal satellites that have existed before. They are revolutionary in terms of resolution and how frequently they provide data. The satellites and data are the foundation, but the core of the business are the applications that we develop with the data. That’s done by our 36-person team in Luxembourg.
Tell us a bit more about the products that the team has developed in Luxembourg?
We have digital tools that help farmers increase their production by up to 50% and decrease the amount of water used. Our core product, IrriWatch, is an internet software system farmers can log onto every day. It shows where their fields are doing well, and where they need water. It gives a week-long irrigation planner, tells them their expected yield two months in advance, and it updates every day, so they can see how their actions impact production.
Global impact and contribution to climate action
Who are your core customers and markets?
Right now we work on 120 different crops for customers in 61 countries. Our number one crop is olives, followed by corn, sugar cane, potatoes and almonds. Our biggest customer base is in Asia, and we're rapidly expanding in Africa and Latin America. Not all of our work is for farmers. We also work on national scales for countries that want to better manage their water resources.
Can you share some examples of the kinds of companies you work with?
Working with Bayer, we’ve shown that smarter irrigation can cut methane emissions from rice farming by over 30%. It's a significant drop in the amount of methane that's released into the atmosphere every year.
One other example is the Regional Water Authority of Western Brabant in the Netherlands. They use Hydrosat’s daily and historical insights to get a much clearer view of crop conditions, allowing them to spot drying parcels early and understand how different soils, crops, and irrigation methods are behaving. This helps them respond faster during dry periods and manage their catchments more effectively together with farmers and agribusiness.
A tight and united space ecosystem in Luxembourg
Today, Luxembourg counts around 80 thriving companies and institutions active in the space sector, which makes for a varied ecosystem. How has the LSA and Luxembourg space ecosystem supported Hydrosat?
When we first arrived, the LSA was just a division of the Ministry of Economy. But LSA grew up around us and it has played a huge role, introducing us to potential partners in Luxembourg, providing advice and support, and introducing us to funders. The LSA has been an excellent partner.
Also in the ecosystem we have the space cafés, monthly gatherings where you meet other entrepreneurs, understand their challenges and how they've succeeded. Then there is the fact that whenever you need help, you can call the LSA CEO, Marc Serres, directly. I don’t think that would be the case in many other countries. So the whole environment here has been extremely supportive.
Have you partnered with any other local organisations?
During the first couple of years, we worked with the Luxembourg Institute of Science and Technology, LIST. They helped validate our early algorithms to show that our technology works. For the last few years, we have been working very closely with SnT at the University of Luxembourg, developing AI approaches to identify field boundaries for farms. They are now helping us develop AI algorithms to be able to do crop identification.
What advice would you have for other space companies considering moving to Luxembourg?
Take advantage of the ecosystem, because there is so much on offer. The LSA, Luxinnovation and LIST offer ways to engage with the community and help build your business. The Luxembourg-City Incubator at the House of Startups was also a great environment to build the company at the start. Overall, the Luxembourg ecosystem has supported us in R&D and in learning how to be a better company.
As it stands, you’ve raised more than $50M. To what extent has being in Luxembourg helped with raising funds?
Being in Luxembourg helps make people recognise from the beginning that we're a global company. We originally started in the US, before moving here. Expon Capital, which is based in Luxembourg, was one of our earliest investors from the Seed round in 2021. And the Luxembourg Future Fund invested a year ago. That's fantastic validation that what we're doing is great for the Luxembourg economy, and that we're growing here long-term.
More than a company, Hydrosat is driven by a core cause
Environmental protection seems to be a pillar of Hydrosat’s work. To what extent would you say that you're personally engaged in the environment?
I'm 62 years old, and I co-founded this company eight years ago. In my 50s, I realised I wanted to leave a legacy, to create a long-term positive impact on the planet. It seemed to me that solving food security issues and addressing water conservation problems were really key to the planet's health and to humanity. That’s what caused me to move into Hydrosat. I was in a fulfilling position at Avascent, where I was one of the co-founders, but I felt compelled to pursue work with a deeper environmental impact. When we first started Hydrosat, we didn't even realise the impact we'd be able to have on reducing methane and carbon dioxide. So, it's having even more of an impact on the environment than we expected.
What's next for Hydrosat in terms of technology and growth?
We have recognised we need to look at a larger scale and improve water productivity, where we can show governments and policy makers how to grow the best crop in each region to get the maximum potential and feed the most people for the lowest amount of water use. Countries are beginning to understand the value of thermal imagery in a way that they hadn't before. There are millions of farmers and dozens of countries that will benefit from our products, increasing food production and conserving water across the planet.
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Make sure to check Hydrosat's website to know more about the company!
