North Wales could be a step closer to being a business “space hub” after the UK Government announced more than half-a-million pounds worth of funding.

The UK Space Agency today said there will be £560,000 spread across seven sites in the UK to build up business hubs for the “commercial space race”.

It is hoped the Welsh site will be in North Wales after it emerged last year a space port was planned for an airfield at Llanbedr.

The space hubs will complement spaceports by “building up the space sector” in the seven areas, said the UK Space Agency.

The funding was welcomed by Welsh Government’s business minister Ken Skates.

He said: “It will give us the opportunity to identify areas of strength and opportunity within our space sector, and provide us with the stimulus to deliver a programme of work which will be structured to feed into the National Space Strategy.

“The space sector in Wales is a critical part of the Welsh economy, and we are committed to supporting its growth and development.

“We offer a unique physical and business environment to companies in the space economy, boasting a strong advanced manufacturing and technology base with specific strengths in sectors that share elements of the space industry supply chain, such as photonics, aerospace, secure communications and software systems.”

The six-month space hub project will see local government, experts and business leaders working together to take advantage of the opportunities of the commercial space industry.

It will be led by Welsh Government and will include academic institutions, research groups and businesses to look at growing the space sector in the chosen area.

The commercial space business employs 42,000 people across the UK and generates an income of almost £15bn annually.

The Welsh Government owns the former military site of the spaceport at Llanbedr, but it is leased to Snowdonia Aerospace LLP which works closely with defence contractor QinetiQ.

Gwynedd Council signed an agreement with Snowdonia Aerospace to upgrade the facilities with £7.5m of European money.

Earlier this month, Gwynedd Council approved the use of compulsory purchase orders to ensure construction of the multi million pound Llanbedr bypass – set for completion in 2023 – remains on track, allowing better transport links to the spaceport.

Llanbedr had already benefited from £500,000 of Space Agency cash to develop space research and the launching of satellites and drones.

The Welsh Government also provided £135,000 towards a project to test unmanned and electric aircraft and a space plane.

Facilities will include “world class” training for astronauts and the aero-medical sector, satellite development and launch, plus a visitor centre and planetarium together with supporting hotel.

The UK Space Agency has promised there will be more announcements over the coming months.