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The funding, from development agency Highlands and Islands Enterprise (HIE), will be used by Shetland Space Centre (SSC) for commercial and technical evaluation of the use of the system from its proposed facility on Unst.
Michelle McCulloch, 50, works on Unst, one of the North Isles of the Shetland Islands.
SSC is planning to construct a commercial rocket launch centre on the island of Unst and is developing a teleport and other space-related ground infrastructure, while Goonhilly will invest in and install a new highly capable tracking antenna on Unst.
7pm: A chain of more than 1,200 beacons will be lit from Unst in the Shetland Islands, the most northerly inhabited island in the UK, to Cornwall, in the south.
A Unst Island B Fetlar Island C Fair Isle D Foula Island 4.
Holmfirth Vineyard isn't the most northerly in the British Isles as there are vineyards in Northumberland and there are vines grown in a polytunnel on the island of Unst, the most northerly of the Shetland isles.
The 60-year-old has set up the Shetland Space Centre on the remote islands of Unst - the most northerly part of the UK.
The facility on Unst in the Shetland Islands will improve the RAF and Nato's monitoring of the airspace north of Britain and further out across the Norwegian Sea.
Regulations dictate that spacecraft do not fly over "populated areas" and the north of Unst would give satellite launchers a clear, unobstructed route into orbit.
For example, there is a well-known story in Shetland, collected from Unst fiddler John Stickle in the mid-1900s, recalling the arrival of his great-great-grandfather and the origins of the Stickle family (which has comprised generations of fiddlers) on the island of Unst, the most northerly island of the Shetland archipelago and of the British Isles (there are two collected versions of this story, both of which are referenced here).