The killer speedboats designed to defend Britain's coastline

Telegraph

6 days ago

As they zoomed around the Baltic Sea last month, a pair of British drones provided a glimpse of how navies are adapting to a new age of warfare.
The K3 Scout unmanned surface vessels (USVs), made by Kraken Technology, were deployed alongside other maritime robots as part of an exercise conducted by NATO's Task Force X.
With a top speed of 55 knots, the autonomous boats can be sent on reconnaissance missions hundreds of miles away, dispatched laden with troops and cargo, or loaded up with explosives for kamikaze missions.
They can also carry powerful sensors and fire tube-launched loitering munitions, known as suicide drones.
In the future, dozens of these relatively low-cost devices – each about 27 feet long – could be unleashed to create a high-tech 'picket fence' around the British Isles. This would allow the Royal Navy to rapidly intercept smugglers, enemy ships or investigate suspicious activity without having to dispatch crewed vessels.
'Once you've detected an object of interest, either above or below the surface, you can shadow them for some time,' says Mark Exeter, Kraken's operations chief.
'It has the speed and performance to keep up with anything or intercept it. You can't shake us off.'
The drones highlight the lessons Britain and its allies are learning from the war in Ukraine, where low-cost drones are being used to destroy far more expensive platforms.
Yet it also represents a change in tack for Kraken's founder, who was still focused on high-performance powerboat racing as recently as five years ago.
From powerboats to firepower
Portsmouth-based entrepreneur Malcolm Crease decided to pivot towards defence during the pandemic, after getting several approaches from industry.
Interest was originally spurred by the advent of low-earth satellites, which opened up the possibility of controlling drones remotely, but took on fresh urgency as operations in Ukraine demonstrated a need for speed in drone operations.
In the Black Sea, Kyiv's forces have put swarms of explosive-laden USVs to devastating effect against the Russian navy, causing so much havoc that Moscow's fleet has effectively been confined to port.
They have even been armed with missiles and used to shoot down aircraft, including a Russian Mi-8 helicopter and a Su-30 fighter jet, according to reports.
But according to Crease, there is another, far more important reason that companies like Kraken are suddenly in vogue: 'The ability to rapidly iterate and think on our feet is our greatest strength.
'We didn't have to go through months and years of development. We were able to accelerate through that very rapidly – we think like a race team.
'When we started out there was confusion about our background – people would say, 'But you're the racing guys, what do you know about defence?'
'Now, four years down the track, it's a real credibility statement for us. People like that pedigree because they understand why we are able to do what we can do.
'When you start getting out into open water and high sea states and temperatures and wind chill factors and everything else, it's a very, very different, difficult environment to operate in.
'But it's sort of our backyard – it's what we used to do for fun in a racing context. So it's in our DNA.'
Small and agile alternative
His firm is just one of several British engineering companies turning their hands to defence as Western governments scramble to re-arm.
In the UK, ministers have said they want more of these 'small, often family-owned, firms to bring their innovations, their agility and their expert workforce' to the fore, offering a nimbler alternative to the industry's slower-moving defence giants, such as BAE Systems, Babcock and Rolls-Royce.
The Strategic Defence Review, published in June, also called for the development of 'dual use' technologies that can be used for both civilian and military purposes, making the defence industry more resilient to supply chain shocks.
And though small businesses are unlikely to build multibillion-pound fighter jets or submarines, there is currently an insatiable appetite for what is known in military jargon as 'mass'.
These cheap weapons range from largely disposable first-person view drones to more sophisticated platforms such as Kraken's K3 Scout, which are considered 'attritable' rather than indispensable.
Yet all tend to have one thing in common: they are easily produced at scale and fast.
For example, while the European consortium that makes Typhoon fighter jets can currently muster 20 to 30 jets per year at a push, Kraken will soon expand its operations to make 1,000 Scout drones annually.
The company has secured a contract with the Ministry of Defence and has also just secured backing from NATO's investment fund and an unnamed country in the alliance.
Another business that has entered the military space is Oxfordshire-based MGI, which was founded by ex-Formula 1 engineer Mike Gascoyne in 2003.
Originally, the company provided design consultancy services, but it has since expanded to manufacture unmanned aerial and maritime vehicles, as well as an ultra-cheap missile.
This month, MGI demonstrated its SkyShark drone at its airfield near the village of Enstone. It can be sent on intelligence missions, loaded up with munitions or used for one-way kamikaze strikes, at a fraction of the price of a traditional cruise missile.
Crucially, it also relies on an all-British supply chain, including gas turbine engines made by fellow Oxfordshire firm Argive or a silent, electric fan engine made by London-based Greejets.
His company has also secured contracts with the Ministry of Defence, which he says he cannot discuss.
'Traditionally, defence projects take years to develop, but the essence of Formula 1 is you've got to develop rapidly and move really quickly,' adds Gascoyne.
'You make a new car every year, and every two weeks, somewhere around the world, you're racing a different version of it, constantly updating to stay in the game and remain competitive.
'Now, the military has realised what they need as well.'
Start-up struggles
Still, while the success enjoyed by the likes of MGI and Kraken so far is promising, many executives say there is still a long way to go to make the defence industry more welcoming to start-ups.
It is still common for smaller companies to struggle to obtain bank accounts owing to controversial environmental, social and governance (ESG) investing rules.
Many businesses also struggle to stay afloat while they wait months and often years for the Ministry of Defence to award contracts. This limbo period has been dubbed the 'valley of death' by the industry.
'British industrial creativity is second to none,' says Labour's Fred Thomas, a former Royal Marines commando who is now MP for Plymouth Moor View and a member of the defence committee. 'We have the best engineers, designers and thinkers in the world.
'Applying these advantages to defence innovation is vital for our country's security. It's on the Government to incorporate these capabilities into the national arsenal.'
Ministers have vowed to improve the situation by requiring officials to award contracts far more quickly.
They have also established the new UK Defence Innovation organisation, which has been given a ring-fenced budget of £400m per year and a mandate to seek out innovation.
With luck, it should mean that more companies like Kraken can contribute to Britain's defences.
'We've done this in a slightly unconventional way, but we're now being taken very seriously,' Crease adds.
'We're anticipating explosive growth.'