We present an overview of the Naval EarthMap Observer (NEMO) spacecraft and then focus on the processing of NEMO data both on-board the spacecraft and on the ground. The NEMO spacecraft provides for Joint Naval needs and demonstrates the use of hyperspectral imagery for the characterization of the littoral environment and for littoral ocean model development. NEMO is being funded jointly by the U.S. government and commercial partners. The Coastal Ocean Imaging Spectrometer (COIS) is the primary instrument on the NEMO and covers the spectral range from 400 to 2500 nm at 10-nm resolution with either 30 or 60 m work GSD. The hyperspectral data is processed on-board the NEMO using NRL's Optical Real-time Automated Spectral Identification System (ORASIS) algorithm that provides for real time analysis, feature extraction and greater than 10:1 data compression. The high compression factor allows for ground coverage of greater than 106 km2/day. Calibration of the sensor is done with a combination of moon imaging, using an onboard light source and vicarious calibration using a number of earth sites being monitored for that purpose. The data will be atmospherically corrected using ATREM. Algorithms will also be available to determine water clarity, bathymetry and bottom type.