UK Government invests £20m in ‘landmark’ Scottish rocket launch

The UK Government has invested £20m in a rocket set to take off from Scotland later this year in a bid to “turbocharge” the UK’s place in the global space race.

The “first of its kind” funding will help launch company Orbex finish its rocket Prime, which is expected to launch from the SaxaVord spaceport in Shetland by the end of the year

Announcing the funding at the European Space Conference in Brussels, technology secretary Peter Kyle also revealed the government has become a shareholder of the launch company.

The cash injection forms part of the UK’s efforts to secure its place as a leading European provider of small satellite launch, with Glasgow currently building more satellites than any other city in the continent.

It also falls under the government’s plan to reboot the economy, with the launch bringing “highly skilled” jobs to the UK and helping to nurture the sector’s talent pipeline.

The government hopes the move will also make the UK a hotspot for international investment, with the European demand for satellites by2033 forecasted to be worth around £40bn.

Kyle said: “Britain’s impressive toolkit of scientific talent, world-class facilities, and unique geography means we stand ready to lead the charge and to work together with our international partners as a key part of the new space revolution in Europe. 

“By investing £20m in this rocket launch, we are not only helping the country to become a leading destination for small satellite launches in Europe but bringing highly skilled jobs and investment to communities and organisations across the UK, as part of our plan for change.   

“Supporting Orbex’s launch will also turbocharge the country’s position in the space sector and inspire our next generation of space professionals, who will be able to design, test, build and launch British rockets, carrying British satellites, from British soil.”  

Prime is the first UK-manufactured and launched orbital rocket, and is also world-leading for its approach to sustainability.

Powered by renewable bio-propane fuel, which cuts carbon emissions significantly compared to other similarly sized rockets, it is poised to become the first in a new generation of green launch systems.

It is also designed to be re-useable, meaning that what does not burn up harmlessly in the atmosphere during its journey back to will be refurbished and reused in future projects.

Phillip Chambers, chief executive of Orbex, said: “This first of a kind investment by the UK government demonstrates its confidence in the UK’s space rocket manufacturing and launch sector and is an exciting start to the opening of our Series D fundraising. We are entering the final preparations to deliver the most flexible and environmentally sustainable launch services to the global satellite industry.

“This investment paves the way not only for us to launch our first rocket this year but also to develop a larger rocket to enable us to compete in the European Launcher Challenge. These development goals are crucial to our longer-term development”.

The cash boost comes after Orbex announced in December it would shift its rocket launch activities from its spaceport in Sutherland to the rival site in Shetland.

The change faced criticism north of border as Sutherland project had been backed by a £14.6m public investment package, including more than £9m from the Highlands and Island Enterprise.

Following the decision to place the development of the site on hold, First Minister John Swinney said he would look into "completely reasonable" concerns around recouping that public money invested in the spaceport.

Orbex has said it does not believe it has breached any of its grant agreements.