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Telegraph
16 hours ago
- Business
- Telegraph
British rocket launch backed by Labour falls further behind in space race
A British rocket start-up backed by Labour has pushed back the date of its first launch and is hunting fresh funding as the UK faces falling further behind in the space race. Orbex, which in January received a £20m investment from the taxpayer, confirmed its first test launch from the Shetland Islands would be in 2026, rather than later this year as hoped. The start-up is building its 62ft Orbex Prime rocket at a factory in Scotland, which is intended to carry small satellites into space. After securing taxpayer support, Orbex is now seeking a further £120m in funding from private investors over the next four years to bring its ambitions to reality, it said in a submission to MPs. The company is also pushing for further government backing, calling for support for its bid to build a new, larger rocket for the European Space Agency. The space organisation, of which the UK is a member, is offering companies up to £144m for its European Launcher Challenge as Europe seeks alternatives to its current reliance on Elon Musk's SpaceX. Orbex has been lobbying for Labour's £7bn National Wealth Fund to back the space sector, which it said in a consultation filing to MPs could 'level the playing field and unlock significant value for the UK economy'. The delay to Orbex's mission comes after a series of setbacks for Britain's fledgling launch industry. After a failed launch from Cornwall in 2023, Sir Richard Branson's Virgin Orbit went bankrupt. Since then, no new attempts at an orbital mission have gone ahead. Now, a number of small rocket companies are seeking to launch from UK soil, largely from Saxavord, a spaceport on the Shetland Islands, although they have faced delays. German start-up, Rocket Factory Augsburg, is still targeting a mission this year from Shetland, although its last test ended with its rocket exploding on the launchpad. Skyrora, a Scottish start-up, is hoping to launch from Shetland next year. A spokesman for Orbex said: 'There are many factors at play in determining our launch schedule, including licensing and launch logistics. This is not unusual.' The spokesman added government support would be needed to build a European rocket: 'National funding commitments and private investment will both be needed for winning bidders. 'UK Government support for our sector will send a clear signal to ESA that UK orbital launch companies like Orbex are a smart choice and long-term partner.'
Telegraph
02-03-2025
- Business
- Telegraph
Meet the British space entrepreneur helping to break Europe's reliance on Musk
In a small factory in the Highlands of Scotland, near the wind-swept beaches of the Moray Firth, a British attempt to compete with Elon Musk's SpaceX is nearing completion. Nestled 30 miles from the legendary Loch Ness and close to Cawdor, the historic fiefdom granted to Shakespeare's Macbeth, it is a world away from SpaceX's sprawling Starbase in Texas. But it is here that Phillip Chambers, chief executive of space start-up Orbex, believes Europe could begin to loosen Musk's grip over the space industry and end its over-reliance on America for access to the stars. Orbex, which last month received £20m from the British taxpayer for its maiden mission, is hoping to reach space with its Prime rocket later this year. Prime would be the first British-made rocket to to reach orbit since Black Arrow, which last flew in 1971 from a launch site in the Australian outback. Unlike Black Arrow, Orbex is hoping to use a launch site in the United Kingdom. SaxaVord Spaceport on the Shetland Islands will host its first mission. Chambers, who leads Orbex, says Britain's ability to reach space should not be 'taken for granted', adding: 'We're in a world where we can't depend on the US for everything any more.' Against the backdrop of the war in Ukraine, where access to communications satellites has proved crucial and a growing rift between the US and EU, Mr Chambers says: 'I think we would be foolish not to own our own [space launch] capability.' But the path to building a domestic British launch industry has been anything but smooth. The Conservatives injected millions of pounds into the space sector and began efforts to find a suitable home for a British launch base almost a decade ago. Boris Johnson, the former prime minister, later promised to turn the UK into 'Galactic Britain'. However, a first attempt to send a satellite into orbit from UK soil ended in failure, as Virgin Orbit fired a rocket from a converted Boeing 747 in a mission from Cornwall in January 2023. Weeks later, the company was bankrupt. Since then, a clutch of start-ups, including Orbex, have made it their ambition to launch a rocket from the UK and finally bring the country into the space race. Other rivals, such as Scotland's Skyrora or Germany's Rocket Factory Augsburg are also hoping to launch from Britain. Orbex has been the beneficiary of Labour's largesse in the form of a convertible loan – debt that can turn into equity – meaning the taxpayer could ultimately become a shareholder in the business. However, success in space is never guaranteed. In addition to the government cash, Chambers says Orbex will need to raise a total of £50m in the medium term. Orbex's latest company accounts, signed off in September, say the cash is necessary to turn the loss-making start-up into a revenue-generating launcher. Without it, the business's going concern status would be in doubt. SpaceX may be worth $350bn (£278bn), but in its early days, the company came close to running out of cash multiple times, needing bailouts from Elon Musk. It had three failed launches until its first success with Musk's Falcon 1 rocket in 2008. Orbex's Chambers says SpaceX has 'executed really well', but points out it also had 'tens of billions of dollars' of US government support, including 'very important early contracts' as the business scaled up. Funding for new space companies is tight, with private funding rounds falling from $18bn in 2021 to $5.9bn last year, according to consultants Novaspace. Chambers, a 44-year-old former software entrepreneur, says the government funding 'takes us roughly halfway, we are still absolutely out fundraising' with an aim to 'achieve our first launch towards the end of this year.' It is ultimately aiming for 10 launches from Shetland per year. For Orbex and rival companies hoping to launch from Britain, the thinking is that the UK and the EU can become anchor customers for their businesses. 'Given what's happening politically, I do think there's now an even bigger impetus to build sovereign capability,' says Chambers. Europe previously used Russia's Soyuz launchers for its missions but the war in Ukraine ended that relationship. More recently, Musk's erratic behaviour, political interference and close ties to Donald Trump's White House have left Europe looking for alternatives to SpaceX, despite its track record. The European Space Agency (ESA), meanwhile, has suffered significant delays with its home-grown heavy-lift rockets, such as Ariane 6, which are typically launched from French Guiana in South America. Chambers says there was a recognition from the British Government and Europe that abandoning sovereign launch capabilities would be a 'massive mistake'. The UK has since 'changed tack', with Chambers saying: 'We do want to have a national capability, and we at least want to give ourselves an option.' The company's first attempt to reach space will be made with its Prime rocket, a 62ft launch vehicle that uses biofuels to reach space. It is capable of carrying about 150kg to low-earth-orbit, which is around 300 miles above the Earth. The vehicle has been built in Scotland, in a factory in Forres in Sutherland, which employs 140 people. Should the mission be a success, Orbex has a more ambitious goal. The company is preparing to build a medium-sized launch vehicle, called Proxima, which Chambers says could be a European 'workhorse' that would be 'close to being able to compete with the likes of SpaceX'. To do this, Orbex is hoping to win a share of business from the European Space Agency launcher challenge, which could award space companies €150m (£124m) to build new domestic rockets. The ESA is not an EU body and counts the UK as a member. If it fails to secure the funding, it is not clear if the project could progress. The company is in talks with the National Wealth Fund about further investment. Chambers says this could support 500 jobs in Scotland and could ultimately launch missions from bases such as Kourou, in French Guiana. He even suggests the UK's Ascension Island, in the Atlantic, as a possible future launch base. But the project has not been welcomed by everyone. Orbex dismayed the Scottish government in December last year when, with little warning, it pulled the plug on building its own spaceport, in Sutherland. The project had previously enjoyed millions of pounds in Scottish funding. This was a 'purely commercial' decision, says Chambers and the 'most capital-efficient, short-term solution'. The company will be keeping its lease and Chambers says it hopes to one day build its planned base, although he notes the UK 'doesn't need the capacity for two spaceports right now'. The question is, will it ever? Chambers joined Orbex in 2024, replacing the company's founder, Chris Larmour. There are no aerospace or rocket companies on his CV. After working as a software entrepreneur he later worked in investment at Denmark's Heartcore Capital, an Orbex shareholder. He founded Peakon, a workplace software business which was sold for $700m in 2021. 'The learning curve is absolutely steep,' says Chambers, 'it's an incredibly complex job and I feel incredibly grateful to have been given the opportunity to run the UK's launch company.'
BBC News
05-02-2025
- Business
- BBC News
Shetland spaceport ready for launch in July
The UK's new spaceport in Shetland will be ready for satellite launches by July, MPs have been told.A number of companies plan to use SaxaVord Spaceport in Unst, the northernmost point in the UK, as a launch site for commercial Factory Augsburg (RFA), from Germany, is thought to have the most advanced plans and it was officially licensed for spaceflight by the regulator last an RFA launch test, a rocket engine exploded at the spaceport in August. The company said no one was injured and the launch pad had been "saved and is secured". Jorn Spurmann, chief commercial officer of RFA, described it as a "big and wonderful image" which had resulted in "a lot of learning".Another company Orbex, based in Forres in north-east Scotland, recently announced it will switch its first launch from Sutherland Spaceport to SaxaVord. It hopes to blast off its "Prime" rocket for the first time towards the end of this company said it may restart work at the Sutherland facility if it needs more launch capacity by 2028. Westminster's Scottish Affairs Committee heard from a number of figures in the space industry who hope to tap into a lucrative global market for small satellite Hammond, deputy chief executive of SaxaVord, said work is ongoing on the integration hangar where rocket stages will be joined together and satellites paired with the launch told the MPs the company was "absolutely" planning on a launch this year and said staff are now going through a detailed training Hammond said: "Our aim is to have all of that done by 1 July. After which, the second part of the year, we are now ready for launch." He suggested SaxaVord was the UK's Cape Canaveral, stressing there is competition from Norway's Andoya whether the spaceport needs more government financial support, he said: "Yes and no, we would quite happily take it, if we don't get it we will have to go out and get extra money and work very hard."He urged the MoD not to rely on Elon Musk's SpaceX for launches and said the US armed forces space division had "effectively booked all of the launches from the States until 2030 - so if we want to get UK satellites up there, we're going to have to find another way of doing it".Phil Chambers, chief executive of Orbex, was asked about his company's decision to pause work at the Sutherland Spaceport politicians were disappointed at the decision, noting Sutherland Spaceport has received support from the regional development agency. Mr Chambers said it was a purely commercial decision, as completing work at the site near Tongue would have cost £15m and the company had not raised as much money as he suggested Orbex could restart work in Sutherland if it needs more launch capacity by 2028, adding: "It's not a decision we took lightly and not one that is easy to chop and change."We have a new plan now, which is to do the first 10 launches a year from SaxaVord and then look for the additional capacity in Sutherland."He added that objections from Anders Holch Povlsen, Scotland's richest man and an investor in SaxaVord Spaceport, had not prevented Sutherland from receiving planning Thompson, head of government affairs at Skyrora, said his company aims to carry out a suborbital rocket launch from SaxaVord later this said Skyrora has experienced delays from the regulator, the Civil Aviation Authority (CAA), and had carried out its first test launch from Iceland as "we got tired of waiting".
The Independent
05-02-2025
- Business
- The Independent
Spaceport on Shetland Islands will be ready for launch by July, MPs told
The spaceport at the northernmost tip of the UK will be ready for satellite launches by July, MPs have been told. A number of companies plan to use SaxaVord Spaceport, on Unst in the Shetland Islands, as a launch site for commercial rockets. Rocket Factory Augsburg (RFA), from Germany, is thought to have the most advanced plans and it was officially licensed for spaceflight by the regulator last month. Orbex, based in Forres in north-east Scotland, recently announced it will switch its first launch from Sutherland Spaceport to SaxaVord. It hopes to blast off its 'Prime' rocket for the first time towards the end of this year. On Wednesday, Westminster's Scottish Affairs Committee heard from a number of figures in the space industry who hope to tap into a lucrative global market for small satellite launches. Scott Hammond, deputy chief executive of SaxaVord, said work is ongoing on the integration hangar where rocket stages will be joined together and satellites mated to the vehicles. He told the MPs they are 'absolutely' planning on a launch this year, adding staff are now going through a detailed training process. Mr Hammond said: 'Our aim is to have all of that done by July 1. After which, the second part of the year, we are now ready for launch.' He compared SaxaVord to the UK's Cape Canaveral, stressing there is competition from Norway's Andoya Spaceport. Quizzed on whether SaxaVord needs more Government financial support, he said: 'Yes and no, we would quite happily take it, if we don't get it we will have to go out and get extra money and work very hard.' He urged the MoD not to rely on Elon Musk's SpaceX for launches, saying the US Space Force has 'effectively booked all of the launches from the States until 2030 – so if we want to get UK satellites up there, we're going to have to find another way of doing it'. Phil Chambers, chief executive of Orbex, was asked about his company's decision to pause work at the Sutherland Spaceport site. Politicians representing the Highlands have been disappointed at the decision, noting Sutherland Spaceport has received support from the regional development agency. Mr Chambers said it was a purely commercial decision, as completing work at the site near Tongue would have cost £15 million and the company had not raised as much money as hoped. However he suggested Orbex could restart work at Sutherland if it needs more launch capacity by 2028, adding: 'It's not a decision we took lightly and not one that is easy to chop and change. 'We have a new plan now, which is to do the first 10 launches a year from SaxaVord and then look for the additional capacity in Sutherland.' He added that objections from Anders Holch Povlsen, Scotland's richest man and an investor in SaxaVord Spaceport, had not prevented Sutherland from receiving planning permission. Alan Thompson, head of government affairs at Skyrora, said his company aims to carry out a suborbital rocket launch from SaxaVord later this year. He said Skyrora has experienced delays from the regulator, the Civil Aviation Authority (CAA), and had carried out its first test launch from Iceland as 'we got tired of waiting'. Jorn Spurmann, chief commercial officer of RFA, spoke about the tests his company is carrying out to prepare for the first flight. An engine test at SaxaVord in August last year resulted in the first stage of its rocket exploding, which Mr Spurmann described as a 'big and wonderful image' which had resulted in 'a lot of learning'.
Yahoo
29-01-2025
- Business
- Yahoo
First British-made rocket to launch from UK soil
A British-made rocket will attempt to reach space from home soil for the first time later this year, with the project going ahead after receiving £20m in taxpayer funding. Peter Kyle, the Technology Secretary, announced the investment package for Scotland-based space company Orbex on Wednesday, paving the way for it to launch its first rocket from the Shetland Islands by the end of 2025. The start-up is building the 62ft Orbex Prime launcher at a factory in Forres, the north of Scotland, which will be tasked with carrying small satellites to orbit. Orbex, which employs around 140 people, is one of a number of space businesses racing to be the first to complete a successful launch from Britain after the failure of Sir Richard Branson's Virgin Orbit in 2023. It is hoped that a successful mission could set the UK on a path to providing an alternative to more established space giants, such as Elon Musk's SpaceX, while also giving Britain the ability to carry out its own space missions. Mr Kyle told The Telegraph that the upcoming launch was a 'unique opportunity' for the UK to get ahead of its European rivals and would bring 'prestige' to the domestic space sector. He also highlighted how the investment forms part of Sir Keir Starmer's attempt to 'hardwire' growth into all Cabinet decisions. Mr Kyle said: 'Space is one of the global high-growth sectors. We want to seek to harness that.' He added that the UK would not be merely trying to imitate SpaceX's recent efforts launching satellites, claiming that Britain will not just become a 'mini-America'. 'We do have unique assets here because of our geography and skills,' he said. If Orbex completes its project, it will be the first UK-made rocket capable of orbital missions since Black Arrow, which last flew in 1971. Black Arrow completed just one orbital mission, which was conducted from a base in the Australian outback, and never flew from the UK. By contrast, Orbex is plotting its launch from SaxaVord, a spaceport on the island of Unst in the far north of the UK. Other companies, such as Edinburgh's Skyrora and German business RFA are also hoping to host missions from the former RAF base. Meanwhile, a rocket base in Norway is also competing to become the first location in Western Europe to host a successful orbital mission. Prior to receiving its £20m investment from the Government, Orbex had planned to manage its own rocket base on the Scottish mainland. However, it pulled the plug on the project last year to focus on developing its low-carbon rocket design. The decision to drop the Highlands spaceport was met with dismay from local groups, including Highlands and Islands Enterprise – a development agency – which said it was 'deeply disappointed' by the move. However, Mr Kyle said the UK's space strategy was now 'much more focused', claiming that the department had inherited a 'series of really interesting projects that just did not add up'. 'There was no broader thinking,' he said. He said that the UK would soon be able to 'design, test, build and launch British rockets, carrying British satellites, from British soil'. The investment in Orbex will be in the form of a convertible loan – a type of debt that can be converted into equity. Separately, asked whether No 10 would reconsider some of its tax rises to focus on growth, Mr Kyle said global companies were most concerned about cutting red tape and planning reform. He also said the UK needed to 'grasp with both hands' the opportunity offered by AI. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
