The UK government has announced a £20 million ($24.8 million) investment in Orbex, a Scottish spaceflight startup aiming to compete with SpaceX. The funding was revealed during the European Space Conference in Brussels and is part of a larger fundraising round led by the company.

Orbex successfully raised a total of £23 million, with contributions from Denmark’s Export & Investment Fund, Octopus Ventures, and former Informatica CEO Sohaib Abbasi. The UK government has also previously invested in Eutelsat OneWeb, following a $1 billion rescue deal in 2020 with Indian conglomerate Bharti.

Orbex: A Key Player in the UK Space Sector

Founded to develop small and medium-sized rockets, Orbex focuses on launching small satellites into low Earth orbit. Its upcoming rocket, named Prime, measures 19 meters in length and runs on bio-propane, a renewable fuel source.

Orbex plans to launch Prime by the end of 2025. The UK government sees this investment as a strategic move to advance the country’s space sector and establish the UK as a competitive player in space technology.

Tech Minister Peter Kyle emphasized that the investment will help "turbocharge the country’s position in the space sector." Meanwhile, Orbex CEO Phillip Chambers stated that the funding "demonstrates confidence in the UK’s space rocket manufacturing and launch sector."

Competing with SpaceX in the European Market

Orbex is not the only UK-based company aiming to challenge SpaceX. Another startup, Skyrora, has announced plans to launch satellites from UK soil later this year. Additionally, Germany’s Rocket Factory Augsburg (RFA) is preparing for a UK launch in 2025.

These companies specialize in microlaunchers, a category of smaller rockets designed to carry lightweight payloads. This sector is growing as European nations seek independent access to space amid increasing global competition.

A study from the University of Exeter in 2021 found that Orbex’s Prime rocket could produce up to 96% fewer carbon emissions compared to conventional space launch systems. This positions Orbex as a more sustainable alternative in the space industry.

Strengthening the UK’s Space Capabilities

The UK government aims to enhance its sovereign space capabilities with this investment. European space companies, including RFA, have highlighted the strategic importance of developing independent launch systems to compete with major players like the US.

With the UK’s increasing commitment to space innovation, Orbex’s upcoming launch marks a significant step toward securing a stronger presence in the global space industry.

SOURCE: CNBC | PHOTO: ORBEX

This article was created with AI assistance.