Tag: commercial

Morgan Stanley recommends buying Virgin Galactic stock

9:46 am

Capitalism in space: A report yesterday by Morgan Stanley recommended the purchase of Virgin Galactic stock because of its claim that it might repurpose its SpaceShipTwo suborbital spacecraft from space tourism to point-to-point transportation on Earth.

Morgan Stanley began coverage of Virgin Galactic’s stock on Monday with an overweight rating, saying the space tourism company’s shares will soar as it proves out a long-term plan of flying people around the world at hypersonic speeds. “A viable space tourism business is what you pay for today … but a chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside,” Morgan Stanley analyst Adam Jonas wrote in a note to investors.

…Morgan Stanley’s price target of $22 a share represents a 203% increase from Virgin Galactic’s current levels. The company outlined a three phase plan to investors during its roadshow earlier this year. While Morgan Stanley gave a $10 a share valuation to Virgin Galactic’s space tourism business, phases one and two of its plan, the firm sees $12 a share in value from phase three: Hypersonic point-to-point air travel.

The report caused the space company’s lagging stock to surge yesterday, though its value today ($9.41) remains well below its opening price ($12.53).

Personally I think anyone who takes Morgan Stanley’s advice is a fool. Virgin Galactic has spent fifteen years trying to develop this suborbital spacecraft, and has still not flown any customers. Moreover, the design is underpowered, which means I have serious doubts it could be used for any point-to-point transportation. To make that happen will require a complete redesign.

This recommendation by Morgan Stanley also suggests that this is not my investment firm of choice. The analysis here seems very poor and somewhat ignorant of the technology involved, and suggests instead that it was aimed merely to cause a jump in the price so that some of Morgan Stanley’s customers could get rid of their already-purchased stock without too much loss.

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ESA hires private company to remove space junk

9:12 am

Capitalism in space: The European Space Agency has hired the private company ClearSpace to fly an unmanned mission aimed at de-orbiting a large no-longer-needed launch component of its Vega rocket.

The European Space Agency signed a debris-removal contract with Swiss startup ClearSpace tasking the company with deorbiting a substantial piece of a Vega rocket left in orbit in 2013.

The mission, dubbed ClearSpace-1, is slated to launch in 2025 to capture and deorbit a 100-kilogram Vespa payload adapter an Arianespace Vega left in orbit after deploying ESA’s Proba-V remote-sensing satellite.

ClearSpace will lead a consortium of European companies in building a spacecraft equipped with four robotic arms to capture debris and drag it into Earth’s atmosphere.

The real importance of this contract is its nature. ESA is not taking the lead in designing or building the robot to do this work. Instead, it is acting merely as a customer, hiring ClearSpace to develop and build it. Afterward the robot design will belong to ClearSpace, which will then be able to sell that design for further space junk removal contracts.

[Luc Piguet, co-founder and chief executive of ClearSpace] said that while this first mission will destroy both the debris and the servicer spacecraft, future plans call for servicers that could deorbit multiple objects without also destroying themselves.

It seems that the ESA is following the recommendations I put forth in Capitalism in space, shifting power and ownership of its space missions from the agency to the private sector. This is excellent news.

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New Shepard test flight delayed to tomorrow

8:58 am

The sixth flight of Blue Origin’s second New Shepard reusable suborbital capsule has been delayed today until tomorrow due to weather.

As they have done on the last few flights they are launching a number of commercial payloads, including winning high school art chosen as part of a contest sponsored by both Blue Origin and the music band OK Go.

I have embedded below the fold the live stream for tomorrow’s launch, set to go live at around 8 am (Eastern).
» Read more

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Dragon launch abort test set for January 4

11:41 pm

NASA announced on December 6 that the launch abort test of SpaceX’s crew Dragon capsule will occur no earlier than January 4.

SpaceX and NASA originally hoped to launch the test flight, called an In-Flight Abort Test, sometime this month, but an exact launch date was never released. In a statement Friday, NASA officials said the mission will now lift off no earlier than Jan. 4 from Pad 39A of NASA’s Kennedy Space Center in Cape Canaveral, Florida, pending launch range approval from the U.S. Air Force.

The new launch target will push the SpaceX flight beyond the year-end holidays, as well as a planned Boeing launch of its first uncrewed Starliner astronaut taxi for NASA, which is slated to launch Dec. 20.

The article does not explain why a December test was not possible. The second paragraph of the quote above however might give a hint, in that a December launch might have interfered with those Christmas/New Year holidays, and both the agency and the company might have decided it was better for all to wait an extra week or so.

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Inmarsat bought out and delisted from stock exchange

9:07 am

Capitalism in space: The long established communications satellite company Inmarsat has been bought out by a consortium called Connect Bidco and delisted from stock exchange.

Nor is Inmarsat alone:

Inmarsat is the third satellite operator to delist from public markets this year, following Hong Kong-based AsiaSat and London-based Avanti in September.

Inmarsat reported a loss of $89.1 million on $1.06 billion in revenue for the first nine months of the year. The company claimed $36.1 million in profits on $327.3 million in revenue for the months of July, August and September — it’s last public quarter before the buyout.

This story and the quote above explain what is happening. Established satellite companies, that traditionally have built big geosynchronous satellites, are having increased trouble making money as the industry shifts to smaller satellite and constellations in low Earth orbit.

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Successful Russia and Rocket Lab launches

8:52 am

Two launches successfully took place in the early morning hours today. First Rocket Lab launched seven small satellites into orbit, including one that will release an artificial meteor shower. During that launch they also obtained telemetry of their first stage as it fell to Earth.

Rocket Lab CEO Peter Beck just tweeted that the Electron’s first stage performed well during today’s re-entry experiment. “Electron made it through wall! Solid telemetry all the way to sea level with a healthy stage. A massive step for recovery!!” Beck tweeted.

Russia in turn launched a Progress cargo capsule to ISS.

The leaders in the 2019 launch race:

27 China
19 Russia
12 SpaceX
7 Europe (Arianespace)
6 Rocket Lab

China now leads the U.S. 27 to 25 in the national rankings.

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Lloyd’s introduces new insurance policy for smallsats

10:57 am

Capitalism in space: The insurance company Lloyd’s today introduced a new insurance policy expressly designed for the emerging smallsat launch industry.

The solution – called “Llift Space” – is only available in the Lloyd’s market and allows customers to cover their assets from the pre-launch phase, including transit and placement on the launch vehicle, through to the launch phase and in-orbit operation. It is designed for satellites that weigh less than 300 kilograms (661.4 pounds).

The policy is modular so customers can choose the elements within each phase that are most relevant to their coverage needs.

The product is backed by a consortium of 18 syndicates, led by Brit and Hiscox MGA, with $25 million capacity per risk, and is targeted at the NewSpace sector.

NewSpace is characterized by lower cost, easier routes to space, opening up the sector to private enterprise, wealthy entrepreneurs and innovative start-ups. This is increasing the need for space insurance.

This action is a strong endorsement by the investment business in the future of the new smallsat launch industry.

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SpaceX targets December for launch abort test, early 2020 for 1st manned Dragon mission

10:22 am

According to SpaceX officials, the company is aiming to perform its Dragon launch abort test before the end of this month, and then follow-up with the first manned Dragon mission to ISS in early 2020.

“We’re targeting December,” said [Jessica Jensen, director of Dragon Mission Management at SpaceX] today (Dec. 3) during a news conference discussing tomorrow’s (Dec. 4) planned launch of a robotic Dragon cargo mission to the International Space Station (ISS). “We’ll see if we can get there.”

SpaceX holds a multibillion-dollar NASA contract to ferry astronauts to and from the ISS using Crew Dragon and the Falcon 9. The capsule has already visited the orbiting lab once, on the landmark uncrewed Demo-1 mission this past March. If everything goes well with the [launch abort test], the company will be cleared for the first crewed mission — a test flight known as Demo-2 that will carry NASA astronauts Doug Hurley and Bob Behnken.

Demo-2 is targeted for early 2020, SpaceX founder and CEO Elon Musk has said. Contracted, operational ISS flights would follow shortly thereafter.

NASA officials have repeatedly said that early 2020 is too soon because of the paperwork that SpaceX has to complete prior to launch. It could be that Musk is gently applying pressure on them here to speed up this make-work so that the real business of spaceflight can proceed.

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SpaceX to test upper stage endurance as part of Dragon launch

12:52 pm

Capitalism in space: SpaceX plans to perform a six hour orbital coast test of its Falcon 9 upper stage following the release of the Dragon cargo capsule tomorrow (scrubbed today due to high winds).

This is why the first stage will land on a drone ship rather than at Kennedy.

According to SpaceX the test is at the request of “other customers”, unnamed. The article adds this speculation:

Jensen says that the coast test will be performed for unspecified “other” customers, presumably referring to the US Air Force (USAF) and other commercial customers interested in direct-to-geostationary (GEO) launch services. Direct GEO launches require rocket upper stages to perform extremely long coasts in orbit, all while fighting the hostile vacuum environment’s temperature swings and radiation belts and attempting to prevent cryogenic propellant from boiling off or freezing solid. In simple terms, it’s incredibly difficult to build a reliable, high-performance upper stage capable of remaining fully functional after 6-12+ hours in orbit.

Although SpaceX said that the test was for “other” customers, that may well have been a cryptic way to avoid indicating that one such customer might be NASA itself. NASA is in the midst of a political battle for the Europa Clipper spacecraft’s launch contract, which is currently legally obligated to launch on NASA’s SLS rocket. Said rocket will likely cost on the order of >$2 billion per launch, meaning that simply using Falcon Heavy or Delta IV Heavy could save no less than ~$1.5 billion. Incredibly, that means that simply using a commercial launch vehicle could save NASA enough money to fund an entire Curiosity-sized Mars rover or even a majority of the cost of building a dedicated Europa lander. Such a launch would demand every ounce of Falcon Heavy’s performance, including a very long orbital coast.

These speculations could all be true. SpaceX might merely be doing what it always does, testing new engineering upgrades during operational missions. It will then be able to sell its rocket’s enhanced capability to all these customers.

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A home-made plane

6:04 pm

An evening pause: Another example of someone who decides he wants to do something, and then goes out and does it. This STOL (short take-off and landing) home-built plane, dubbed Draco, was apparently a big hit in the small plane community. Sadly, in September the plane was totaled (no injuries) during a take-off with strong cross winds (video here).

Hat tip Cotour.

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Big budget boost for ESA

8:49 am

The European Space Agency (ESA) received its largest budget increase ever, 20%, from its 22 member nations at a high level meeting yesterday.

The meeting also included commitments to remain a partner in ISS to 2030 and increase participation in Lunar Gateway. From the press release:

With worldwide partners, Europe will take its place at the heart of space exploration going farther than we have ever gone before – we continue our commitment to the International Space Station until 2030 as well as contributing vital transportation and habitation modules for the Gateway, the first space station to orbit the Moon. ESA’s astronauts recruited in 2009 will continue to receive flight assignments until all of them have been to space for a second time, and we will also begin the process of recruiting a new class to continue European exploration in low Earth orbit and beyond. European astronauts will fly to the Moon for the first time. Member States have confirmed European support for a ground-breaking Mars Sample Return mission, in cooperation with NASA.

ESA will help develop the commercial benefits of space for innovators and governments across the Member States, boosting competitiveness in the NewSpace environment. We will develop the first fully flexible satellite systems to be integrated with 5G networks, as well as next-generation optical technology for a fibre-like ‘network in the sky’, marking a transformation in the satellite communication industry. Satellite communications will join forces with navigation to begin satnav for the Moon, while closer to home commercial companies can access funding for new applications of navigation technologies through the NAVISP programme. ESA Ministers have secured a smooth transition to the next generation of launchers: Ariane 6 and Vega-C, and have given the green light to Space Rider, ESA’s new reusable spaceship.

Isn’t competition wonderful? ESA’s budget has been stagnant for years. Then SpaceX comes along and threatens its commercial market share while generating a new political will in the U.S. to renew its own space effort, and suddenly the European nations that make up ESA decide they need to do the same.

Much of the proposed program for ESA is very likely to happen, especially the commitments to a variety of astronomical and planetary missions. The agency’s commercial effort is also likely to happen, but whether it can happen fast enough to be competitive is questionable. As a government agency ESA’s track record in its effort to compete in the launch market has not been impressive. It took them far too long to accept the idea of reuseable rockets or the need to cut their costs drastically.

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A house in the forest

6:01 pm

An evening pause: They call this an off-grid house, but that really isn’t true. Though he isn’t linked to either an electric or water utility, pay close attention to the amount of technology he uses to make the house and living there functional and practical.

Nonetheless, it is fascinating and educational to see some of the tricks that people will do to live as they wish.

Hat tip Cotour.

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SpaceX ‘s decision to slash prices/provide reliable launch schedule upends smallsat industry

9:20 am

Capitalism in space: Apparently SpaceX’s decision in August to further slash its launch prices for smallsats while also establishing a regular launch schedule is causing major shifts in that industry.

From the first link::

The revamped smallsat rideshare program, the company announced late Aug. 28, will provide launch opportunities at least once per month starting in March 2020, at a cost of $1 million for a 200-kilogram smallsat.

From the second link:

With the new SpaceX price list, the cost of reaching low Earth orbit falls so dramatically “you should select the cheapest launcher even if it does not go exactly where you need it and then use propulsion to go where you need to be,” Henri said. “From a total system cost standpoint, that will make the most sense.”

This situation is comparable to the shifts that occurred in the ship business when its technology changed from sails to engines. Sailing ships generally did not sail on a schedule. Instead, they sat at port until they filled their cargo holds, then waited for favorable weather before sailing. Customers could only wait.

Once ships were powered this all changed. Ship companies established firm schedules so customers knew exactly when their cargo would ship. This also led to a reduction in the price of shipping.

SpaceX’s ability to reuse its first stage often and quickly is now allowing them to treat the Falcon 9 rocket more like a powered ship rather than a sailing ship. Rather than only launching when they’ve filled their cargo capacity, they can afford to launch on a regular and reliable schedule, allowing customers to jump on board at their own convenience.

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Explosion during Starship tank tests

3:19 pm

During tests today of SpaceX’s Starship Mk1 test prototype there was a sudden explosion, damaging the spacecraft. Below is a clip from today’s live stream showing the explosion.

They had been doing a variety of tank and venting tests for the past day. (The link includes a video showing the first pressurization test yesterday.)

The Mk1 (Mark 1) was being built with an initial hoped-for schedule targeting the first orbital flights by next year. No one took that seriously, and today’s incident reinforces that skepticism. At the same time, SpaceX has routinely recovered very quickly from its engineering test failures, treating them as opportunities for improving their designs. It is for this reason that most knowledgeable observers of the company also expected any delays to that target schedule to never be very extended.

Moreover, earlier this week SpaceX revealed that it had already decided not to fly this version and proceed to their next version. A Mk2 version is being built in Florida, so in Boca Chica they will proceed to the Mk3, with the goal to get to build toward the final operational version, what Musk labeled the Mk5. Based on past SpaceX policy, however, expect them to begin commercial flights with the earlier versions as they upgrade to the Mk5.

UPDATE: It appears the explosion occurred during a maximum pressurization test, which means they now have data telling them the limits of their tank design.

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Sierra Nevada updates Dream Chaser status, names its cargo module

11:01 am

Capitalism in space: In providing a detailed update in the construction of its reusable Dream Chaser mini-shuttle, Sierra Nevada yesterday revealed that it has named the small expendable cargo module that it will be attached to its Dream Chaser “Shooting Star.”

As part of Dream Chaser’s overall design, the vehicle itself does not contain the berthing port or solar arrays needed for it to perform its mission. Instead, those elements are mounted on what had been, before today, referred to as the cargo module – an element of Dream Chaser that now has a dedicated name: Shooting Star.

The name is a nod to the fact that it is the only part of Dream Chaser that is disposable and will burn up in the atmosphere as a streaking ball of fire – just like a shooting star.

The module itself, while containing the solar arrays and main propulsion elements for orbital maneuvering, will also be capable of transporting a large amount of internal cargo to the Station. It is also the part of Dream Chaser on which external cargo can be mounted for delivery and disposal of external elements that are no longer needed for the orbital outpost.

The article provides many details about the status of Dream Chaser that are worth reading, including noting its other potential uses beyond supplying ISS with cargo.

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Blue Origin wins protest against Air Force

11:03 pm

Capitalism in space: The Government Accountability Office (GAO) has sustained Blue Origin’s protest against the Air Force’s launch procurement rules that would have limited bidding on all launch contracts for the first half of the 2020s to only two companies.

In a “pre-award” protest, Blue Origin challenged the terms of a request for proposals (RFP) issued by the Air Force earlier this year for the National Security Space Launch (NSSL) Phase 2 Launch Service Procurement, which aims to award two contracts next year expected to cover 30 or more medium- and heavy-lift satellite launches the Air Force plans to conduct between 2022 and 2026.

Blue Origin, owned by Amazon.com founder Jeff Bezos, is one of four companies that submitted bids for the contracts by the Air Force’s Aug. 1 proposal deadline. The other three companies bidding for the contracts are Northrop Grumman and incumbents United Launch Alliance and SpaceX.

After submitting its bid, Blue Origin filed a formal protest with the GAO arguing that several terms of the RFP unduly restrict competition, are ambiguous, or are inconsistent with customary commercial practice.

The GAO agreed.“GAO sustained the protest, finding that the RFP’s basis for award is inconsistent with applicable procurement law and regulation, and otherwise unreasonable,” Patton said in the statement.

The Air Force’s plan here never made any sense at all. Why put a limit now on the companies that can bid on launches as far in the future as 2026? Why not instead allow all the launch companies, already certified by the Air Force, to bid when the time comes, thus increasing competition while providing the Air Force the most options?

This is good news for the entire American launch industry. It means they will all have the Air Force as a potential customer. It is also good news for the taxpayer, as the competition for business will certainly drive innovation and the lowering of launch prices.

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NASA expands list of companies certified to bid on lunar launch/payload contracts

10:54 pm

Capitalism in space: NASA today announced that it is expanding the list of companies eligible to bid on lunar launch/payload contracts from 9 to 14.

From the NASA press release:

NASA has added five American companies to the pool of vendors that will be eligible to bid on proposals to provide deliveries to the surface of the Moon through the agency’s Commercial Lunar Payload Services (CLPS) initiative.

The additions, which increase the list of CLPS participants on contract to 14, expand NASA’s work with U.S. industry to build a strong marketplace to deliver payloads between Earth and the Moon and broaden the network of partnerships that will enable the first woman and next man to set foot on the Moon by 2024 as part of the agency’s Artemis program.

…These five companies, together with nine companies selected in November 2018, now are eligible to bid on launch and delivery services to the lunar surface. [emphasis mine]

The added companies are SpaceX, Blue Origin, Ceres Robotics, Sierra Nevada, Tyvak Nano-Satellite Systems.

I have highlighted the most important word in this press release, which is most interestingly buried to make it as little noticed as possible. The addition of SpaceX to this list and the mention that the program has now added the ability to for the companies to bid on launch contracts means that NASA’s goal here is to create a situation where it can replace SLS with a bidded contract to private industry that will costs far less and can launch frequently and on time, features that SLS is completely incapable of, and SpaceX can provide easily and reliably. This analysis by me is further reinforced in that Boeing, the builder of SLS, was not included in this list, even though only last week that company offered SLS to NASA in a wider array of launch configurations, for exactly this purpose.

If NASA had made this fact too obvious it might upset certain people in Congress (I’m talking to you Richard Shelby R-Alabama) who are wedded to SLS and its wasteful pork spending in their home states and districts.

The fact remains however that eventually SLS is going to go away. The Trump administration appears very wedded to its Artemis program to get back to the Moon by 2024, and it is apparently discovering that to make that landing happen the administration needs better alternatives.

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