European rocket startups team up to send letter to ESA outlining their priorities

In a surprising joint action, six European rocket startups have sent a detailed letter to the European Space Agency (ESA) outlining several recommendations about policy required by these rocket startups in order for their industry to prosper.

The companies involved were HyImpulse, Latitude, MaiaSpace, Orbex, Rocket Factory Augsburg and The Exploration Company. The letter’s recommendations were wide-ranging and appeared focused on getting ESA to free up the industry from traditional European red tape.

  • Provide funding in the range of €150 million to a limited number of rocket companies, not all. The companies say that funding will make it possible for the winning companies to raise another €1 billion in private investment capital. Limiting the number of companies getting awards will also force competition and achievement. The awards should also be granted only after specific milestones are achieved, not based on promises of eventual achievement.
  • Ease access to launchpads both at French Guiana and in Norway and the United Kingdom. Right now French rule-making at French Guiana is hindering that access, and ESA rules about launches make it harder to use the new commercial spaceports in Norway and the UK.
  • Red tape must be reduced. For example, ESA should not set rules on the size of payloads, but give companies “the freedom to determine their payload capabilities, allowing market dynamics to drive innovation rather than imposing artificial requirements.”

That the German rocket startup Isar Aerospace did not sign this letter is interesting, especially since it is now only a few months from completing its first orbital test launch of its Spectrum rocket from the new spaceport in Andoya, Norway. It also has a twenty-year lease for that launchpad.

It is also interesting that the letter did not include the newly proposed orbital spaceport Esrange in Sweden. That launch site has been used for decades for suborbital tests. It is now attempting to make itself available for orbital tests as well. Its interior location however is likely the reason these rocket companies left it out. Too many issues for them to consider launching from there.

French rocket startup wins $16 million grant from French government

The French rocket startup Latitude has been awarded a $16 million grant from French government for development work on its proposed two-stage Zephyr orbital rocket, which is targeting 2025 for its first test launch.

Nor is this grant the only money the company has raised.

In January, Latitude announced that it had closed its Series B funding round, raising $30 million. In March, the company was one of four companies selected to receive a share of €400 million [$427 million] in subsidies from the French government. This funding is, however, only fully unlocked when the company completes its inaugural flight of Zephyr.

Though Latitude has obtained some private investment capital, it appears it is mostly relying on government funds. Under these conditions, it is unclear whether the rocket startup will be able to compete not only with the other new European rocket startups but with the rest of the world. Government funding is usually not well tied with profit or cost efficiency, and thus the company will have less incentive to develop a competitive rocket.