UK Government Invests in UK Orbital Launch Capability for First Time

The UK Government has invested £20 million in spaceflight company Orbex as part of its Series D fundraising.

The investment comes as the UK government vows to develop Britain’s mission to regularly launch into orbit from its shores using UK-manufactured rockets, supporting growth in its expanding space industry and attracting investment from across the globe.

Orbex is the only UK-owned launch services company in the UK. It is developing both small and medium sized space rockets and initial launch operations will take place from SaxaVord Spaceport in Shetland.

Technology Secretary Peter 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 £20 million 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.”

With Orbex in the midst of an intensive testing programme, the funding will accelerate further development of Prime, a 19-metre long, two-stage rocket designed to transport small satellites into Low Earth Orbit. Orbex expects to launch its first Prime rocket towards the end of 2025.

Phillip Chambers, CEO 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.”

In addition to the UK Government, the Export & Investment Fund of Denmark (EIFO), Octopus Ventures and private investor Sohaib Abbasi have also contributed to Series D so far. The total raised currently stands at £23 million.

Erik Balck Sørensen, CIO at Export & Investment Fund of Denmark (EIFO), commented: “At EIFO we are thrilled to get the UK Government on board in our common effort to build European launch capacity in Scotland.“

Simon King, Partner at Octopus Ventures, said: “From the moment we first backed Orbex in 2020, we knew they would go on to achieve amazing things - from their innovative rocket development, to their market leadership of UK launch services. It’s exciting to see the UK Government endorse the team’s hard work through this incredible commitment to the UK space industry.”

Sohaib Abbasi said: "Orbex is pioneering the way as the first spaceflight company to launch from UK soil. With a skilled team at the helm, Orbex is poised to become a leader in Europe's expanding space launch services sector. Although it's still the early stages of this thrilling industry, the future looks incredibly promising."

Orbex has two active patents in a number of European countries and the United States covering various parts of its rocket technology. It is powered by bio-propane, a renewable bio-fuel, which allows the rocket to reduce carbon emissions significantly compared to other similarly sized rockets being developed elsewhere around the world.

Phillip Chambers concluded: “With testing underway and launch now in our sights, Orbex’s Series D funding round remains open. We are actively speaking to investors for the second tranche of funding to be announced later this year and would encourage those wishing to be part of the journey to get in touch”.

For further information, please contact Grayling:

orbex@grayling.com

Rebecca Kane: +44 (0) 7852 598 453

Niamh Frizzell: +44 (0) 7921 352 847