Rocket firm shelves plan for Highland spaceport

Orbex has been planning a spaceport facility in Sutherland

A rocket manufacturer is to "pause" construction of a spaceport in Sutherland to instead focus its launch efforts in Shetland.

Orbex announced it would now aim to launch its first rockets from SaxaVord Spaceport.

The company, which is based at Forres in Moray, said it would retain the lease on the Sutherland site and did not rule out developing it in future.

Highland and Islands Enterprise (HIE), which has provided millions of pounds of funding for the Sutherland project, said it was deeply disappointed by the decision.

The Sutherland Spaceport was granted planning permission in November 2020 and some initial construction work started last year.

But the SavaxVord Spaceport is at a more advanced stage of development, and is already seeing engine tests. There are hopes for launches from the site in 2025.

Orbex chief executive Phil Chambers said: "This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition."

"It’s a win-win for UK and Scottish space."

Orbex plans to focus on developing launch vehicles and associated launch services, but will retain the lease to build and operate its own spaceport in Sutherland, and says this will be "kept under continuous review".

SaxaVord Spaceport chief executive Frank Strang said: "Given the scale of their ambition, it makes sense for Orbex to start operations from SaxaVord Spaceport, which is already licenced and in a position to support their upcoming launches."

Both the UK and Scottish governments have invested heavily in supporting the development of the Sutherland spaceport.

In 2018 the UK Space Agency gave £2.5m to HIE to develop the facility, and the Scottish government and HIE together have invested nearly £9m in the project.

Highland and Islands Enterprise said in a statement: "We want to send a clear message to local people in north Sutherland that we are deeply disappointed at this turn of events.

"This announcement marks an unexpected change of direction from Orbex."

The statement added: "It’s important to stress that the company is a very significant player in the UK space sector and a key employer in Moray where it has over 150 skilled jobs at Enterprise Park Forres with plans to expand further.

"It also speaks to the strength of the regional space sector that innovative rockets will be both manufactured and launched into orbit from locations in the Highlands and Islands, and this move will strengthen SaxaVord Spaceport's commercial proposition.

"What is less clear is the impact that Orbex’s decision will have on Sutherland."

Billionaire couple

Plans for the spaceport in Sutherland have been vigorously opposed by Scotland's richest man, Anders Holch Povlsen, founder of the Asos clothing chain, and his wife Anne.

The billionaire couple own land nearby and raised concerns about its impact on protected areas.

Their company Wildland Ltd previously invested £1.5m in the rival Shetland project, while at the same time taking legal action against Highland Council's planning approval for the Sutherland spaceport

However in 2021 a judge said he was not persuaded that the local authority had erred in law.

The rival Shetland development, while further advanced than the Sutherland project, has itself suffered setbacks.

In August, a rocket engine exploded during a test firing at SaxaVord.

German rocket manufacturer RFA , which carried out the test, later said the blast had caused some damage to the launch site structure.

RFA said, as a result, it would have to delay its plans to carry out the UK's first vertical rocket launch into space.

Analysis - by Laura Goodwin, technology and innovation correspondent

The Sutherland spaceport site was one of a only few on the UK mainland that would eventually have vertical launch capability giving it strategic importance within the European market.

However, in terms of progress SaxaVord on the island of Unst was out in front with its launch platforms and relevant licences from the CAA already in place.

Part of the reason for that progress was private finance.

One of its major investors and main stakeholders is Danish billionaire Anders Holch Povlsen.

The fashion tycoon is the largest landowner in the UK, owning several vast Highland estates.

Some of his land was located near the site of the Sutherland spaceport, and his company took legal action against Highland Council’s decision to approve the site.

The ability to get small satellites into space is big business and builds on an already thriving space industry.

There are currently four other proposed spaceports planned for Scotland, including SaxaVord, but this move may raise further questions about how many will actually be viable.