Rocket company Orbex has raised £23 million of new investment, the bulk of which from the UK government, as it races to try and be the first British company to carry out an orbital launch from a domestic spaceport later this year.
It comes just weeks after the Scottish highlands-based company decided to pause construction of its own spaceport on mainland Scotland and instead launch its first rockets from SaxaVord spaceport on the Shetland isle of Unst.
Today, Orbex said the £20 million of government funding will help it continue its testing programme and accelerate further development of its 'Prime' low-carbon, two-stage rocket ahead of an expected launch towards the end of 2025.
In November, Orbex bagged €5.6 million of funding from the European Space Agency for the development of its 190-metre 'micro-launcher' rockets.
Orbex CEO Phillip Chambers noted that the government investment was a first of its kind investment by the UK government, and noted that it was only the start of the company's Series D fundraising round, which remains open.
"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," he said.
The company highlighted that it has two patents covering various parts of its rocket technology, with its rockets powered by renewable bio-fuel, which allows the rocket to reduce carbon emissions significantly compared to other similarly sized rockets being developed elsewhere around the world.
Chambers said the Orbex is "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".
UK technology secretary Peter Kyle said the government taking a stake in the rocket company meant it was "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".
He added that supporting the 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".
Also investing in the funding round were Denmark's Export & Investment Fund (EIFO), Octopus Ventures and private investor Sohaib Abbasi, the former chief executive of US software company Informatica and a senior VP at Oracle Corporation.
EIFO said it was a common effort to build European launch capacity in Scotland, while Octopus Ventures, which has backed Orbex since 2020, said it was the UK government investment was an "incredible commitment to the UK space industry".
Last autumn the ESA said "several" maiden launches of new rockets are close in Europe, with state and regulatory support in the pre-launch period being "critical" for companies with large teams, many facilities and operations as they have no launch system generating revenue yet.