Rocket Manufacturer Shifts Focus from Sutherland to Shetland Spaceport

Rocket manufacturer Orbex has announced a decision to “pause” the construction of its spaceport in Sutherland, opting instead to concentrate its launch operations in Shetland. The company stated its intention to conduct its initial rocket launches from SaxaVord Spaceport. Orbex, headquartered in Forres, Moray, confirmed it would retain the lease for the Sutherland site, leaving open the possibility of future development. Highland and Islands Enterprise (HIE), which has contributed millions of pounds in funding to the Sutherland project, expressed profound disappointment regarding this development. The Sutherland Spaceport had secured planning permission in November 2020, and preliminary construction activities commenced last year. In contrast, the SavaxVord Spaceport is in a more advanced stage of development, with engine tests already underway. Launches from this site are anticipated in 2025. Phil Chambers, chief executive of Orbex, commented: “This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition.” He added, “It’s a win-win for UK and Scottish space.” Orbex intends to prioritize the development of launch vehicles and associated launch services. However, it will maintain the lease for building and operating its own spaceport in Sutherland, a matter it states will be “kept under continuous review.” Frank Strang, chief executive of SaxaVord Spaceport, remarked: “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 made substantial investments to support the establishment of the Sutherland spaceport. In 2018, the UK Space Agency allocated £2.5m to HIE for the facility’s development, and the Scottish government, in conjunction with HIE, has collectively invested nearly £9m in the initiative. Highland and Islands Enterprise issued a statement conveying: “We want to send a clear message to local people in north Sutherland that we are deeply disappointed at this turn of events.” The statement characterized this announcement as “an unexpected change of direction from Orbex.” The statement further noted: “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.” HIE also highlighted that “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.” Concluding its statement, HIE acknowledged: “What is less clear is the impact that Orbex’s decision will have on Sutherland.” The proposed spaceport in Sutherland faced strong opposition from Anders Holch Povlsen, Scotland’s wealthiest individual and founder of the Asos clothing chain, and his wife Anne. The billionaire couple, who own land in the vicinity, voiced concerns regarding the project’s potential effects on protected areas. Their company, Wildland Ltd, had previously invested £1.5m in the competing Shetland project, concurrently initiating legal proceedings against Highland Council’s planning approval for the Sutherland spaceport. Nevertheless, in 2021, a judge determined that the local authority had not erred in law. While more advanced than the Sutherland project, the rival Shetland development has encountered its own difficulties. In August, a rocket engine detonated during a test firing at SaxaVord. RFA, the German rocket manufacturer responsible for the test, subsequently reported that the explosion had caused some damage to the launch site structure. Consequently, RFA indicated it would need to postpone its plans for conducting the UK’s inaugural vertical rocket launch into space. The Sutherland spaceport site was one of only a few locations on the UK mainland projected to eventually possess vertical launch capability, granting it strategic significance within the European market. However, SaxaVord, situated on the island of Unst, had progressed further, having already established its launch platforms and secured the necessary licences from the CAA. This progress was partly attributable to private financing. Danish billionaire Anders Holch Povlsen is among its principal investors and major stakeholders. The fashion magnate is the UK’s largest landowner, possessing several extensive Highland estates. Some of his property was located near the Sutherland spaceport site, and his company pursued legal action against Highland Council’s decision to approve the location. The capability to deploy small satellites into space represents a substantial commercial opportunity and builds upon an already flourishing space industry. Currently, four other proposed spaceports are planned for Scotland, including SaxaVord. However, this recent development may prompt further questions regarding the actual viability of these ventures.