Scotland-based space firm Orbex gets £20m UK Government funding boost

A Scotland-based spaceflight firm has received a £20m funding boost from the UK Government.

The UK Government announced it has also become a shareholder in Orbex, based in Forres near Inverness, as part of its Series D fundraising.

Company chiefs say the funding will go towards developing Prime, a 19-metre rocket designed to transport small satellites into orbit, which is expected to launch by the end of 2025.

Department for Science, Innovation and Technology (DSIT) secretary Peter Kyle announced the investment at the 17th European Space Conference in Brussels.

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 space industry.

The Rt Hon Peter Kyle MP, secretary of state for science, innovation and technology, 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 £20m 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.”

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.

The company 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.

With Orbex in the midst of an intensive testing programme, the funding will accelerate further development of Prime.

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 £23m.

Erik Balck Sørensen, CIO at Export & Investment Fund of Denmark (EIFO), said: “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 announced it was pausing construction of a “carbon neutral” spaceport in Sutherland in December 2024, with chiefs saying it will instead launch from the rival SaxaVord Spaceport on the northern tip of the Shetland Islands.

The spaceport on the north coast of the Scottish mainland received a reported £14.6m in investment from the public sector over several years, including from the Scottish Government and Highlands and Islands Enterprise (HIE).

Chiefs said it wanted to shift its focus from building the site to developing small and medium-sized rockets but that the lease on the site would be retained.

Initial construction in Sutherland began last year after the firm was granted planning permission in 2020.