The UK government has invested £20 million in Orbex, a Scottish spaceflight startup aiming to challenge Elon Musk’s SpaceX in the European market. The investment, announced at the European Space Conference in Brussels, forms part of a £23 million funding round, which also includes backing from Denmark’s Export & Investment Fund, Octopus Ventures, and former Informatica CEO Sohaib Abbasi.
Orbex is developing small and medium-sized rockets that use bio-propane, a renewable fuel, making them a more sustainable alternative to traditional launch systems. The company’s first rocket, Prime, is set for its first launch by late 2025.
UK’s Space Ambitions
The UK government has ambitious plans to develop sovereign space capabilities and is actively investing in the sector. In addition to its stake in Orbex, it holds a share in Eutelsat OneWeb, a satellite internet provider formed after a 2023 merger.
Tech Minister Peter Kyle described the investment in Orbex as an opportunity to "turbocharge the country’s position in the space sector."
Orbex CEO Phillip Chambers added that this funding would "pave the way for our first launch this year and help us develop a larger rocket for the European Launcher Challenge."
Competing with SpaceX and the European Microlauncher Market
Orbex is one of several European companies developing microlauncher rockets, which are smaller, more affordable launch vehicles designed to carry lightweight satellites into low-Earth orbit (LEO). Other competitors in this space include:
- Skyrora (UK) – Plans to launch satellites from British soil later this year.
- Rocket Factory Augsburg (RFA, Germany) – Targets a UK launch in 2025.
RFA CEO Stefan Tweraser emphasized the importance of developing sovereign European space capabilities, arguing that Europe needs to establish commercial and regulatory leadership in the industry to compete with US firms like SpaceX and Rocket Lab.
A University of Exeter study (2021) found that Orbex’s Prime rocket produces 96% fewer carbon emissions than comparable launch systems that use fossil fuels, positioning it as a greener alternative for satellite launches.
With its first launch planned for late 2025, Orbex aims to solidify the UK’s position as a major player in the global space race. The government’s investment signals a strong commitment to growing the domestic space industry, paving the way for regular, UK-based rocket launches in the coming years.
