UK commits £30m to Shetland spaceport project

The UK government has announced a £30 million investment in SaxaVord Spaceport in Shetland as part of a national space strategy. The public commitment is expected to unlock a further £30 million in private investment for the facility located on the northern island of Unst.

SaxaVord is built on a former Royal Air Force base and holds regulatory approval for up to 30 rocket launches annually, making it the UK’s first fully-licensed spaceport. The combined £60 million package will fund the design and construction of two new launchpads and a second hangar.

Expansion plans and national strategy

Chief executive officer Scott Hammond stated that the project aims to develop long-term operations at the site. “We are building the spaceport for the thousandth as much as the first launch,” Hammond said.

Government officials stated that the funding is part of a broader £148 million space investment program across Europe designed to create jobs, strengthen national security, and reduce reliance on overseas launch facilities for satellites. Scottish Secretary Douglas Alexander noted that Scotland produces more satellites than any other country in Europe, adding that the investment puts SaxaVord in position to supply up to three-quarters of the continent’s orbital launch slots.

Launch partners and technical timeline

Two German aerospace companies currently have agreements to launch rockets from the Shetland facility. Rocket Factory Augsburg had planned a vertical orbital test flight from the site, but SaxaVord paused launch preparations in August after the company encountered an issue during its setup phase.

A second German firm, HyImpulse Technologies GmbH, intends to perform the second test flight of its SR75 suborbital launch vehicle from Shetland this year. HyImpulse recently secured over €50 million (£43 million) in new investment. Space Scotland head of programmes Derek Harris indicated that schedule adjustments should not be viewed as failures, noting that technical reliability and weather conditions must take priority.

SaxaVord confirmed it is holding negotiations with additional rocket companies. Heartland chief executive Lise Kaae, whose firm holds a majority stake in the spaceport through Wild Ventures, welcomed the UK government as an investor. The government’s investment remains subject to due diligence and final sign-off.

Background

SaxaVord Spaceport, located on the island of Unst in the Shetland archipelago, is designed to support vertical rocket launches carrying small commercial satellites into orbit. The UK Civil Aviation Authority issued the site its commercial spaceport license, granting legal authorization for orbital launch operations from British soil.