The startup snapping at SpaceX's heels OHB

GERMAN AEROSPACE STARTUP RFA OFFERS STIFF COMPETITION FOR SPACEX

Munich-based aerospace company OHB has laid out plans to build a rocket that can transport satellites into Earth’s orbit far cheaper than its competitors in order to be able to corner a future market.

From 2030 onwards the team hopes to be launching their rockets from platforms in the North Sea or the Azores on a weekly schedule.

Done through the company’s new startup, Rocket Factory Augsburg (RFA), the company hopes to offer a cheaper and more efficient service than its US counterparts, such as SpaceX.

With take-off costs of around $3 million (€2.48 million), RFA offers its services for significantly below the global going rate. The cost per kilogram of payload equated to roughly $2,500, coming in at three-to-four times less than its main rivals.

The new startup has recently gone through a round of financing, which was announced at a press conference on Thursday.

The aim of the fundraiser is to garner $25 million (€20.6 million) in new capital.

“We want to build the best and cheapest rockets and micro launcher,” said founding investor Hans Steininger in a video conference.

In the meantime, the startup has begun building prototypes of its engine and is determined to make swift progress to corner market shares.

Small and inexpensive vehicles currently play a large role in the use of space for private services providers.

“New space” - the scramble for the commercialisation of spaceflight and tourism -

has opened up a billion-dollar market which is attracting more and more investors.

Venture capital funds worldwide invested a record $15.7 billion in 252 space companies in 2020, of which $9.4 billion went to US companies.

The Augsberg startup currently employs 90 people and belongs to a group of three startups looking to expand into the spaceflight market.

They are hardly alone in their quest, with dozens of similar startups across the globe engaging in similar projects and are one of three similar businesses in Germany alone.

Marco Fuchs, CEO of OHB, said: “We do not want to leave this lucrative market to US companies. That is why we have set up the Rocket Factory with two young space enthusiasts and given the new company a major boost in the form of expertise and capital. We will be able to maximise the cost advantages of series production because we will be building rockets just like cars. Due to the very high demand for investment opportunities in this promising market, we are now opening up the possibility for further selected investors to participate in the growth of the Rocket Factory.”

Investors and officials involved in RFA claim its new technology remains cheap, clean, and makes use of superior engine technology and works with levels of precision that leave its competitors behind.

Jörn Spurmann, COO of RFA, said: “We offer a delivery service for the last mile. Unlike many others, we deliver satellites to different orbits with pinpoint accuracy using our unique orbital stage. This creates cost advantages. And because we also produce at the lowest cost, we create unrivalled value for money.

The goal of 50 take-offs per year by 2030 remains RFA’s top priority, equating to nearly one per week.

The startup hopes to begin launching in late 2022 to early 2023 and will attempt to gain 20 to 30 take-offs per year in its initial phase.

The RFA rocket has nine engines in the first three stages and can carry up to 1,300 kg into space. The rocket is supposed to deliver the satellites with pinpoint accuracy.

“With the staged combustion technology, we are a technological trendsetter because it is more powerful, more efficient and cleaner than most launch vehicles currently on the market,” Dr. Stefan Brieschenk, Chief Operations Officer at RFA said.

OHB was formed 40 years ago and has been listed on the stock exchange for 20. The group recorded over $1 billion (€825 million) in sales for 2020 and saw continued growth despite the pandemic.

However, the company recently suffered a setback when it was not considered for a further contract supplying Galileo satellites for the European Union.

The €1.21 billion deal was instead handed to rivals Airbus and Thales Alenia Space. n By Ash Jones, Visit: www.ohb.de