Written evidence submitted by HyImpulse UK Ltd (SSS0011)

HyImpulse Scottish Space Inquiry Evidence

The Scottish Space Industry

Scotland has an incredible space industry which spans multiple areas of activity from the Satellite manufacture capital of Europe in Glasgow, the Space data capital in Edinburgh to the emerging centres for small satellite launch in the Highlands and Islands.

There are few places in the world where such a breadth of space activity occurs in such a small geographic area, supported by world class universities, research centres and business development agencies.

It is the geography of Scotland, located as it is, at high latitude, with coastlines facing outwards into relatively traffic free areas of the North Atlantic which makes it ideal for the launch industry. HyImpulse is a launch service provider for small satellites and a member of the Space Scotland Industry group. This submission will provide evidence to the inquiry in relation to the Scottish launch industry which could bring Scotland into a new chapter of national space capability.

Introduction to Small Satellite Launch and the opportunity for Scotland and the UK

The defining trait of the space industry in the recent decades is the rise of ‘NewSpace,’ a business environment increasingly dominated by private, commercial players. Fuelled by lower costs of technological development and reduced barriers to entry, a democratization of the space industry is underway. Significant drivers leading this revolution are the rapid growth of small satellites (< 500 kg) in Low Earth Orbits (LEO) and downstream services associated with them such as 24x7 Earth Observation (EO), satellite-based internet and Internet of Things (IoT) connectivity. Yet the main bottleneck towards the development of this estimated $1T dollar industry remains the limited availability of launch services.

Demand is growing for access to LEO by small satellites in the sub 500 kg category. In the years 2020-2022 alone, the industry saw the launch of 76% of smallsats launched the last decade[1]. This trend is expected to continue as an estimated >10000 small satellites will require launch within the next decade resulting in an average required launch of >1840 satellites/year. Figure 1 highlights that the historical projection in 2019 has already been exceeded as of 2022[2],[3].

The total market value for small satellite-based space sector is estimated at $84.2 billion in (2022-2031) with the Smallsat launch service revenue comprising $28.4 billion of this, which results in a CAGR of ~14% compared to the $7.6 billion in the last decade (2012-2021)[4]. Additionally, the consensus is that ~ 75% of this market will be purely commercial in nature, meaning that this market is freely accessible.

The rapidly increasing market size is but one driving factor for the demand in small satellite launch service. Another is the absence of dedicated low-cost small satellite launchers resulting in delays (Figure 2) to small satellites launching, as they must wait for the primary payload on an affordable ride-share mission. By reducing these delays, a satellite company can save more due to the average monthly budget burn rates for salaries, rent and other fixed costs in waiting times.

Figure 1 Smallsat launches per year (historical and forecast for the next decade)

Figure 2 Delay time to launch for smallsats between 2015-2019, Smallsat Launch Delays www.brycetech.com

The UK and particularly Scotland are well placed geographically to provide access to high inclination polar and sun synchronous orbits which are highly prized for Earth Observation missions. Vehicles launching from high latitudes can achieve a polar orbit expending less fuel or carrying heavier payloads. It is an advantage for the launch safety case for vehicles to launching over the sea through low air and marine traffic areas. With its higher latitudes and maritime geography Scotland is a location well suited for this industry compared to other countries in Europe.

This is a time where Europe no longer has domestic launch capability. Creating an opportunity for the UK and Scotland to fill the void by being the global destination for small launch. Space is an expanding field with some very exciting applications such as space based solar power, asteroid mining and in space manufacturing under development. Concentrating skills, facilities and prestige in the UK and Scotland will create the conditions where strong and innovative companies can emerge to take advantage of these new markets and sow the seeds for the UK as a more visibly space fairing nation.

HyImpulse Past, Present and the future in Scotland

HyImpulse plans to expand operations in Scotland to deliver 20-30 launches per year by 2030 with SaxaVord as our primary launch site. Beyond 2030 the forecast market demand and accessible share could support over 50 launches per year, a significant opportunity for the UK economy. The higher launch cadence would require expansion of the current planning limits for UK Spaceports yet some of this number could also include vehicles exported for launch from more equatorial latitudes to reach orbits less accessible from the UK.

Figure 3: Left: Artists Impression of HyImpulse’s Small Launcher 1 (SL1) on the launchpad. Right Characteristics of Sounding Rocket (SR75) and Small Launcher 1 (SL1)

HyImpulse shall seek to establish a UK based AIT facility which will be the primary location for launch vehicle production. Locating this facility in Scotland will present a significant commercial opportunity for local supply chain as well as for professional services and academic researchers with an interest in aerospace and manufacturing development.

By 2030 it is HyImpulse’s goal to achieve carbon neutral operation with manufacturing powered by renewable energy and paraffin fuel propellant synthesised from sustainable feedstocks. The key enabler to this vision is access to a national grid awash with renewable energy, a factor for locating in Scotland with considerable progress made towards renewable energy supply. With onshore and offshore wind now also achieving excellent cost of energy compared to other sources, this does not have to mean a higher cost to our customers for a sustainable service.

The first step in this UK Launch Roadmap will be the launch of HyImpulse’s SR75 Sounding Rocket Demonstrator. This launch is targeted for Q4 2023/Q1 2024 and would be the largest rocket to be launched vertically from the UK to date.

In August 2023 HyImpulse completed motor qualification and received the first Large Rocket Permission under the Air Navigation Order 2016 form the CAA.

One of the questions in the call for evidence is “What opportunities does the Scottish space sector have for international collaboration?” HyImpulse will connect with domestic, European and global small satellite customers. Our supply chain will bring together world class technology from the UK, Germany, Greece, Switzerland, Ukraine, Norway and the Netherlands. (Supply Chain, Customers domestic, European and beyond. Also targeting responsive launch which will allow satellites to be placed into orbit within days of contract, a capability not available anywhere.)

Figure 4: HyImpulse team photo with Sounding Rocket (SR75)

HyImpulse Technology Description

The key advantage and USP of HyImpulse is hybrid propulsion. In hybrid propulsion, there is a separation between the propellants (similar to liquid rockets but unlike solid rockets) and the propellants are in different states of matter (unlike both solid and liquid rockets),Error! Reference source not found.. Due to this unique characteristic, a disastrous mixture of fuel and oxidizer is never possible resulting in an accident proof system with a TNT equivalence of zero. This is the highest degree of safety possible when compared to competition that use a liquid or a solid propulsion system. This results in significant cost savings to handling and operational costs which would be passed on to the customers through the game-changing low launch prices.

Figure 5: Schematic of different types of chemical propulsion systems

HyImpulse initiated the development of its hybrid rocket motor based on paraffin-fuel and liquid oxygen in 2019, drawing upon years of experience in hybrid propulsion basic research conducted at DLR Lampoldshausen and at the alma mater of the founding members, University of Stuttgart. The propellants used in our hybrid engine are low-cost and green (environmentally safe) – HPP (High Performance Paraffin - commercially available candle wax with proprietary additives) as fuel and Liquid OXygen (LOX) as oxidizer. Developed and carefully calibrated with more than hundred test bench firings of the engines and qualified with 5 flight tests of the rockets, this proprietary fuel formulation delivers the highest performance (specific impulse) of hybrid propulsion developed so far, a performance comparable to kerosene fuel in liquid rockets, while having half the complexity and being robust and resilient to failures. These developments won HyImpulse, the topmost accolade in the propulsion community - the AIAA Hybrid Rocket Best Paper Award[5].

This established competence in hybrid propulsion has enabled a rapid technological development of the 75 kN Hybrid Paraffin-LOX powered engine (HyPLOX75). This most critical component of the rocket is already at a mature stage of development. Full scale testing commenced at DLR Lampoldshausen in September 2020 and has seen 17 subsequent flight weight motor firings at our Scatsta test facility in Shetland. The latest round of testing in August 2023 successfully qualified the motor, ready for the first sounding rocket launch.

Beyond the propulsion system, HyImpulse are also delivering an exceptionally lightweight rocket structure utilising carbon fibre composite material structures throughout. This includes the liner-less CFRP, LOX compatible propellant tanks, which is a significant achievement, unlocking next generation lightweight structures.

Figure 6: HyImpulse Tests at Scatsta Shetland

While the hybrid system eliminates the need for fuel system pumps and the associated costs, the oxidiser system will feature high performance turbo-pumps made from 3D printed components, reducing the costs and lead time of complex geometries and pipework with the latest, cutting edge additive manufacturing techniques. The third stage motor will be fed by an electric powered turbo-pump, reducing the mass of the upper stage and achieving high levels of performance.

While vertical propulsive landings are the future for large launchers, the complexity and weight which this adds to a small launcher is disproportionate to the benefits. However, HyImpulse plans to operate a re-use and refurbishment lifecycle which will see huge benefits to the cost of launch.

National Space Strategy and Scottish Space Strategy

The Call for Evidence asks, “To what degree do the UK and Scottish Governments’ space strategies have the right priorities for the Scottish space sector?”

UK and Scottish space strategies both recognise the opportunity that the small satellite launch sector offers to the economy in terms of revenues and jobs. “Capture the European market in commercial small satellite launch” is #1 on the 10-point plan in the National Space Strategy and “Scottish Launch Programme” is #3 in the list of strategic actions in “A strategy for Space in Scotland”.

It is clear that both Scottish and UK governments see launch as a priority and the UK contribution to the Commercial Space Transportation Systems (CSTS) programme within ESA is higher than it has ever been. Yet it is still the case that the UK’s contribution to launch programmes in ESA lags behind that of France, Germany and Italy by a considerable margin.

The UK Space Agencies “Corporate Plan” spells out in more detail which resources they will allocate to the ten NSS action points. With launch being new territory for the UK it is perhaps not surprising that the resources allocated to this area is considerably lower than others. Yet progress proceeds in the correct direction and the initiatives pursued by the UK Space Agency appear well targeted and well considered.

Figure 7: UKSA funding for the National Space Strategy

While “A strategy for Space in Scotland” is a positive document which sets out good priorities, what it lacks is a set of policy interventions or resources with which to support these priorities. It would be an encouraging step to see the Scottish Government engaging further with this strategy to accelerate the goals of the Scottish space industry.

Launch and spaceport licensing

The advent of the Space Industry Act 2018 & Space Industry Regulations 2021 puts the UK ahead of other nations in Europe by establishing the legal framework within which the industry can operate. The first challenge for this system came with the Virgin Orbit launch and its effectiveness will be challenged and tested considerably over the next 5 years. The CAA have taken the challenging mantle of administering the licensing system and despite some undue negative press following the Virgin Orbit launch, have been delivering on their mandate. The real challenge for industry and the CAA however will be to achieve efficiency in the application of the licensing system for regular launches. The challenge to the CAA will be to see beyond their role to ensure safety of the launch but also to ensure that this can be achieved without disadvantaging the UK with respect to other licensing regimes. Efficiency as well as safety must be a priority for the success of this commercial launch industry to be competitive on the global stage.

One aspect of the licensing process which can be improved is to consolidate the number of separate submissions required to different stakeholders and government bodies. If, for example, the marine license can be made part of the space port or launch operator license, then duplication of effort can be reduced.

Establishing Spaceports in Scotland

The Call for Evidence asks, “What can the UK and Scottish Governments do to support the establishment of Scottish spaceports and help them to succeed?” This section will provide HyImpulse’s perspective on this. HyImpulse is currently aligned with SaxaVord Spaceport based on Unst, Shetland.

The Scottish and UK Governments have already done a lot to support spaceports in Scotland. The funding which has been publicly reported shown in Table 1.

Considering that in 2021 it was reported that the cost of the Sutherland spaceport was to be £17.3M[6], it appears as if both Sutherland and Prestwick Spaceports have received significant levels of government support. It is unclear why SaxaVord is the exception to this generous public support.

Table 1: Summary of reported public funding for Scottish Spaceports

This distribution of public funds to support spaceport infrastructure is surprising since the main conduit for inward investment from launch service providers looking either to just conduct launches or looking to establish manufacturing in Scotland, is SaxaVord Spaceport. Prestwick Spaceport is suitable for horizontal launch only, there are significantly fewer companies pursuing this in Europe and many at early stages of development. Sutherland Spaceport is operated by a single launch provider, with no stated plans for additional capacity available to other launch service providers. Currently SaxaVord spaceport also has planning permission for more launches than Sutherland and Prestwick combined with 30 launches to 12 each.

The small launch market is dominated by SME’s and start-ups which must raise private capital. Few of these companies have spare capital to spend upon the ground infrastructure in addition to the launch vehicle development. Instead, many are seeking to partner with launch sites which are self-funded either state backed, private or a mixture. Other spaceports in Europe include: AndØya, Azores, Esrange, GOSPA.

Given that there are many players in the small launcher market, the challenging nature of achieving not just technical success as well as commercial success and the market dominated by vertical launch providers, it should be clear that a commercially open vertical launch spaceport is a key component of the UK’s ability to robustly serve the global market for small satellite launch.

There appears to be an imbalance in the funding awarded to spaceports in Scotland which the UK and Scottish Governments could address to accelerate the progress of the industry. This would be best achieved by a targeted mixture of direct grant awards for infrastructure building projects and through launch contracts from the UK Space Agency to launch payloads for institutions such as the UK Space Agency or MOD.

Investment in future skills

Rocketry and launch are areas in which the UK has not expended significant resources since the 1970s and experienced personnel or graduates with specific training in this area are hard to find in the UK. The UK also lags behind the US, Germany, France in the national space agency funded rocketry challenges which are of a very high calibre in similar sized economies.

However, the UK does have a very good heritage in Aerospace in general with many people and research centres, companies and people with skills in turbomachinery, airframes, composite materials, advanced manufacturing and a host of other related topics.

While it is certainly unwelcome that it is necessary to incur costs and administration now to hire people from the EU, and elsewhere, the skill sets required by the rocketry industry are on all of the eligible lists for visa sponsorship and the minimum salary requirements are not prohibitive to employing skilled people from overseas who are willing to move.

Policy Actions

-          Address the public funding imbalance between Scottish/UK spaceports which are at an advanced stage in planning and construction. A suggested approach is to offer a mixture of competitive grant funding and government launch contracts.

-          Increased funding to support UK Space Agency initiatives and continue to increase funding and investment for space transportation towards the level of other leading European Space Nations

-          Continue to explore solutions to ensure the efficiency of the UK’s future licensing regime for launch operations, seek industry feedback and adapt.

September 2023