NWF0044
Written evidence submitted by Orbex
Introduction to Orbex
Orbex is the only British-owned space launch services company designing and building rockets in the UK, with headquarters and production facilities based in Scotland. We are strengthening the UK’s sovereign space capability, creating high-value jobs, and delivering sustainable, flexible, and cost-effective satellite launch solutions from British soil. Our first commercial launch is planned for 2026.
The global demand for launch services is rising. At present, the market is dominated by America’s SpaceX and there is a waiting list, often of 1-2 years. Orbex has the potential to meet much of this demand and to be the premier launch solution for Europe, taking custom from state and private sector organisations across the continent and beyond. We have the potential to further position the UK as a competitive and sovereign spacefaring nation, with implications for enhanced national security and resilience.
Headquartered in Moray, Scotland, with a subsidiary in Denmark, Orbex employs over 240 highly skilled professionals. We have secured £129 million in funding from private and institutional investors, including the UK Government, Scottish National Investment Bank, and leading European venture capital firms. Our engagement with the UK Government has been particularly positive over the previous 12 months and we are very excited to have formed a new strategic partnership with DSIT, following investment of £20million in our Series D funding round.
To be clear: going forward, Orbex will have a bright future as a self-sustaining company contributing to the UK’s foreign earnings. Public funding is necessary in this pre-launch phase though. This is partly so we can keep up with potential rivals being given state support by their home countries elsewhere in Europe. It is also because of the blunt fact that globally, private investors tend to be wary of bearing 100% of the risk inherent in early-stage launches by a new player. While Scotland remains a key base of operations - with significant support from the Scottish Government and Highlands and Islands Enterprise - Orbex operates across the UK supply chain. In 2024, 50% of total company spend was placed with UK-based suppliers, with 20% of that from Scottish-based suppliers. This reflects a growing nationwide industrial footprint that will continue to expand as Orbex ramps up launch cadence and manufacturing.
Orbex operates over 6,650 square metres of facilities in Forres, with a dedicated engine testing site at Kinloss, three miles away. The company employs more than 140 staff in Moray, the majority of whom are in highly skilled, highly paid roles.
Plans are also underway to develop a new 10,000 square metre manufacturing facility to support higher production volumes, expected to generate several hundred additional jobs. These developments will enhance the UK’s sovereign launch capability while increasing inward investment and export potential.
Our portfolio of launchers will help to deliver much needed launch capacity in the UK and Europe:
1. Prime: Laying the Foundation for UK-Based Launches
2. Proxima: Unlocking the Next Stage of Growth
Orbex’s long-term strategy centres on the development of Proxima, a larger, next-generation medium-sized vehicle to launch heavier payloads and support more ambitious commercial, scientific, and defence missions. Success here will result in:
Notably, Orbex is one of only five private companies in Europe—and the only British one—with a contract to launch European Space Agency (ESA) satellites. This strengthens the UK’s role in the European space ecosystem, enhances export potential, and offers the promise of us generating greater returns for the UK Exchequer.
Orbex is committed to expanding our national footprint, competing globally, and playing a central role in the UK’s long-term space strategy.
Financing Challenges for UK Space Launch: The Case for Long-Term, Strategic Investment
Engagement with financial institutions
Orbex’s journey through the UK financing landscape underscores the broader challenges faced by pre-revenue, capital-intensive businesses in the UK space launch sector. Despite being at the forefront of European launch vehicle development, Orbex has struggled to access the scale and type of long-term investment needed to bring a launcher to market. A clear example of this came with our unsuccessful application for support from the UK Infrastructure Bank (UKIB), now the National Wealth Fund (NWF).
Following engagement, Orbex received confirmation from the UKIB/NWF that the investment opportunity was deemed to fall outside their risk appetite. This was disappointing, particularly as the fund’s stated aims include supporting innovative sectors and enabling the transition to a future economy. The rejection ultimately left Orbex with no alternative but to approach central Government directly for support.
Our experience with the UKIB stands in contrast with our engagement with the Scottish National Investment Bank (SNIB), which provided early support and demonstrated a strong understanding of the high-capital, long-horizon nature of space launch. SNIB’s approach—focused on economic transformation and alignment with strategic national outcomes—provides a useful model that could be applied UK-wide. Their risk-appetite in assessing what can be a transformative industry should, in our view, be seen as best practice.
Although we found our experience with UKIB a disappointment, we very much welcome the new strategic steer announced by the Government. It seems to intimate that the space sector will feature in the Industrial Strategy through the Advanced Manufacturing Sector Plan. Our hope is that this in turn will impact the direction of funding vehicles such as the NWF.
The need for up-front investment
At its core, space launch is a sector that requires significant up-front investment, often with no revenue for several years. Unlike other high-tech fields, space launch providers cannot begin generating revenue until they have successfully developed, tested, licensed, and launched operational vehicles—an enormously costly and technically demanding process. However, the potential upside of this investment is enormous: the UK can gain sovereign launch capabilities, create thousands of high-skilled jobs, drive innovation across adjacent sectors, and secure a long-term stake in the fast-growing global space economy.
In assessing how the Industrial Strategy and NWF might work, we think it is critical to ask - “Do we need to accept that some of the projects funded by the National Wealth Fund will fail or be poor value for money?”.
The truth is that of course innovation-led, deep tech industries will always carry risk. Against this, it would be a national failure to under-invest in sectors that define the future economy.
The ability to compete internationally
As international competitors provide sustained, long-term financing to their own space sectors—often combining national development banks, space agencies, and industrial strategy tools—the UK must not fall behind due to risk aversion. If we are to nurture a globally competitive space sector, we must accept that some level of risk is inherent and necessary.
The UK space sector faces a disadvantage compared to better-funded European competitors. OECD data published by UKSA shows that France invests four times more in civil space than the UK, with Italy, Germany, and Belgium also significantly outspending Britain on a per-capita basis.
This creates an uneven playing field that affects Orbex’s ability to compete globally. A modest increase in UK Government investment at the next Spending Review could level the playing field and unlock significant value for the UK economy.
Long-term, patient capital is vital. Without it, the UK space launch industry will struggle to scale or compete globally. As a consequence of the NWF being unable to support Orbex, we have been forced into a position where growth depends on short-term solutions, rather than the kind of strategic, long-term support available to our European peers.
For the National Wealth Fund to play a meaningful role in the UK’s future economy, space must be included within its new remit.
Space launch can deliver vast opportunities to the UK
Launch infrastructure and sovereign launch capabilities align strongly with national resilience, advanced manufacturing, net-zero ambitions, and the broader Industrial Strategy. Space launch is not a fringe sector—it is a foundational enabler of modern life and a vital part of the UK’s future industrial base.
As we look ahead, we urge the UK Government and the NWF to adopt a more ambitious, strategic approach to financing space. The opportunity is vast, the challenges are real, but the rewards—economic, strategic, and societal—are more than worth the risk.
We also believe the UK’s Industrial Strategy should include a dedicated sub-sector deal for launch services. This is a critical moment for the UK Government to take a strategic, long-term view—leveraging public-private partnerships to drive innovation, generate exports, and secure a global leadership position in this key sector.
The UK’s funding architecture, including the National Wealth Fund, must be equipped to support companies like Orbex with long-term growth capital, allowing us to scale and thrive as a strategic UK asset.
The Cost of Inaction: Risks of Failing to Support the UK Space Sector
Without decisive Government support, the UK risks falling behind in a fast-growing global space economy. Nations like the US, China, France, and Germany are making major strategic investments, securing their future positions.
A strong UK space sector would boost exports, drive technological innovation, and create jobs across all regions. Without it, reliance on foreign launch providers like SpaceX introduces supply chain vulnerabilities and undermines sovereign capability.
Inaction also means missing a key opportunity to drive regional growth. Northern Scotland has already shown how space can regenerate local economies by leveraging skills from oil, gas, and defence—a model that can benefit the whole UK.
Space is a major innovation driver, supporting sectors such as climate monitoring, AI, data communications, health, and defence. The UK’s leadership in sustainable launch, led by companies like Orbex, also positions the country to pioneer climate tech and foster innovation in energy, materials, and manufacturing.
Initiatives like the European Launcher Challenge (ELC) are also timely opportunities. By backing UK participation through enhanced UKSA funding, the Government can attract private investment and keep the UK competitive on the global stage.
Key Opportunities – boosting economic growth and national security through the UK space sector
The global launch market is growing rapidly—from $45 billion in 2022 to $63 billion by 2030—yet remains supply-constrained. The UK has a strategic opportunity to capture market share and build sovereign capability.
To unlock this potential, the UK Government should:
1. National Security and Strategic Autonomy
Sovereign launch is essential to UK defence, communications, and intelligence. Dependency on foreign providers introduces geopolitical risk. Orbex launch vehicles offer dual-use capability, giving the UK rapid-response flexibility and strategic resilience.
2. Supporting National Economic Growth
Orbex plans to grow to 570+ high-skilled jobs by 2030, with average salaries more than double the UK median. Government backing is key to unlocking supply chain growth and regional regeneration.
Public investment in Orbex is already leveraging £120m in private capital (6:1 ratio). Participation in ELC would further attract FDI and institutional contracts, enhancing long-term sustainability.
3. Long-Term Fiscal Benefits
Orbex is projected to contribute £40 million+ annually in corporation tax by the early 2030s. With 70% of demand from Europe and the US, the UK has an opportunity to become a net exporter of launch services.
4. Strengthening the UK’s Position in Europe
Continued investment in European initiatives may help in strengthening trade links with EU markets. Gaining institutional contracts from the EU or its member states may set precedents that help others in other sectors to break down barriers and win business.
5. Net Zero
Our launches will set new standards in terms of emissions. Orbex is developing the world’s most environmentally sustainable launch vehicle, aligning directly with the UK’s Net Zero ambitions. Its bio-propane-fuelled rocket emits up to 96% less carbon than equivalent fossil-fuel systems and leaves no black soot in the atmosphere. With a reusable first-stage and no debris left in orbit, Orbex offers a clean, responsible route to space access.
Wider Benefits Across the UK
Orbex’s sustainable launch system supports Net Zero, while its innovations in hydrogen storage, non-destructive testing, and 3D printing benefit sectors beyond space. Regional impact in Northern Scotland proves how targeted investment can drive high-tech growth in underserved areas.
Strengthening the UK’s Industrial Strategy to Support the Space Sector
To fully harness the potential of the UK space industry, space must be explicitly included within the Advanced Manufacturing Sector Plan of the UK’s Industrial Strategy. Recognising space as a key pillar of advanced manufacturing would reinforce its status as a high-growth, high-tech sector vital to the national interest.
This inclusion would send a strong signal of long-term Government commitment - boosting investor confidence, supporting public-private collaboration, and, crucially, open the door to long-term financing from institutions like the National Wealth Fund.
Embedding space in the UK’s broader industrial ambitions would also help to drive innovation across advanced manufacturing, AI, materials science, and environmental technologies. As Science Secretary Peter Kyle said recently, the “UK’s space economy is outpacing the growth of the UK economy” - a trajectory the Industrial Strategy should now support and accelerate.
Crowding-In Private Investment
Access to growth capital remains one of the biggest barriers for UK space companies, but the NWF presents a powerful opportunity to change that. By expanding its remit to include targeted investment in space launch ventures, the NWF can act as a catalyst for unlocking significant private capital—crowding in investment at scale.
Public support is a proven trigger for private finance. The Department for Science, Innovation and Technology (DSIT)’s anchor investment in Orbex has already activated a four-year private fundraising strategy aiming to raise £120 million, with a 6:1 leverage ratio. In other words, every £1 of public money is expected to attract £6 of private capital—investment that will flow directly into UK suppliers, services, and innovation.
Including space launch in a new NWF mandate would signal long-term Government backing, helping promising UK businesses to scale, compete globally, and drive job creation, exports, and technological progress.
Crucially, NWF support also unlocks access to additional funding sources. A Government vote of confidence through the Fund would enhance Orbex’s ability to secure sector-specific grants and innovation programmes, and it would strengthen the UK’s position in major initiatives like the ELC. For space companies - many of which rely on a blend of equity and grants - this alignment is especially critical to long-term success.
Benefits of a Flourishing UK Space Sector
Investing in pre-revenue space launch companies is a strategic necessity for the UK. Around 16% of the UK’s GDP depends on satellite services—from banking to logistics, agriculture to defence. Without sovereign launch capability, the UK remains reliant on foreign providers, increasing exposure to supply chain risks in an age of growing geopolitical and economic insecurity.
Launch is a critical enabler of a sector that is projected to grow rapidly in the coming years. Supporting early-stage companies like Orbex not only ensures national resilience, but also drives innovation, creates high-value jobs, and accelerates growth in strategically important areas.
Orbex is developing the world’s most environmentally sustainable launch vehicle, aligning directly with the UK’s Net Zero ambitions.
Related innovations have impact far beyond launch. Orbex’s work in cryogenic carbon fibre tanks has direct applications in hydrogen energy storage; its non-destructive testing systems and advanced 3D printing are already strengthening the UK’s broader advanced manufacturing capabilities.
The regional impact is equally significant. Based in Northern Scotland, Orbex is helping to transform a former oil and gas region into a hub for clean-tech and aerospace—bringing new employment, attracting supply chain investment, and supporting the development of a highly skilled local workforce. This directly supports the National Wealth Fund’s mandate to back industries that can deliver long-term, regionally balanced economic growth.
Supporting UK space launch is about more than just rockets—it’s about securing critical infrastructure, boosting regional economies, building sovereign capabilities, and placing sustainability at the heart of future industrial growth.
With coordinated Government support - through investment, procurement, and strategy - the UK space sector can become a global leader in commercial launch services and broader space technology. From Scotland to the South West and across the Midlands, the sector has the potential to drive jobs, exports, and innovation, positioning the UK at the for forefront of the next industrial revolution.
April 2025