Funding boost worth £60m for SaxaVord Spaceport
The UK Government is pledging £30 million, with the rest to be met by private investment
THE UK Government has committed £30 million in funding for the SaxaVord Spaceport in Unst as part of a wider £60 million public-private investment programme.
The government investment, which is subject to due diligence, is being announced as part of the UK’s updated space strategy published today (Tuesday), and will be complemented by £30 million of planned private investment.
The spaceport said the funding will support completion of key infrastructure as it moves towards regular commercial launch operations.
It is targeted towards all three launchpads, mission management infrastructure and second integration hangar required by international launch companies keen to bring their business to the UK.
The UK’s only licensed vertical launch spaceport, SaxaVord has regulatory approval for up to 30 launches a year and is being developed to accommodate multiple launch providers.
A first launch at the site, from German rocket firm RFA, was due to take place in August or September but was postponed.
Another German company, HyImpulse, recently reiterated its desire to launch from SaxaVord in 2026 after receiving support from commercial investors.
A launch from SaxaVord would be the first of its kind in the UK.
Commenting on the funding commitment, SaxaVord CEO Scott Hammond said: “This is a hugely significant vote of confidence in SaxaVord and in the UK’s determination to establish its own launch capability.
“We have transformed a former RAF radar station in Unst into the UK’s first licensed vertical launch spaceport.
“This government investment, which will unlock a matching amount of private investment, will help us take the next step – establishing regular launch operations from the UK and building a sustainable commercial spaceport for the long term.
“We are building the spaceport for the thousandth as much as the first launch, creating a safe, secure and trusted home for our client launch providers for many years to come.”
Lise Kaae, CEO of Heartland, which through its investment arm Wild Ventures has a majority stake in the spaceport, added: “We are very pleased to welcome UK Government as an investor and partner in SaxaVord.
“Their commitment is a strong endorsement of the ambitions for the company, the spaceport in Shetland and the potential we have believed in for many years.
“As long-standing supporters and partners, we are proud of the development so far and look forward to continuing the journey alongside the UK Government.”
The UK Government said its new space strategy is backed by a record £7.8 billion until 2030.
It said it brings together the government’s “space investment and activity under one plan to drive growth, strengthen security and back the technologies that underpin modern life”.
The government also said UK funding will see British tech offer “earlier warnings of potential satellite collisions, hostile activity and solar storms, helping protect the power, communications and navigation services people rely on every day”.
Business, innovation, science and trade secretary Jonathan Reynolds said: “As space becomes a new frontier of economic and military competition, this plan will help keep Britain secure by strengthening our ability to launch satellites, detect threats and protect the services people rely on every day.
“At the same time, this plan will enable our excellent UK industry to seize the boundless opportunities of this new age in space, creating skilled jobs, driving growth and improving connectivity for all of us.”
SaxaVord Spaceport has received government funding before, including £10 million announced in 2024.
RFA has been working towards the first vertical orbital test flight from UK soil, while HyImpulse is preparing for a sub-orbital launch campaign.
SaxaVord said it is also in discussions with further launch service providers.
The UK Government investment is subject to final sign-off.
SaxaVord Spaceport said it intends make a further announcement, including details of the investment programme, once the agreement has been settled.
Become a member of Shetland News
Shetland News is asking its readers to consider paying for membership to get additional perks:
- Removal of third-party ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
