Federal government’s millions for Canada’s commercial space race marks a new chapter

Nordspace was forced to scrub several launch attempts in August and September at their St. Lawrence spaceport, though Goel said his group learned valuable lessons in the process that will push them closer to their goals. (Ross Tilley/NTV News)

Interest from the federal government is marking a new and potentially lucrative chapter in Canada’s bourgeoning commercial space race.

Ottawa’s November budget — the first for Prime Minister Mark Carney — pledges nearly $200 million over the course of the next three years “to establish a sovereign space launch capability.”

It’s part of Carney’s push for a Defence Industrial Strategy (DIS) and according to players in the commercial satellite industry, it’s a sign of important attention from federal officials.

“To see it be called out so specifically in the Canadian budget is a huge vote of confidence,” said Rahul Goel, the CEO of NordSpace.

Both NordSpace and competitor Maritime Launch Services are working on building out their own spaceports, or rocket-launching facilities. NordSpace’s infrastructure is being built in St. Lawrence, N.L. while Maritime Launch Services is building near Canso, N.S.

“Sovereignty and space is being prioritized for the first time,” Goel said.

Both companies say they’re well-positioned to receive some of those federal dollars. The proposed spending by Ottawa would amount to about $60 million per year.

“It’s never been done before, having that kind of budget allocation for launch in Canada” added Steve Matier, the CEO of Maritime Launch Services. “We’re thrilled to see it.”

Federal officials have yet to lay out their vision for the money nor how they plan to divide it. Goel said he understands that Ottawa wants a functioning spaceport built and firing rockets by 2028.

“That is record speed as well, in terms of where Canadian companies are and what we need to deliver it,” he said.

Goel said he expects — and hopes — the money will be split between multiple companies to create more competition in the space sector and draw in some private investment. He explained the $60 million in yearly spending is “significant,” but not so much that it could sustain several companies completely.

“Maybe not even two,” he said. “The intent certainly is to use this as a catalyst to draw in private capital.”

According to Matier, Maritime Launch Services is working on an airport-like model for providing service to companies with their own rockets and payloads, or satellites, to launch.

“You want to have a launch client, like Air Canada or WestJet or whatever, where you’re providing these services to them. You know, instead of baggage handling its satellite handling.”

The group is currently working with T-Minus Engineering, a rocket company in the Netherlands, with a sub-orbital launch from the Nova Scotia spaceport scheduled as early as Nov. 18.

That rocket is expected to hit the “Kármán Line,” the boundary between earth and space, roughly 100 km above sea level.

The creation of made-in-Canada rockets, with the ability to reach deeper into space, will be a bigger hurdle than the creation of a launch pad, Matier said.

“It’s not a small task,” he said. “Whether it’s a small launcher or a medium launcher, those are genuinely risky, high-cost ventures.”

He projects that much of Ottawa’s money will be sent to companies trying to solve that launcher problem.

“I think there may be some overflow for a spaceport, but I think it’s really about making sure these launchers get a little bit of seed money,” he said.

Along with their launch pad in St. Lawrence, NordSpace is also working on building rockets and satellites too — Goel said part of his company’s goal is to maximize jobs and value in Canada.

The company was forced to scrub several launch attempts in August and September at their St. Lawrence spaceport, though Goel said his group learned valuable lessons in the process that will push them closer to their goals.

“We’re 100 per cent Canadian-owned company…so hopefully that bodes well for us,” he said. “We’re in the ready position.”