Scottish space company Orbex has announced it will focus operations exclusively on developing small and medium sized space rockets after switching its launch operations to SaxaVord Spaceport in Shetland.

The company has decided to pause construction of its spaceport in Sutherland and instead launch its first rockets from SaxaVord, saying that this will enable it to direct more funding to the development of a new, medium-sized launch vehicle called Proxima.

Orbex said it will retain the lease to build and operate its own spaceport at Sutherland, giving the firm flexibility to increase launch capacity in the future, and keep the decision under continuous review.

“Orbex is first and foremost a launch services specialist,” said Phil Chambers, CEO of Orbex.

“Our primary goal is to support the European space industry by achieving a sustainable series of satellite launches into low Earth orbit. This is best achieved by focusing our resources and talents on developing launch vehicles and associated launch services.

“This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition. It’s a win-win for UK and Scottish space.”

Orbex confirmed plans to increase the size of its manufacturing capability in Forres to ensure it can meet demand for its 2-stage reusable launch vehicle, known as Prime, and will now also use the site to develop a new medium launch vehicle, which will enable Orbex to send more and larger satellites into orbit.

The company said that this also better positions the business to participate in the European Launcher Challenge, an ESA-run competition to assist with the development of European launch capabilities, and to service institutional and commercial contracts.

Most recently, the ESA announced additional funding for Orbex through its Boost! programme, with €5.6 million (£4.6 million) earmarked to help the firm move toward the inaugural launch of its Prime micro-vehicle.

“Medium-sized space rockets will play an important role in the European space industry in years to come. It is part of our strategic plan to offer the market a medium-sized launcher that will compete in Europe for larger payloads,” added Chambers.

“Pausing the construction of our own spaceport enables us to now focus on developing this offering.”

The news follows the company’s updated plans for its Sutherland spaceport last month, with changes made to address environmental concerns around the construction. 

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The new plans would have seen a reduction to the size of the launch pad area and of the footprint and height of Orbex’s Launch Site Integration Facility, with a communications hub relocated to the summit of Ben Tongue. 

Construction of the Sutherland site began last year, with Orbex initially hoping to launch up to 12 orbital rockets per year, deploying satellites into Earth’s orbit, with the company receiving over £3.3 million from the UK Space Agency to ensure its work would be environmentally sustainable.   

Orbex had said that the Sutherland Spaceport would be the company’s ‘long-term’ home, which aimed to be the first carbon-neutral spaceport in the world, both in its construction and operation.