Shetland-based HyImpulse, a launch company working with SaxaVord Spaceport in Unst, and Forres-headquartered Orbex, a launch company working with Sutherland Spaceport, will receive around £6.7 million between them.

Orbex will get over £3.3 million to undertake activities to ensure its work is environmentally sustainable. This includes installing a green propellant plant to manufacture a clean propane, produced from renewable feedstocks such as plant and vegetable waste material.

Sutherland Spaceport will be Orbex’s ‘long-term’ home, which aims to be the first carbon-neutral spaceport in the world, both in its construction and operation.

Meanwhile, HyImpulse UK will receive nearly £3.4 million to undertake its Hybrid Propulsion Test Programme ahead of the proposed launch of its launch vehicle, SL1, from SaxaVord Spaceport.

By 2030, HyImpulse aims to achieve carbon neutral operations, including the use of synthesised paraffin fuel and using renewable energy sources.

The funding was awarded using UK Space Agency contributions to the European Space Agency’s (ESA) Boost! Programme. The programme aims to help companies develop world-leading space transportation services and bring them to market.

The UK invested £12 million into the Boost! programme in 2019, followed by another £12 million in 2022, one of the largest investments from ESA member states. Previous Boost! contracts were awarded to the companies in 2020 and 2021.

Matt Archer, director of launch at the UK Space Agency, said: “Our investment in both Orbex and HyImpulse demonstrates our continued commitment to make the UK Europe’s leading destination for launch by encouraging the development of launch companies.

“These contracts will help Orbex to develop the launch site at Sutherland Spaceport and HyImpulse to prepare for their first launch from SaxaVord Spaceport, enhancing our launch capability, creating high skilled jobs and supporting the Government’s vision for the UK to be Europe’s most attractive launch destination by 2030.”

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Andrew Griffith MP, minister for space at the Department for Science, Innovation and Technology, also commented: “We want the UK to become Europe’s leading destination for small satellite launches, building on our expertise in satellite design.

“Pioneering innovations like building the world’s most eco-friendly space rocket signal our commitment to being at the forefront of the next generation of space technology, while raising our standing as a leader in space sustainability.

“Our funding alongside further private sector investment will enhance the work of our ambitious space sector while creating highly skilled jobs across the UK that grow our economy.”