As if the existing Space competition was just not enough, the high-performance sports car manufacturer Porsche has begun eyeing to invest in Space technologies.
It is currently supporting a German rocket start-up Isar Aerospace that aims to overthrow the monopoly and provide a greater tussle to the competing Space firms like SpaceX, Blue Origin or even the Virgin Galactic.
Although Isar has no billionaire backup or fame garnered through repeated launches to Space. But the funding by Porsche to the company may help achieve its aim to improve and prosper in manufacturing of highly automated rockets.
How has Isar proven to be different than others in business?
Porsche has been keen to point out that “existing launch capacities are not sufficient or too expensive or inflexible”. This, according to them, remains an impediment to the smaller firms in the sector to get their own satellites launched.
Currently, Isar is busy with the production of its launch vehicle by the name Spectrum that has been designed to transfer payloads of upto 1,000 kilograms (2,204 pounds) weight into the low-Earth orbit, that too at nominal cost.
The launcher Spectrum harbors an indigenously built engine that is driven by a combination of light hydrocarbons and liquid oxygen, thereby causing lesser pollution than commonly used fuels.
Spectrum’s first launch is scheduled in the second half of year 2022.
The statement reads: “Isar Aerospace plans its initial launch next year and offers a more cost-efficient and flexible launch capacity for satellites with “Spectrum”, the first launch vehicle developed by the company.”
Its second-staged engine provides multiple ignition benefits and the flexibility to deliver satellites directly to their respective final trajectories.
Unlike its rivals in the field worldwide, the Munich based Isar has no upcoming plans in near future for the manned satellites or Space tourism promotion whatsoever.
While the SpaceX is heightening its aspirations with its Starlink or Rideshare missions and Blue Origins has New Glen to showcase its growing potential in this growing market, Isar looks forward to launching only small and medium-sized satellites.
As per the statement released by Isar, it aims to utilize the Space technologies in a wide range of industries, from automotives to the telecom sectors, as well as smart farming applications to surveillance required for tackling climate change.
Through appropriate funding, the beginner firm attempts to “satisfy this demand in a more cost-effective and flexible way compared to established space companies.”
This externally funded firm also has plans to use some of its received funding to work on reusability of space vehicles.
Currently employing barely 180 employees, it expects to reach more than 200 by the end of this year and undertake nearly ten launches every year.
It aims to allow and encourage the interested technology firms to place their satellite constellations into space for a fraction of the currently prevailing price.
Simultaneously, Isar is working on a new launch site in Norway after signing an agreement in April for exclusive use of a pad by the state-owned launch site operator Andoya Space.
It is even heard in the industry that Isar has signed a few other customers, it has not preferred to announce yet.
ESA and German Space Agency has helped the firm, explains the Chief Commercial Officer of Isar Aerospace: “Obviously, Europe is a big market for us, but we see the growth potential in Asia and in the U.S. as well”.
“I think we are really well positioned to penetrate the market. Now we want to expand our launch capabilities, our manufacturing and production capabilities.”
“They (ESA and DLR) are supporting us in terms of bringing customers in.”
What will Porsche gain from this seeding?
Porsche, by providing the capital to Isar, hopes to acquire an early hold on these future prospective space technologies.
They have collaborated with other investors such as HV Capital to inject a staggering $165 million into the start-up, $75 million alone funded by Porsche, thereby acquiring “a low single-digit percentage stake” in the space-related entity.
Other investors include the banking giant Lombard Odier while the existing ones are Earlybird Venture Capital, Lakestar, Vsquared Ventures, Apeiron Investment Group and UVC Partners.
Porsche clarifies: “The technological progress and the development speed of the whole organization are very impressive, and we look forward to support Isar Aerospace with its ambitious growth plans.”
“Isar has shown that it has a good business plan and that they can tell the story of how space can be a trillion-dollar economy by 2040”.