Scottish Rocket Firm Orbex on Verge of Collapse After Funding Failures
A British space startup based in the Scottish Highlands, Orbex, is teetering on the edge of collapse, putting 150 jobs at risk and casting doubt on the United Kingdom's aspirations to establish a sovereign space launch capability. The company, which had been developing a low-carbon rocket for small satellite launches, is preparing to appoint administrators as rescue talks and fundraising efforts have stalled.
Government Loans and Failed Rescue Deals
Orbex received significant taxpayer support, including a £20 million loan approved by Business Secretary Peter Kyle in January 2025 and an additional £6 million loan from Technology Secretary Liz Kendall in the summer of 2024. Despite this financial backing, the company struggled to secure further funding. Discussions with the Treasury-backed National Wealth Fund broke down at an early stage late last year, and a potential acquisition by German firm The Exploration Company did not materialize.
Chief Executive Phil Chambers expressed deep disappointment, stating that Orbex was "on the cusp" of conducting its first test flights in 2026. He highlighted the capital-intensive nature of rocket development, emphasizing the need for institutional support to bridge funding gaps. The company had been in advanced talks for a £150 million contract with the European Space Agency to develop alternatives to SpaceX.
Launch Plans and Operational Challenges
Orbex had planned to launch its 19-meter-long rockets from SaxaVord on the Shetland Islands, after shelving an initial project to build a spaceport on the A'Mhòine peninsula in the Highlands. This launch would have marked the first from UK soil since Richard Branson's Virgin Orbit mission failed in 2023. However, repeated delays and financial hurdles forced the company to explore merger and acquisition options, none of which succeeded.
A government spokesperson acknowledged the competitive nature of the space launch sector, noting that while some companies succeed, others may fail. The government reaffirmed its commitment to supporting the space industry and plans to outline further details on developing national capabilities, with a focus on maximizing taxpayer value.
The potential collapse of Orbex not only endangers jobs but also represents a significant setback for the UK's space ambitions, which had been championed by officials like Dr. Paul Bate of the UK Space Agency, who praised the company for inspiring future generations.
