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Space Investing
Section 2 - The Frontier of Space Business
Moving a Mountain of Platinum
Moving a Mountain of Platinum
Here we see a small asteroid containing platinum group elements (PGEs) harvested in preparation for ore extraction on the Moon. A ring of thrusters guides the asteroid for release at a specific point in the free return orbit from the Main Asteroid Belt. Courtesy Phil Smith.

We continue with our overview of space business and investing with a look at space businesses outside of the conventional telecommunications and launch industries.

The following two industries are now "off the ground":

  • Remote sensing is a promising area with many possible commercial applications but is still struggling to grow into a industry that relies on commercial markets (e.g. agricultural services, real estate development planning, etc.) instead of government and military markets.

  • Global Positioning (GPS) is a space-related business whose activity is on the ground but uses signals from government satellites. Commercial growth has not been as fast as initially hoped but in the past few years has accelerated with applications such as cell phone location systems.

Human Spaceflight has not yet seen a successful business model. The dream of most space activists is that some sort of commercial space business will emerge that will pay for human spaceflight and make irrelevant the humans vs. robots argument.

Space tourism could become the killer app that finally makes human spaceflight self-sustaining. Until Dennis Tito's flight in 2001, even most space advocates considered tourist excursions to orbit to be many decades in the future. But there has been a big change of attitude. Paying customers have continued to go to the ISS (after a break due to the Columbia accident) and most observers believe that several companies will start to offer suborbital space rides for paying customers in the 2008-2009 timeframe.

We discuss below further aspects of commercial human spaceflight projects.

Almost every concept about commercial space would be greatly enhanced if access to space became significantly cheaper. In fact, many of the most interesting space businesses will not be feasible until launch costs fall a whole lot. There are many companies working on lower cost space transport. We discuss those in these sections:

We focus on this page on new business concepts that could be served by cheaper space access:

 


News & Resources about New Space Businesses

 


2A - New Space Business Concepts in Development

Human Spaceflight

For exploration purposes, the humans versus robots debate has been going on since the start of the space age. Most space advocates, however, don't see space as just for science but as a place for humans to live and settle. To initiate and support humans in space, there need to be commercial services and products created there. Here we look at some possible businesses for people in space.


Microgravity factories

In the 1980s there were many who predicted that the manufacturing in space of speciality products like protein crystals, pharmaceuticals, and microelectronics would grow into big businesses. Microgravity provides for a number of interesting effects, such as allowing some types of fragile but scientifically and industrially important crystals to grow to much larger sizes than on the surface of the earth.

It should be noted, however, that experiments on the Shuttles, Mir and with sounding rockets did provide some strong indications that microgravity leads to interesting effects and perhaps someday might allow for the manufacture of useful products. (See the section on microgravity links for more information.)

Unfortunately, the lack of cheap and frequent access to space prevented researchers from carrying out the amount of research and development needed to discover goods of high value and to make their manufacture in space feasible and commercially viable. There are very few goods that would make a profit if it costs several thousand dollars per kg to deliver the raw materials to the orbiting factory.

NASA has continued to support R&D (though much of this has been cut to provide funding for the Exploration program.) For more info, see


Space Tourism/Personal Spaceflight

When Dennis Tito flew to the ISS in 2001, it produced an enormous boost for the promoters of commercial space tourism. Previously, the concept was considered a wild fantasy. However, even with the subsequent flight by Mark Shuttleworth, the high cost of such flights still made it seem an extremely limited market.

However, in 2004 Burt Rutan's team won the the X PRIZE and set off a new race to become the first company to offer suborbital spaceflight rides, which while still not cheap ($100k-$250k), will involve a much bigger market. As of the fall of 2005, there were around 300 people who had already place deposits or paid the full amount to companies like Virgin Galactic and Space Adventures for rides as soon as they became available. Virgin Galactic said they had already collect over $10M and the flights for the first 2 years are already booked.

It is hoped that the suborbital business will incrementally improve spaceflight transportation and eventuually offer low cost access to orbit, as well. The RLV & Space Transport News weblog follows developments in the area of commercial space access.


Spaceflight Training/Preparation

The people who run and fly space tourism vehicles will need training. Also, passengers may also some level of preparation as well. These firms hope to provide such a service:


Spaceflight Support Hardware

Space Suits
Standard NASA space suits can cost millions of dollars and they usually must be customized to some extent for each astronaut. Low cost alternatives are needed for space tourism.


Commercial Orbiting Facilities

Bigelow Aerospace modules relative size
(Image: Bigelow Aerospace)
Relative sizes of the Bigelow Aerospace habitat modules.

Operations schedule (ref.):
    Genesis I - launched July 2006
    Geneis II - launched June 2007
    Galaxy - this will be built for ground studies but not launched
    Sundancer - planned launch in 2010, docking & propulsion module added in 2011,
    BA-330 - launch in 2012 and docked with the Sundancer module


There has only been very limited success in getting companies to subsidize microgravity experiments on the ISS. The high costs of access and of operations on the station have prevented the projects from getting very far. See the ISS Commercialization section.

NASA signed agreements with a company called Dreamtime to exploit the multimedia possiblies on the ISS but the firm went bankrupt. SpaceHab signed an agreement with the Russian Energia company to develop the "Enterprise" module, which would be dedicated to multimedia and other commericial activities but that project also seemed to go into limbo.

Boeing once announced plans to convert a spare Russian module to a commercial module but that also never got off the ground.

However, independent projects to develop space habitats has made considerable progress, especially that of Bigelow. Below we list some of these projects.

Bigelow Aerospace
This company is developing plans for a space tourism infrastructure that includes orbital hotels. Owner of Budget Suites of America, a $600 million (est.) privately held company, Robert Bigelow is planning a long term project to develop space tourism with a committement of several hundred million dollars.

See the BA Growth Chart for the series of modules planned that will lead to the launch of crew capable habitats by 2010. Their first prototype module - Genesis I - was successfully launched on July 12, 2006. Genesis II was launched on June 28, 2007.

In August of 2007, they announced that instead of launching the Galaxy module in 2008, they would do only ground studies with it and instead accelerate development and flight of the Sundancer crew capable module. They did not announce when Sundancer will fly but could be as early as 2010.

Price plan as given by Robert Bigelow in April 2007:

  • A full-scale module, with 300 cubic meters of volume, would cost
    • $88 million a year or
    • $7.9 million a month to lease;
    • half a module would cost $54 million a year or
    • $4.5 million a month.

See Space Transport News web log for the latest update. Do a search there on "Bigelow" to obtain a list of postings with links to stories about the project.

More information in the Space Tourism section.

The Ask a Rocket Scientist service answers "questions on Bigelow Aerospace, Genesis I and II, Mission Control and anything else related to our company and spaceflight".

Interview with Robert Bigelow on The Space Show on August 24, 2006.

The company is also supporting the America's Space Prize, which will be awarded to the US team that successfully flies a reusable orbital manned vehicle by 2010.

Previously, Bigelow sponsored the Bigelow Prize competition to reward those who helped " the promotion and/or use of space for private enterprise purposes without government ownership."

The winner of the year 2000 award was Spacehab:. Spacehab Wins $10,000 Prize for Role in Space Commerce - Company Puts Money into Scholarship Fund - Spaceref.com - June.27.01. This program has apparently been discontinued.

 

SpaceHab
SpaceHab was the first, and so far only, hardware company to make a profitable business from manned spaceflight activities. (Space Adventures sponsorship of ISS tourist trips is apparently profitable but they didn't build hardware.) It was formed completely with private investment and has risked its own funds to

"develop, own and operate pressurized habitable modules that provide space-based laboratory research facilities and cargo services aboard the U.S. Space Shuttle fleet."

While NASA is still the primary customer, the company also marketed the modules to industry, such as pharmaceutical companies, for microgravity research, e.g. crystallization of proteins.

History of SpaceHab - Michael Kearney - TWST

In late 2007, the company led a team that submitted a proposal to NASA for the second round of the COTS program to provide commercial cargo resupply for the ISS. In January it was announced they were one of four finalists. Their system is based around the ARCTUS spacecraft modules that could be launched on any of several rockets.

Previously, the company had proposed its own commerical module - Enterprise - for the International Space Station but that project never proceeded past the conceptual design stage. In the first round of the COTS competition in 2006,he company proposed its Apex module system, but they did not win a contract.

More articles:

MirCorp
MirCorp was a collaboration of several western investors and the Russian RSC Energia company. The company intended to commercialize the Mir space station. With the de-orbiting of Mir the company turned to using the International Space Station and to developing its own module.

The company believed that an orbital facility could provide several revenue sources:

  • Advertising - e.g. company logos on the outside of the modules, commercializes filmed in the station, etc.
  • Microgravity R& D sponsored by governments and businesses.
  • Space media and internet portal like SpaceHab and Dreamtime below
  • Satellite launching & service - small satellites could be assembled, tested and launched from Mir (assuming their desired orbits were accessible.) This would avoid the expense and complications of the hardening necessary for ground launches. Also, many satellite failure occur early in the mission so the on orbit testing could avoid this.
  • Tourism - see the Space Tourism section for the latest news on MirCorps tourism efforts. One passenger has already signed up.

Initially, Dennis Tito dealt with MirCorp but switched to Space Adventures when his target hotel changed from Mir to the ISS. See the MirCorp entry in the Space Tourism section for recent news items.

Founder Walt Anderson subsequently focused on the company Orbital Recovery, which is developing a space tug for comsat rescue.

See the discussion at Transterrestrial Musings of my retrospective (Feb.8.04) on Dwayne Day's article Chasing profits in the void: MirCorp's economic success highly unlikely by Dwayne A. Day - Florida Today - June.16.00.

Sept.04: Mir-Corp is supporting the Xero service that will provide parabolic flights out of a base in Kiruna in northern Sweden.

March.05 - Walt Anderson was arrested in the US for tax evasion. He was accused of hiding several hundred million dollars in off-shore accounts.

More Commercial Space Habitat Projects and Resources:

Low-cost Satellites & Scientific Probes

Spacedev - OTCBB:SPDV
Founded by wealthy investor James Benson and collaborating with many noted space scientists, SpaceDev is making a serious effort to build a business from exploring and mining asteroids.

The company is currently developing low cost space probes on which it will sell research opportunities to NASA and university research groups.

The company has received contracts with companies such as Orbital Sciences to build radio communications equipment. It has won contracts with an Australian government/university organization to build a micro-satellite and with NASA for a university research satellite.

Surrey Satellite Technology Ltd.
This British firm is a spinoff from the highly productive student satellite program at Surry University. SSTL has now launched several commercial microsats and seems to be doing quite.

See more about amateur and student satellites in the Satellite Building section.


In-Space Services: Satellite Repair, Refueling, Assembly, etc

Space Tugs

To develop and support an in-space infrastructure, a space tug vehicle of one kind or another will eventually be required for economic operations. Such vehicles remain permanently in space. Their jobs include boosting spacecraft to their desired orbit, bring cargo and crew modules in to dock with a space station, bring a satellite to a station for repair, moving fuel tanks at an orbiting fuel depot, etc. The first such vehicles are now under development.

Orbital Satellite Services
As discussed in the Geostationary section, the big money makers in the space business are the communications satellites in the GEO orbit around the equator. Many of these huge birds are still functioning well when they run out the fuel needed to do the station keeping propulsion to maintain their location.

The company Orbital Recovery was formed in 2002 to develop a spacecraft that would rendevous and attach itself to such derelict spacecraft and provide station keeping functions. This could extend the lives of the comsats for several more years and save the companies that own them hundreds of millions of dollars otherwise needed to buy new satellites.

Recently (Nov.03) to join with the Dutch Space, which is "evolving the Ariane 5 payload adapter unit into a self-propelled spacecraft - pursuing this conceptual work under a program supported by the European Space Agency."

The company's founders include Walt Anderson, the well known telecommunications mogul and space investor (see Space Angels), and also Dennis Wingo, who also runs SkyCorp (see below.)

More Space Tug Projects

Constellation Services International
This small company has been developing a standard set of container spacecraft that could launch on many different rockets and would be used to deliver cargo to the ISS or a Bigelow habitat. The company includes several space activists including Charles E. Miller, founder of ProSpace and David W. Anderman, a director of Space Frontier Foundation. Walt Anderson was also an early advisor.

More Space Module Projects

  • SpaceHab offers standardized modules for cargo

  • GEO-Ring (or GEORING) - a collaboration of European companies developing a system called HERMES, which would provide "On-Orbit Servicing for Satellites". The system includes several different spacecraft that provide capabilities ranging from orbital refueling to station-keeping tasks.
  • The companies have agreed to cooperate on the development of innovative solutions for extending the lifetime of ARABSAT satellites and for providing the capability to receive fuel replenishment in orbit. ARABSAT will provide material and knowledge assets to fine-tune the services of GEORING to its own particular satellites and needs. GEORING will focus in priority on the needs of ARABSAT for on-orbit servicing.


In-Space Assembly

SkyCorp
Skycorp was founded by Dennis Wingo to develop the capabilities to assemble and launch satellites from the International Space Station and other orbiting platforms.

On orbit assembly could allow for much cheaper satellites since they would not have to be hardened for the rigors of ground launch. Furthermore, the sats could be turned on and checked out before release into orbit.

Most satellites that fail usually do it in this first phase after launch when they open their solar arrays, antennas, etc. and something gets stuck. By doing this at the station under supervision, it would be possible to bring them back in for repair if there was a problem.

SkyCorp believes such an approach could reduce the price for a Teledesic scale LEO constellation by a factor of 10.

Apple - SkyCorp Page


Lunar Exploration & Development

We put a total of twelve people on the Moon more than three decades ago and NASA now proposes to go back to the Moon by 2020.

However, it's possible commercial companies might get there first or at least play a substantial role in NASA's program. A number of ventures are in the works to send first unmanned spacecraft and then people to the Moon.

Recently, Transorbital got enormous publicity when it received licenses for its spacecraft to go to the Moon to send back HDTV of the surface and deliver a time capsule with digital messages and tokens from the public.

TransOrbital
This startup aims for the moon with a low-cost lunar orbiter - TrailBlazer - that will provide high-resolution video on order. A later mission will place a lander - Electra - on the moon.

More info in Space Tourism section.

LunarCorp
Unfortunately, LunarCorp has been dissolved. Former president, David Gump, is now CEO of Transformational Space Corp. Nevertherless, it is of historical interest and a similar project will probably arise again.

LunarCorp's central aim was to develop Lunar rovers that could be used for research but also for entertainment & education via remote control at amusement parks, museums, planetariums, etc.

Company advisors included Buzz Aldrin and Alan Binder, who directed the Lunar Prospector mission, and it worked closely with famous robotist Red Whittaker of the Robotics Institute at Carnegie Mellon University (CMU) in Pittsburgh.

They are also worked on developing a project to send rovers to the Lunar poles to examine the ice deposits there.

Tthey tried to develop a Lunar Defense arcade game in collaboration with Entropy Engineering. and a lunar landing simulator for museums and planetariums based on the arcade game platform.

One success for the firm was a sponsorship deal with Radio Shack. But it was not enough to pay for the entire mission.

More Lunar Projects   

More New Space Business Concepts

Flying Memorabilia in Space
Sending coins, medallions, stamps and other items into space and bringing them back as souveniers has been going on since the earliest days of manned spaceflight. Flown artifacts are a popular segment of the space collectibles hobby.

Now some are trying to make flying items in space as a business all on its own. Space and sci-fi related items will get an added cachet if they are certified