Modern Day Space Race

 

When it comes to space, I am an expert. In fact, there is a seemingly infinite amount of space in between my ears. In all seriousness, space has always fascinated me. Is it a hoax made by the government? Are we really the only intelligent lifeforms in the universe? While one of these questions is incredibly stupid, the other genuinely makes me wonder what exists in the great beyond.

Just yesterday, an international team of astronomers captured an image of a black hole at the center of the Milky Way. The image was taken by researchers from the Event Horizon Telescope (EHT) Collaboration; the same group credited for taking the first direct image of a black hole back in 2019. It’s nice to know the group’s interest in holes hasn’t waned, but why is this important?

The group’s latest image reveals clues regarding where these cosmic bodies exist and how galaxies are formed. Speaking of galaxies, the Hubble Space Telescope has revealed that there are an estimated 100 billion galaxies in the universe. Keep in mind that we exist in the Milky Way galaxy, which represents just one small galaxy. As for black holes, no one really knows what exists beyond the void.

Personally, I would like to believe that if I were able to survive the crushing gravity of a black hole, I would end up behind the scenes on the set of the Truman Show. What, did you really think you casually stumbled upon this article by chance? Jokes aside, the universe is expansive, wildly unexplored, and, above all else, lucrative. With countries around the world vying for a piece of the pie, we are currently living through the modern-day space race.

The Space Economy

The global space economy was valued at around USD$423.8 billion in 2019, shaped by a wide arrange of activities associated with researching, exploring, and utilizing space. It should be noted that the US Secretary of Commerce estimated that the space economy will reach somewhere between USD$1-3 trillion by 2040. So, what actually makes the space economy so lucrative?

Traditionally, the space economy has largely been driven by the aerospace and defense market, which is expected to grow from $700.30 billion in 2021 to $755.24 billion in 2022, expanding at a compound annual growth rate (CAGR) of 7.8%. Broadly speaking, the aerospace and defense market is comprised of sales of aircraft, aircraft components, and weapons, to name just a few. Naturally, this includes spacecraft.

With this in mind, Canada houses multiple aerospace companies employing almost 207,000 skilled professionals, according to the Government of Canada. In total, the Canadian aerospace industry contributed over $22 billion to Canadian Gross Domestic Product (GDP) in 2020. Furthermore, Canada exported more than 75% of its products to 186 countries spanning six continents.

However, much like space itself, there are an almost infinite amount of possibilities related to the space economy. In addition to aerospace and defense, developments are expected to be made in three key areas, including the launch industry, satellite trends, and new technology. In particular, the small satellite market is expected to grow from USD$4.70 billion in 2021 to USD$10.75 billion in 2028.

Satellite Monopoly

One of the most highly anticipated satellite internet constellations is that of Starlink, which is operated by Elon Musk’s SpaceX. According to the company, Starlink utilizes advanced satellites in low orbit to offer services that historically have not been possible with satellite internet, including video calls, streaming, and online gaming, among others.

Ultimately, Starlink is intended to provide connectivity to rural and remote areas with download speeds between 100-200 Mb/s and latency as low as 20ms in most locations. Considering the average speed of satellite internet, that’s pretty damn impressive. To put things into perspective, the average speed of a satellite internet plan is 31 Mb/s, with plans costing around $110 per month.

Referring back to the space economy as a whole, space activities have mostly been funded by the government. However, more recently, the commercial sector has grown exponentially, accounting for more than three-quarters of the USD$323 billion spent yearly across the globe on space activity. In fact, over 80% of the space economy is commercial, according to David Buehler et al (2021).

With this in mind, commercial satellites are all the rage, and understandably so. After all, commercial satellites can be used for a wide range of applications including navigation, television, and imagery. Typically, operators offering these services contract the manufacturing of satellites and their launch to private or public companies, representing a significant portion of the commercial satellite economy.

Commercial Spaceflight

Finally, this brings us to the commercial spaceflight industry, which generates a significant portion of its revenue from the launching of satellites into the Earth’s orbit. I have to give myself a pat on the back for the segway. Disappointingly, “commercial spaceflight” doesn’t exclusively refer to human spaceflight. Commercial spaceflight more directly relates to goods or services existing in space for use on Earth.

As you probably could have guessed, this includes satellites and the like. With this in mind, competitiveness in the commercial spaceflight industry has skyrocketed, no pun intended. This is due to drastically reduced prices related to launches and space hardware, lowering the entry point for a lot of companies. That being said, there is no shortage of companies looking to leverage satellite technology.

However, to get a satellite up in the air, or rather space, you are going to need a spaceport. Unlike most of the terms I have discussed thus far, a spaceport is exactly what it sounds like; a base from which spacecraft are launched. Last year, the National Spaceport Network Development Plan revealed that there were 13 FAA-licensed spaceports in the US at the time.

For context, the FAA refers to the Federal Aviation Administration, which issues and enforces regulations covering manufacturing, operating, and maintaining aircraft. What about Canada? Glad you asked, my fine reader! Despite hosting numerous aerospace companies, turns out Canada does not have any spaceports. Until now. Enter Maritime Launch Services, Canada’s first commercial spaceport.

Maritime Launch Services Inc.

• $76.658M Market Capitalization

Maritime Launch Services Inc. (MAXQ.NE) is a Canadian-owned commercial aerospace company based in Nova Scotia. The Company announced on April 27, 2022, that it has been listed on the NEO Exchange under the ticker MAXQ. Maritime Launch intends to offer state-of-the-art, low technical risk launch alternatives for placing global client satellites into Low-Earth orbit, at competitive prices.

“Following the record-setting investment in the space market in 2021, we expect the industry to continue on its growth trajectory over the years to come. As a launch service provider, Maritime Launch aims to serve as a part of the backbone of the entire industry and will be a model for the commercial space sector,” said Stephen Matier, President and CEO of Maritime Launch.

Don’t get me wrong, I have nothing against Nova Scotia, but it isn’t exactly the first place that comes to mind when I think of “outer space.” However, there’s actually a pretty good reason for establishing a spaceport in the province. The Company’s planned Spaceport Nova Scotia is located on the eastern edge of the North Atlantic ocean.

Why is this important? Well, from here, the spaceport is clear from launch trajectory path obstructions or hazards. Furthermore, this location provides an easy rallying point for transportation, resources, and clients. Furthermore, Maritime Launch’s manufacturers have designed and built launch vehicles for Low-Earth orbit (LEO) single spacecraft or constellation satellite missions.

Currently, the Company’s key partners include Yuzhnoye and Yuzhmash, the developers of Maritime Launch’s Cyclone-4M launch vehicle. In terms of experience, both partners have over 65 years in the aerospace industry with more than 878 launches under their belt as of 2021. If you would like to know more about the Cyclone-4M launch vehicle, check out the Company’s official page.

Why You Should Care

As much as I would love to ramble on about Maritime Launch, I will save that for another article. For now, let’s cut to the chase. As it stands, the Company’s current clients represent over $1 billion in prospective launches. By 2024, Maritime Launch intends to have its launch vehicles in flight, with deployments to suit the needs of any organization. Spaceport Nova Scotia will also represent Canada’s only spaceport.

#ThankYou @architecture49 and AldrichPears Associates for the incredible designs of our Launch Control Centre: an onsite facility that will help manage the deployment and control of satellites launched from right here in Nova Scotia @HFXforum pic.twitter.com/f0g5anv5hi

— Maritime Launch Services (@maritimelaunch) November 19, 2021

If that wasn’t enough, Maritime Launch is positioned to offer the largest range of launch inclinations on the continent. As summarized by the Company, Maritime Launch provides a solution to commercial clients in need of a “safe, affordable, and strategically-located launch.” Overall, Maritime Launch has established a unique foothold in a rapidly growing and profitable market.

Shortly after listing on the NEO, Maritime Launch announced on May 4, 2022, that it has signed a letter of intent (LOI) with Reaction Dynamics (RDX) to conduct launches from Spaceport Nova Scotia. These launches are expected to commence in 2023, adding Canada to the short list of “Launching States.” An initial suborbital launch utilizing RDX’s small class launch vehicle Aurora is planned for Summer 2023.

So, why is this proposed partnership so significant? RDX is credited for developing hybrid launch technology that is capable of dramatically reducing the environmental impact of space launches. In addition to being environmentally friendly, the company’s technology enables regular and affordable access to orbit. If RDX’s Aurora is successfully developed, Maritime Launch will be able to offer RDX’s unique, green fuel technology to its satellite clients at a competitive cost.

“We couldn’t be more thrilled to partner with Reaction Dynamics for a series of launches starting with a demonstration launch in 2023. We are striving to build a carbon-neutral spaceport that will offer clients a competitive price to launch with access to the widest range of inclinations offered in North America,” said Stephen Matier.

With the LOI signed, both companies will now negotiate a definitive supply agreement to conduct small-class orbital launches from Spaceport Nova Scotia following the initial suborbital launch planned for Summer 2023. Maritime Launch is without a doubt the most interesting company I have written about in a while, which is especially refreshing given the state of the market.

Having only just recently listed on the NEO, the Company has reached a market capitalization of more than $76 million, trading over 866,000 shares on its first day. Moreover, as the space economy continues to grow, Maritime Launch has the Canadian market in the palm of its hand through Spaceport Nova Scotia, Canada’s first commercial spaceport. If you’d like to see more of Maritime Launch, let us know in the comments!

Maritime Launch’s share price opened at $0.20 today, up from a previous close of $0.195. The Company’s shares were down -2.56% and were trading at $0.19.