starting a canadian rocket company (finished)
TRANSCRIPT
![Page 1: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/1.jpg)
1
Tyler ReynoQueen’s Space Conference
February, 2016
Starting a Canadian Rocket Company
![Page 2: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/2.jpg)
2
Outline• Introduction•Main point• Support of a domestic launch capability•Proposed route of development•Overview of a proposed solution•Wrapping things up
1
![Page 3: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/3.jpg)
3
Introduction• Tyler Reyno• Open Space Orbital Inc.• BEng (Mechanical)• Ongoing MASc (Aeronautical)
![Page 4: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/4.jpg)
4
Main Point
![Page 5: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/5.jpg)
5
Main Point•Domestic launch capability•Discussed primarily in terms of a private
company
![Page 6: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/6.jpg)
6
Support Of A Domestic Launch
Capability
![Page 7: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/7.jpg)
7
•Resource-based economy (limited) vs. progressive technology-based economy (unlimited)
2Reasons Why It Makes Sense
![Page 8: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/8.jpg)
8
•Technological position among international competitors
Technological Relevance
![Page 9: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/9.jpg)
9
•If nation doesn't apply evolutionary pressure on itself, it remains in state of neutrality
Technological Relevance
![Page 10: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/10.jpg)
10
•Political position among international competitors
Political Relevance
![Page 11: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/11.jpg)
11
•Not mentioned among highest profile nations like US, Russia and China
Political Relevance
![Page 12: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/12.jpg)
12
• Space program without access to space
Access
![Page 13: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/13.jpg)
13
•Ability to employ large amounts of people with wide skill ranges + high level intellect
Human Resources
![Page 14: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/14.jpg)
14
•Should want this degree of genius working in-country
Human Resources
![Page 15: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/15.jpg)
15
• Last but not least, it’s necessary• Tendency of something not growing is
to wither
It’s Necessary
![Page 16: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/16.jpg)
16
•Decline of space program if we only focus on maintenance without increasing value
It’s Necessary
![Page 17: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/17.jpg)
17
Proposed Route Of Development
![Page 18: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/18.jpg)
18
• Entry through the smallsat launch industry: • Roughly 250% market growth over next 5
years• Supported by off-the-shelf smallsat
solutions• Smallsat market value (approx. $7.4B)
Entering the Launch Industry
![Page 19: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/19.jpg)
19
•Dedicated smallsat launchers seeing increased demand
Entering the Launch Industry
![Page 20: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/20.jpg)
20
• Easiest access in term of economics:
*Image credit: Skybox Imaging
Market Accessibility
![Page 21: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/21.jpg)
21
•Other notes:• Light lift most attractive among other lift
classes•More in reach of Canada’s budget• Low risk in terms of capital/resource loss
in case of failure
*Image credit: Skybox Imaging
Market Accessibility
![Page 22: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/22.jpg)
22
•Regulatory and logistic realities support us
Regulations and Logistics
![Page 23: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/23.jpg)
23
•Greater political standing among many European countries
Regulations and Logistics
![Page 24: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/24.jpg)
24
• In terms of developing progressively more capable launch capabilities
Stepping Stone
![Page 25: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/25.jpg)
25
• There is market share available for multiple smallsat launch capabilities (private or public-private)
Competitive Analysis
![Page 26: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/26.jpg)
26
Overview of a Theoretical
Solution
![Page 27: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/27.jpg)
27
Operations
![Page 28: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/28.jpg)
28
•13-year development timeline•First launch slated for Year 6
Development Timeline
![Page 29: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/29.jpg)
29
Outsourcing•Outsourcing key components in the
beginning leads to faster access to market
![Page 30: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/30.jpg)
30
Proposed Outsourcing Strategy•Main components:• First stage engines• COPV’s (fuel + oxidizer)
![Page 31: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/31.jpg)
31
Result• In-house development programs:• All other components: Year 1-5 (5 years)• First stage engines: Year 4-8 (5 years)• COPV’s: Year 6-10 (5 years)
![Page 32: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/32.jpg)
32
• Two primary locations:• Engineering and development facility• Corresponding spaceport
Establishment
![Page 33: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/33.jpg)
33
•Close proximity between manufacturing and launch facilities
Establishment
![Page 34: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/34.jpg)
34
•Northern Nova Scotia is a good choice• Located between North America and
European space markets
Location
![Page 35: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/35.jpg)
35
• SSO and PO accessibility (popular destinations among smallsats)• Flight path above the Atlantic Ocean•Reasonable inclination
Orbital Considerations
![Page 36: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/36.jpg)
36
• Lean operation with talent located under one roof is critical•Main focus on high manufacturing and
launch frequencies
Operating Philosophy
![Page 37: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/37.jpg)
37
Engineering
![Page 38: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/38.jpg)
38
•No reliance on radical, untried technologies•Prioritize simplicity and reliability
Design Philosophy
![Page 39: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/39.jpg)
39
•90% of a vehicle’s cost comes in the last 10% of performance
Design Philosophy
![Page 40: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/40.jpg)
40
•91% of rocket failures attributed to three areas:• Propulsion• Separation• Avionics
Failure Modes
![Page 41: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/41.jpg)
41
•Pressure-fed propulsion systems •Ablatively-cooled nozzles •Vehicle engineering design with small
safety factors
Possible Simplification Methods
![Page 42: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/42.jpg)
42
• Two-stage format •50 kg payload capacity •14 m length, 0.9 m diameter •13,500 kg vehicle mass•90-second first stage burn time
Proposed Rocket Characteristics
![Page 43: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/43.jpg)
43
•New level of transportability •Requirement for economically feasible
commercial smallsat launcher
Proposed Rocket Characteristics
![Page 44: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/44.jpg)
44
• First stage engine:• 35,000 lbf first stage
thrust• LOX/ethanol• Pintle injector• Sea level specific impulse
of 220 s
Proposed Propulsion Characteristics
![Page 45: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/45.jpg)
45
Financials
![Page 46: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/46.jpg)
46
•Always a matter of economics• Limiting factor facing customer base is
launch cost
Economics
![Page 47: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/47.jpg)
47
•Human resources• Supporting infrastructure and
technology•Regulatory and legal considerations
Capital Requirements
![Page 48: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/48.jpg)
48
•5-year development timeline and budget:• Year 1: $2,000,000• Year 2: $18,000,000• Year 3: $11,000,000• Year 4: $16,000,000• Year 5: $10,000,000
• Total: $57,000,000
Proposed Financial Plan
![Page 49: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/49.jpg)
49
• Federal budget illustration:• 2016: 0.41% of CSA budget• 2017: 4.70% “• 2018: 3.41% “• 2019: 4.96% (extrapolated)• 2020: 3.01% (extrapolated)
Public Enterprise
![Page 50: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/50.jpg)
50
•Value received over investment is high•Development of:• Critical new infrastructure• Space-supporting resources and
technology
Public Enterprise
![Page 51: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/51.jpg)
51
•Operational and pricing target:• $2,000,000 launch cost• $40,000 per kg at 50 kg total payload
capacity • 50 launches per year (approx. weekly
launches)
Business Goal
![Page 52: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/52.jpg)
52
•Progressively increase launch rate:• Year 1-5: No launches• Year 6-8: 3 launches per year• Year 9-10: 6 launches per year• Year 11: 18 launches per year• Year 12: 30 launches per year• Year 13+: 50 launches per year
Launch Rate Strategy
![Page 53: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/53.jpg)
53
•Progressively decrease cost:• Year 1-5: No launches• Year 6-8: $6M per launch (3 launches )• Year 9-10: $5M per launch (6 • Year 11: $4M per launch (18 • Year 12: $3M per launch • Year 13+: $2M per launch (50
lyear)
Pricing Strategy
![Page 54: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/54.jpg)
54
•Progressively refined profit margins:• Year 1-5: No launches• Year 6-8: 11.8% (3 launches per year)• Year 9-10: 30.8% (6 launches per year)• Year 11: 72.5% (18 launches per year)• Year 12: 48.3% (30 launches per year) • Year 13+: 59.8% (50 launches per year)
Profit Margins
![Page 55: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/55.jpg)
55
• Progressively increase launch rate while decreasing cost • Year 1-5: No launches• Year 6-8: $6M per launch (3 launches per year)• Year 9-10: $5M (6 launches per year)• Year 11: $4M (18 launches per year)• Year 12: $3M (30 launches per year) • Year 13+: $2M (50 launches per year)
•119 performed launches
Stage
Employment Spending ($M)
Operational Spending ($M)
R&D Spending ($M)
Total Spending ($M)
Gross Revenue ($M)
Net Revenue ($M)*
Net Revenue ($M) [After Taxes]*
Year 6-13 101.4 15.5 170.365 287.265 583 280.95 210.71
Launch Period Spending
![Page 56: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/56.jpg)
56
2028+ (Year 13+) Financial Summary
Employment spending (per year) $13MOperational spending (per year) $0.05MR&D spending (per year) $27.125MTotal spending (per year) $40.175MGross revenue (per year) $100MNet revenue (per year)* $56.834MNet revenue (per year) [After Taxes]* $42.625MPrice per launch $2MExpenditure per launch $0.804MAverage profit per launch $1.196MAverage profit per launch assuming 5% failure $1.136MAverage profit per launch (5% failure) after taxes [25%]) $0.852MYearly profit (after taxes) $42.625M
Proposed Financial Plan Summary
![Page 57: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/57.jpg)
57
2028+ (Year 13+) Financial Summary
Employment spending (per year) $13MOperational spending (per year) $0.05MR&D spending (per year) $27.125MTotal spending (per year) $40.175MGross revenue (per year) $100MNet revenue (per year)* $56.834MNet revenue (per year) [After Taxes]* $42.625MPrice per launch $2MExpenditure per launch $0.804MAverage profit per launch $1.196MAverage profit per launch assuming 5% failure $1.136MAverage profit per launch (5% failure) after taxes [25%]) $0.852MYearly profit (after taxes) $42.625M
Proposed Financial Plan Summary
![Page 58: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/58.jpg)
58
• *Net revenues consider 95% mission success rate• Year 13+ profit margin is 59.8%•Cash positive at Year 6•Maximum market share of 16%
Details
![Page 59: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/59.jpg)
59
Wrapping Things Up
![Page 60: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/60.jpg)
60
Review• Illustration:• Need for a domestic launch capability• Potential operational, engineering and
financial philosophies
![Page 61: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/61.jpg)
61
Review• The time is right for this sort of
advancement• The technologies exist• The talent exists
![Page 62: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/62.jpg)
62
Review• Study of economic feasibility suggests
there may be impressive ROI• Forward thinking and commercialization
will support us
![Page 63: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/63.jpg)
63
• It’s going to have to be public-private
My Thoughts
![Page 64: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/64.jpg)
64
•Public-private better in terms of:• International government cooperation • True growth of Canada’s space program
My Thoughts
![Page 65: Starting a Canadian Rocket Company (Finished)](https://reader036.vdocuments.net/reader036/viewer/2022062400/58d1c6fb1a28ab705c8b516f/html5/thumbnails/65.jpg)
65
Thank You•QSC sponsors and delegates•Attendees•Company members, partners and
supporters