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Blue Origin, the rocket company owned by Jeff Bezos, the founder of Amazon, is actively searching for a suitable site to construct an international launch facility. The aim is to compete in the space industry with Elon Musk’s SpaceX.
Moreover, Blue Origin’s CEO, Bob Smith, mentioned in an interview with the Financial Times that the company is pursuing new partnerships and acquisitions in Europe and other locations. This strategy is intended to hasten the expansion of their space services, including launch and engine businesses.
Smith stated, “We are looking for opportunities that allow us to scale up and better serve our customers. The focus is on accelerating our roadmap rather than solely on size.”
The search for a launch site is still in its early stages, and no specific location has been chosen yet.
Blue Origin’s proactive approach signifies a shift in strategy for the company, which was established by Bezos in 2000. Although Blue Origin was the first company to successfully launch, land, and reuse a rocket, delays in launcher development have resulted in lagging behind SpaceX. SpaceX has already accomplished numerous successful crewed and unmanned missions to the International Space Station.
Analysts suggest that pursuing further acquisitions and partnerships, in addition to establishing another launch site alongside their existing facilities in Texas and Florida, could be a means for Blue Origin to catch up.
Caleb Henry, director of research at Quilty Space, believes that Blue Origin’s expansion into Europe can also help the company tap into new talent, considering the fierce competition in the industry for skilled professionals. He stated, “Europe is known for its pool of space professionals, making it an ideal region for growth.”
Acquisitions also reflect a change in mindset for Blue Origin. Last year, the company acquired Honeybee Robotics, a space-based robotics systems company. Henry added, “Blue Origin wants to expand and collaborate more with partners. To achieve that, they need to bring in skillsets from outside Blue Origin.”
Over the past five years, the CEO of Blue Origin, who previously worked at Honeywell Aerospace, has been aggressively expanding the company’s operations. The goal is to transform it from a research organization into a fully-fledged business. Aside from developing rockets and engines for cargo and crew transportation to space, Blue Origin is leading a consortium to construct a commercial space station. The company was also recently awarded a $3.4 billion contract by NASA to build a lunar lander for human missions to the moon’s surface.
In another interview at the FT’s Investing in Space summit, Smith disclosed that Blue Origin has “hundreds of millions in revenue as well as billions of dollars in orders.” However, he acknowledged the need to accelerate progress in the launch business to meet customer demands. Amazon’s satellite broadband project, Project Kuiper, has chosen Blue Origin’s upcoming heavy-lift orbital rocket, New Glenn, for a minimum of 12 launches over five years. The first flight of New Glenn is expected in 2024, following several years of delay.
Smith emphasized the challenge of increasing the production and launch cadence to fulfill orders and satisfy customers. Blue Origin is exploring acquisitions and partnerships in various areas, from manufacturing to software, in addition to expanding its services in new regions like Europe. Smith expressed the potential in Europe, saying, “We see great opportunities in Europe, although selling space services there is not as clear-cut as in the United States.”
Blue Origin will need to act swiftly as SpaceX prepares for the second flight of its superjumbo rocket, Starship. The initial launch in April ended in failure when the vehicle exploded four minutes after liftoff. However, once Starship becomes operational, its 100-tonne capacity is expected to significantly impact launch pricing.
Smith expressed confidence in New Glenn’s ability to compete with Starship, stating, “We have a robust order book and can continue expanding it.”
In terms of revenue, Blue Origin is generating income from its New Shepard suborbital launcher, which has completed 23 missions and carried approximately 31 individuals beyond the Kármán line, marking the boundary of space.
Although the launcher was temporarily grounded after an unsuccessful unmanned mission in September, it is expected to resume unmanned flights in the coming weeks. Crewed flights could then commence about six weeks after a successful unmanned flight, according to Smith.
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