Jeff Bezos’s Blue Origin has landed a significant contract.
The BE-4 engines developed by his company will be utilized in United Launch Alliance’s Vulcan Centaur, a new series of rockets aiming to better compete with Elon Musk’s SpaceX in terms of pricing. The inaugural launch is scheduled for 2020.
The contract with ULA represents a noteworthy endorsement for Bezos’s space venture.
“We are thrilled to have our BE-4 engine chosen by United Launch Alliance. They are the leading launch service provider for national security missions, and we are excited to be part of their team for that mission,” stated Blue Origin CEO Bob Smith during the announcement on Thursday.
ULA, a partnership between well-established government contractors Boeing (BA) and Lockheed Martin (LMT), competes with SpaceX in launching sensitive national security satellites for the US government.
However, the company had to depend on Russian-made RD-180 engines for its Atlas V rocket, which has caused some political complications for ULA.
Bezos, who has stated he’s financing Blue Origin by selling approximately $1 billion of his Amazon stock (AMZN) annually, faced competition for the contract from space firm Aerojet Rocketdyne (AJRD), which has a rich history in providing propulsion technology for NASA and current ULA rockets.
“ULA has selected the best systems available to create the Vulcan Centaur,” said ULA CEO Tory Bruno in a statement on Thursday.
A Significant Victory for Blue
Blue Origin’s success was not entirely unexpected. The BE-4 engine is more advanced in development than its Aerojet counterpart, the AR1, and is projected to be cheaper to produce.
Bruno had previously voiced his preference for Blue’s BE-4 over Aerojet’s AR1.
The announcement “is quite meaningful,” stated Bill Ostrove, a space analyst with Forecast International. “The fact that [Blue Origin] was able to outperform such an established player like Aerojet…is a significant achievement for a startup.”
Founded by Bezos in 2000, Blue Origin has conducted only test flights of its suborbital New Shepard rocket, which is intended for short, scenic flights for tourists.
The BE-4, a powerful rocket engine designed for heavy launch vehicles, has been under development since 2011 and achieved its first test fire last year.
Winning this contract allows Blue Origin to proceed with plans for a large manufacturing facility in Huntsville, Alabama. The company announced in July last year that it would construct a 200,000 square foot facility that could create up to 400 manufacturing jobs, contingent on securing the ULA contract.
Additionally, Blue Origin will now be in a strong position to produce BE-4 engines for two distinct rockets that will inevitably compete for launch contracts.
Besides supplying ULA’s Vulcan, the BE-4 will also power Blue Origin’s own heavy-lift rocket, New Glenn.
These rockets will face off against competitors such as SpaceX and Northrop Grumman (NOC) for valuable military launch contracts.
‘A Major Setback’
Blue Origin’s success signifies a “major setback” for Aerojet, as it effectively removes the company from competition in developing main engines for these heavy-lift launch vehicles, according to Ostrove.
SpaceX manufactures its engines in-house for its Falcon rockets, while Northrop Grumman is anticipated to do the same for its OmegA rocket.
Nevertheless, Aerojet retains a robust portfolio in producing smaller engines, including one designated for the Vulcan’s upper stage and engines for NASA’s Space Launch System.
Steve Warren, Aerojet’s VP of communications, indicated that the AR1 could still serve as a power source for medium-lift launch vehicles.
“This could easily become America’s go-to engine,” he commented.
However, Ostrove remains doubtful, stating, “It’s challenging to envision a market for it.” He added, “Activity in that medium-class launch market is quite limited.”
CNNMoney (New York) First published September 27, 2018: 7:03 PM ET
