A mothballed spaceport in the Highlands that was intended to launch the first homegrown rocket from Scotland could be subject to a bidding war as its operator prepares to enter administration.
The aerospace company Orbex may hang on to the lease for the Sutherland Spaceport so it can be sold separately, it has emerged.
The rocket start-up, which has its headquarters in Forres, Moray, is looking at appointing administrators after failing to secure sufficient funding, despite having been handed £26 million in government loans last year. More than 150 jobs are at risk.
It is believed the Sutherland Spaceport, which has been only partially built on an expanse of peat bog on the A’Mhoine peninsula, is a valuable asset in its own right.
Orbex is believed to have had about 20 expressions of interest in the site’s lease. Among them is Glasgow-based rockets manufacturer Skyrora, which is exploring buying “select assets” from Orbex, including its Sutherland Spaceport project.
Orbex said in December 2024 it had paused its plans to build the satellite launch site near Tongue, but would retain the lease to construct and operate the base.
In a complex leasing deal, the landowner, Melness Crofters’ Estate, receives about £70,000 a year for the 86-acre site from the project leader, Highlands and Islands Enterprise (HIE).
Sutherland Spaceport under construction in Moine, Sutherland
ALAMY
In turn, Orbex’s offshoot, Sutherland Spaceport Ltd (SSL), has a long sub-lease from HIE, which will run for 50 years, with an option to extend for a further 25 years.
The firm pays HIE the equivalent of what the public agency pays the crofters, so there is a net neutral cost to the taxpayer. But there is a break clause in 2027 in SSL’s favour.
It appears the crofters will continue to receive their money for the time being, because their lease deal is directly with HIE, while Orbex could separately sell its lease to a new operator.
A spokesman for HIE, which gave Orbex £1.9 million for the site project, confirmed: “The lease for the Sutherland site is with Sutherland Spaceport Limited, a subsidiary of Orbital Express Launch Ltd (Orbex). We understand from the announcement by Orbex that their intention to appoint administrators does not extend to SSL.
“The tenant (SSL) has a break clause in the lease after five years, so 2027. HIE would only break the lease if there was a breach or default.”
A spokesperson for Orbex said: “Matters relating to the lease of the Sutherland Spaceport are best directed to Highlands and Islands Enterprise, as head leaseholder, and to the administrators once appointed. We are unable to comment further on this matter at this time.”
Skyrora has said its potential asset acquisition of the Sutherland site could involve up to £10 million worth of investment. The company, which has a manufacturing facility in Cumbernauld, said its move would ensure Orbex technology and the spaceport remained under UK ownership.
It also said its bid would safeguard products that had received public funding.
Jack-James Marlow, Skyrora’s chief operating officer, said his company was committed to providing “reliable, independent” access to space. Skyrora designs and builds rockets to carry small satellites into space.
In May 2020 the company carried out the UK’s first complete ground rocket test in 50 years. The 11m- tall Skylark-L rocket was tested at Kildermorie Estate, near Alness, in the Highlands.
The rocket performed all the actions of a launch while restrained to the ground to prevent it from taking off.
Orbex has been planning the first launch of its Prime rocket later this year at SaxaVord Spaceport in Shetland — after controversially switching from Sutherland — with the prospect of becoming a commercial launch vehicle for satellites.
Skyrora said it was “ready to protect UK space capabilities by expressing interest in acquiring Orbex assets”.
“Skyrora is exploring an asset acquisition, which would see the established operator invest up to £10 million, subject to discussions with the appointed administrators and completion of the necessary due diligence and legal processes,” it said.
“Skyrora believes that securing select assets is vital to preserving UK space capability, protecting national critical infrastructure, and ensuring that technology and IP developed in the UK remains under UK ownership.”