Ministers have welcomed a "new era for space in Scotland" as Shetland's SaxaVord has secured the first licence for vertical rocket launches from UK soil.

The move brings next year's planned launches from the northernmost of the inhabited British Isles a step closer to reality, though SaxaVord has yet to obtain a separate range licence to clear rockets for movement through UK airspace. A spokesman for the company said that is expected to come in the spring.

The licence from the Civil Aviation Authority (CAA) means the privately-owned spaceport is verified to have met the safety and environmental requirements for vertical space launches, the most common type of launch that most people are familiar with. This differs from horizontal launches which are typically operated out of airports, where a plane may fly over adverse weather and then release a rocket from underneath one of its wings.

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Spaceport Cornwall was the first to receive a UK licence in November 2022 to host Virgin Orbit's LauncherOne horizontal launch system. SaxaVord is currently scheduled to host the UK's first vertical launch for Germany's Rocket Factory Augsburg in the third quarter of next year, followed by the launch by another German rocket manufacturer, HyImpulse, in the final three months of 2024.

“This milestone heralds a new era for space in Scotland," innovation minister Richard Lochhead said. "As the UK’s first licensed vertical spaceport, SaxaVord and Scotland can soon be a gateway to space, deploying cutting edge small satellites into orbit for international and domestic customers alike."

He added that space is a "great opportunity" for economic development in Scotland, with the aim of creating a multi-billion pound space industry in this country. Space-related activities currently generate more than £250 million in annual revenues and employ about 8,500 people in upstream and downstream space activity in Scotland.

Currently employing 60 people, SaxaVord's biggest shareholder is Danish fashion industry billionaire Anders Povlsen. Headed by chief executive Frank Strang, the company has spent £33m to date on the construction of three launch pads and is in the process of raising further private investment.

“The award of our spaceport licence is both historic for Shetland, Scotland and the UK and places us firmly at the leading edge of the European and global space economy," Mr Strang said.

“And importantly for me it is also a fantastic achievement by our operations and licencing team led by Scott Hammond who have been working tirelessly alongside the UK Civil Aviation Authority for almost three years to secure this award.

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“Our team is very proud that the government has entrusted us with operating a complex, multi-disciplinary and multi-launch spaceport and we all take this responsibility very seriously. There is much to do still but this is a fantastic way to end the year and head into Christmas.”

SaxaVord is licensed for up to 30 launches per  year and will cater for companies looking to launch satellites into polar, sun-synchronous orbits. 

Tim Johnson, director of space regulation at the CAA, said: "Granting SaxaVord their licence is an era-defining moment for the UK space sector. This marks the beginning of a new chapter for UK space as rockets may soon launch satellites into orbit from Scotland."