Interstellar Insights - January 2025
Pentagon seeks commercial space technology to enhance military capabilities.
As China's significant investments in its commercial space sector have raised concerns about technological competition, the Department of Defense is increasing its efforts to partner with emerging commercial space startups.
Major General Steven J. Butow, Director of the Defense Innovation Unit’s space portfolio, stated during a SpaceNews webinar that the commercial space market is still nascent and requires substantial investment. He stressed the importance of focusing on economic competition with China, which is heavily investing in its commercial space sector for both economic returns and military capabilities.
To help streamline the process, the US Space Force’s Space Systems Command has expanded its “Front Door” initiative – an online platform aimed at simplifying the process for commercial companies to share their solutions and technologies with the Department of Defense and other government agencies. The initiative now includes over 20 government agencies.
Orbital warehouses are among the technologies gaining attention among commercial companies. SpaceWERX, an innovation arm of the Air Force Research Laboratory, awarded a $71 million contract to a California-based startup to develop this capability. SpaceWERX is considering deploying up to 30 orbital warehouses, capable of delivering cargo anywhere on earth within 30 minutes via reusable reentry capsules. In general, such warehouses could help enable rapid delivery of supplies to strategic regions, particularly in the Indo-Pacific.
Federal Communications Commission (FCC) grants more spectrum for commercial space launches.
The FCC's recent decision to allocate additional spectrum for commercial launches may significantly impact companies within the space industry.
By providing more bandwidth for communications to and from launch and reentry vehicles, the FCC aims to more easily allow companies to access the necessary spectrum, potentially leading to increased competition and innovation within the industry.
However, because the new spectrum allocation is on a secondary basis, companies will need to navigate potential interference issues with current aircraft and missile testing applications. Taking the necessary steps to avoid such interference could add complexity to companies’ operations.
As launch cadence accelerates and more private companies enter the market, having dedicated frequency bands during launches may help ensure reliable communications and safer operations. This expanded spectrum access removes a potential bottleneck in launch operations and may demonstrate how regulatory frameworks must evolve to keep pace with commercial space innovation.
US National Geospatial-Intelligence Agency announces a major contract for satellite data.
On January 15, 2025, the US National Geospatial-Intelligence Agency (NGA) announced a $200 million contract to supply commercial satellite data and analytics, signaling a shift in how the agency acquires critical national security information.
Under the five-year contract, titled Luna B, the companies will compete for task orders to provide satellite imagery analysis and insights, reducing NGA’s traditional reliance on classified data. This contract follows a $290 million procurement (Luna A) announced in September and reflects the intelligence community’s increasing acceptance and usage of commercial space technology.
The NGA, which provides geospatial intelligence to military and civilian decision makers, will use the commercial data to monitor global economic activities, military movements, and environmental changes.
Many commercial satellite companies rely on government contracts, particularly from defense and intelligence agencies. Such contracts can provide revenue streams to support innovation and expand capabilities within the increasingly competitive space sector. The NGA’s investment in this space aims to enable companies to develop next-generation satellite technologies while building sustainable business models.
The future of commercial space training and research.
As part of its plan to build a multimillion-dollar commercial astronaut training complex, Blue Abyss, a research pool planned for construction in Cornwall, England, has entered into a partnership and Space Act Agreement (SAA) with NASA’s Glenn Research Center to advance commercial space training and research. SAAs allow NASA to partner with entities to advance its mission and program objectives.
The agreement outlines NASA and Blue Abyss’ goal to explore solutions addressing challenges in low earth orbit and Martian, lunar, and cis-lunar environments. The two organizations will also focus on:
- Commercial capabilities for astronaut selection and training
- Human performance and biological and physical sciences under extreme gravity conditions, and
- Advanced simulation facilities.
This collaboration marks a milestone in space research and highlights NASA’s interest in expediting progress and innovation through commercial space company partnerships.
