Canada's launch industry is getting a serious look from Ottawa as trade tensions with the US push the government to secure sovereign access to space. Under the Launch the North program, the government this spring awarded initial contracts totaling $8.33M CAD to NordSpace, Reaction Dynamics, and Canada Rocket Company. The awards are modest, but the government has signaled larger ones to come.
Toronto-based Canada Rocket Company has decided to use its award as a springboard to a more ambitious vehicle. CEO Hugh Kolias said that after consulting roughly 150 engineers, the company concluded that building a small rocket would not meaningfully de-risk a larger program, and that about 90% of the work would be discarded. Instead, it is developing the R-2, a medium-lift rocket resembling SpaceX's Falcon 9, with nine methane-fueled engines, landing legs for eventual reuse, and a capacity of 12.5 metric tons to low-Earth orbit. The company says it could be ready to launch by 2032.
On the business side, Canada Rocket Company remains small, with about 30 employees, including a core of Canadian rocket scientists who previously worked at SpaceX, Blue Origin, and Rocket Lab and have returned. It has raised $22.5M to date and is launching a Series A round. The company also announced a $30M test facility near London, Ontario, named after astronaut Jeremy Hansen, with engine testing planned to begin in about two years. Kolias said the Canadian government might eventually put as much as half a billion dollars behind sovereign launch capability, along with some guarantee of launch contracts. The strategic rationale is clear: after decades of relying on American rockets, Canada wants the option to launch its own.