Canada invests in space launch SMEs, sovereign launch capability

Canada’s Department of National Defence (DND) announced on 16 March the winners of its ‘Launch the North’ contest to develop sovereign space launch capabilities by 2028. 

The contest supports the DND’s aims to reinforce Canada’s strategic autonomy, stimulate dual-use innovation, and position the country as a leader in aerospace technology.  

Three small and medium-sized enterprises (SMEs) – Canada Rocket Company, NordSpace, and Reaction Dynamics – succeeded in the first round of the multi-year contest, with each now required to progress their ideas from concept to prototype. Each company will receive CAD8.3 million in funding to support this. 

The DND expects that this will lay the groundwork for a medium-lift launch contest in the coming years, as it seeks to make Canada a hub of expertise for small-scale satellite capabilities. 

Funding for Launch the North is set to rise from CAD25 million in 2025–26 to CAD40 million in both 2026–27 and 2027–28.

In the same announcement, the DND also revealed it had awarded CAD200 million to Maritime Launch Services to provide a dedicated satellite launchpad for the Canadian Government at its Nova Scotia spaceport. 

This facility will primarily serve the Canadian Armed Forces, with ad-hoc access possible for allies and partners. 

Commenting on these developments, and their focus on sovereign capability development, David McGuinty, Minister of National Defence, said: “In the decades ahead, our security, our prosperity, and our sovereignty will increasingly extend beyond our atmosphere.” 

This follows the recent release of Canada’s first-ever Defence Industrial Strategy in February, focused on bolstering domestic production.