Tyler Reyno proposes establishing a Canadian rocket company called Open Space Orbital Inc. The presentation outlines a 13-year development plan to enter the smallsat launch market starting in year 6, with the goal of achieving 50 launches per year by year 13 at a cost of $2 million per launch. Reyno argues that a domestic launch capability is important for Canada's technological and economic future. A public-private partnership model is recommended to help develop critical infrastructure and space technologies.

1. Tyler Reyno
Queen’s Space Conference
February, 2016
Starting a Canadian Rocket Company
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2. Outline
•Introduction
•Main point
•Support of a domestic launch capability
•Proposed route of development
•Overview of a proposed solution
•Wrapping things up
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3. Introduction
•Tyler Reyno
• Open Space Orbital Inc.
• BEng (Mechanical)
• Ongoing MASc (Aeronautical)
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4. Main Point
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5. Main Point
•Domestic launch capability
•Discussed primarily in terms of a private
company
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6. Support Of A Domestic
Launch Capability
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7. •Resource-based economy (limited) vs.
progressive technology-based economy
(unlimited)
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Reasons Why It Makes Sense
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8. •Technological position among
international competitors
Technological Relevance
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9. •If nation doesn't apply evolutionary
pressure on itself, it remains in state of
neutrality
Technological Relevance
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10. •Political position among international
competitors
Political Relevance
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11. •Not mentioned among highest profile
nations like US, Russia and China
Political Relevance
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12. •Space program without access to space
Access
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13. •Ability to employ large amounts of
people with wide skill ranges + high level
intellect
Human Resources
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14. •Should want this degree of genius
working in-country
Human Resources
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15. •Last but not least, it’s necessary
•Tendency of something not growing is
to wither
It’s Necessary
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16. •Decline of space program if we only
focus on maintenance without
increasing value
It’s Necessary
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17. Proposed Route Of
Development
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18. •Entry through the smallsat launch
industry:
• Roughly 250% market growth over next 5
years
• Supported by off-the-shelf smallsat
solutions
• Smallsat market value (approx. $7.4B)
Entering the Launch Industry
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19. •Dedicated smallsat launchers seeing
increased demand
Entering the Launch Industry
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20. •Easiest access in term of economics:
*Image credit: Skybox Imaging
Market Accessibility
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21. •Other notes:
• Light lift most attractive among other lift
classes
• More in reach of Canada’s budget
• Low risk in terms of capital/resource loss
in case of failure
*Image credit: Skybox Imaging
Market Accessibility
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22. •Regulatory and logistic realities support
us
Regulations and Logistics
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23. •Greater political standing among many
European countries
Regulations and Logistics
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24. •In terms of developing progressively
more capable launch capabilities
Stepping Stone
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25. •There is market share available for
multiple smallsat launch capabilities
(private or public-private)
Competitive Analysis
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26. Overview of a
Theoretical Solution 26

27. Operations
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28. •13-year development timeline
•First launch slated for Year 6
Development Timeline
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29. Outsourcing
•Outsourcing key components in the
beginning leads to faster access to
market
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30. Proposed Outsourcing Strategy
•Main components:
• First stage engines
• COPV’s (fuel + oxidizer)
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31. Result
•In-house development programs:
• All other components: Year 1-5 (5 years)
• First stage engines: Year 4-8 (5 years)
• COPV’s: Year 6-10 (5 years)
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32. •Two primary locations:
• Engineering and development facility
• Corresponding spaceport
Establishment
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33. •Close proximity between manufacturing
and launch facilities
Establishment
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34. •Northern Nova Scotia is a good choice
•Located between North America and
European space markets
Location
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35. •SSO and PO accessibility (popular
destinations among smallsats)
•Flight path above the Atlantic Ocean
•Reasonable inclination
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Orbital Considerations

36. •Lean operation with talent located
under one roof is critical
•Main focus on high manufacturing and
launch frequencies
Operating Philosophy
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37. Engineering
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38. •No reliance on radical, untried
technologies
•Prioritize simplicity and reliability
Design Philosophy
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39. •90% of a vehicle’s cost comes in the last
10% of performance
Design Philosophy
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40. •91% of rocket failures attributed to
three areas:
• Propulsion
• Separation
• Avionics
Failure Modes
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41. •Pressure-fed propulsion systems
•Ablatively-cooled nozzles
•Vehicle engineering design with small
safety factors
Possible Simplification Methods
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42. •Two-stage format
•50 kg payload capacity
•14 m length, 0.9 m diameter
•13,500 kg vehicle mass
•90-second first stage burn time
Proposed Rocket Characteristics
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43. •New level of transportability
•Requirement for economically feasible
commercial smallsat launcher
Proposed Rocket Characteristics
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44. •First stage engine:
• 35,000 lbf first stage
thrust
• LOX/ethanol
• Pintle injector
• Sea level specific impulse
of 220 s
Proposed Propulsion Characteristics
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45. Financials
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46. •Always a matter of economics
•Limiting factor facing customer base is
launch cost
Economics
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47. •Human resources
•Supporting infrastructure and
technology
•Regulatory and legal considerations
Capital Requirements
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48. •5-year development timeline and
budget:
• Year 1: $2,000,000
• Year 2: $18,000,000
• Year 3: $11,000,000
• Year 4: $16,000,000
• Year 5: $10,000,000
•Total: $57,000,000
Proposed Financial Plan
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49. •Federal budget illustration:
• 2016: 0.41% of CSA budget
• 2017: 4.70% “
• 2018: 3.41% “
• 2019: 4.96% (extrapolated)
• 2020: 3.01% (extrapolated)
Public Enterprise
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50. •Value received over investment is high
•Development of:
• Critical new infrastructure
• Space-supporting resources and
technology
Public Enterprise
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51. •Operational and pricing target:
• $2,000,000 launch cost
• $40,000 per kg at 50 kg total payload
capacity
• 50 launches per year (approx. weekly
launches)
Business Goal
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52. •Progressively increase launch rate:
• Year 1-5: No launches
• Year 6-8: 3 launches per year
• Year 9-10: 6 launches per year
• Year 11: 18 launches per year
• Year 12: 30 launches per year
• Year 13+: 50 launches per year
Launch Rate Strategy
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53. •Progressively decrease cost:
• Year 1-5: No launches
• Year 6-8: $6M per launch (3 launches )
• Year 9-10: $5M per launch (6
• Year 11: $4M per launch (18
• Year 12: $3M per launch
• Year 13+: $2M per launch (50
lyear)
Pricing Strategy
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54. •Progressively refined profit margins:
• Year 1-5: No launches
• Year 6-8: 11.8% (3 launches per year)
• Year 9-10: 30.8% (6 launches per year)
• Year 11: 72.5% (18 launches per year)
• Year 12: 48.3% (30 launches per year)
• Year 13+: 59.8% (50 launches per year)
Profit Margins
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55. • Progressively increase launch rate while decreasing
cost
• Year 1-5: No launches
• Year 6-8: $6M per launch (3 launches per year)
• Year 9-10: $5M (6 launches per year)
• Year 11: $4M (18 launches per year)
• Year 12: $3M (30 launches per year)
• Year 13+: $2M (50 launches per year)
•119 performed launches
Stage
Employment
Spending
($M)
Operational
Spending
($M)
R&D
Spending
($M)
Total
Spending
($M)
Gross
Revenue
($M)
Net Revenue
($M)*
Net Revenue
($M) [After
Taxes]*
Year 6-13 101.4 15.5 170.365 287.265 583 280.95 210.71
Launch Period Spending
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56. 2028+ (Year 13+) Financial Summary
Employment spending (per year) $13M
Operational spending (per year) $0.05M
R&D spending (per year) $27.125M
Total spending (per year) $40.175M
Gross revenue (per year) $100M
Net revenue (per year)* $56.834M
Net revenue (per year) [After Taxes]* $42.625M
Price per launch $2M
Expenditure per launch $0.804M
Average profit per launch $1.196M
Average profit per launch assuming 5% failure $1.136M
Average profit per launch (5% failure) after taxes [25%]) $0.852M
Yearly profit (after taxes) $42.625M
Proposed Financial Plan Summary
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57. 2028+ (Year 13+) Financial Summary
Employment spending (per year) $13M
Operational spending (per year) $0.05M
R&D spending (per year) $27.125M
Total spending (per year) $40.175M
Gross revenue (per year) $100M
Net revenue (per year)* $56.834M
Net revenue (per year) [After Taxes]* $42.625M
Price per launch $2M
Expenditure per launch $0.804M
Average profit per launch $1.196M
Average profit per launch assuming 5% failure $1.136M
Average profit per launch (5% failure) after taxes [25%]) $0.852M
Yearly profit (after taxes) $42.625M
Proposed Financial Plan Summary
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58. •*Net revenues consider 95% mission
success rate
•Year 13+ profit margin is 59.8%
•Cash positive at Year 6
•Maximum market share of 16%
Details
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59. Wrapping Things Up
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60. Review
•Illustration:
• Need for a domestic launch capability
• Potential operational, engineering and
financial philosophies
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61. Review
•The time is right for this sort of
advancement
•The technologies exist
•The talent exists
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62. Review
•Study of economic feasibility suggests
there may be impressive ROI
•Forward thinking and commercialization
will support us
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63. •It’s going to have to be public-private
My Thoughts
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64. •Public-private better in terms of:
• International government cooperation
• True growth of Canada’s space program
My Thoughts
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65. Thank You
•QSC sponsors and delegates
•Attendees
•Company members, partners and
supporters
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66. Tyler Reyno, Founder and CEO
+1 (902) 499-7671
info@openspaceorbital.com
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