Moray firm Orbex has scrapped the construction of a £17 million spaceport in Sutherland which was expected to create 250 jobs.
The company said it will switch its launch operations to SaxaVord Spaceport in Shetland.
Sutherland Spaceport was first granted planning permission in 2020 and Orbex started work last April.
Once fully operational, the spaceport was expected to create around 250 jobs, including 40 in Sutherland and Caithness.
And last month, rejigged plans were approved despite protests from Scotland’s largest landowner Anders Polvsen.
The new plans meant repositioning the launch site and relocating antennas to Ben Tongue’s summit.
However, it has now decided to pause construction of its own spaceport in Sutherland and will instead launch its first rockets from Shetland.
The news has already been described as “unwelcome news” and “completely out of the blue”.
What fuelled the rocket firm’s decision?
Orbex chief executive Phillip Chambers believes the firm’s latest decision to switch its focus is a “win-win” for UK and Scottish space.
He said: “Orbex is first and foremost a launch services specialist.
“Our primary goal is to support the European space industry by achieving a sustainable series of satellite launches into low Earth orbit.
“This is best achieved by focusing our resources and talents on developing launch vehicles and associated launch services.
“This decision will help us to reach first launch in 2025 and provides SaxaVord with another customer to further strengthen its commercial proposition.”
Mr Chambers reaffirmed the space firm’s commitment to the north of Scotland and its headquarters in Forres.
He added: “The decision to pause construction was not taken lightly.
“We are incredibly grateful to the Sutherland community for being so supportive of our initial plans to build our first spaceport there.”
Orbex said the decision will also enable it to direct more funding into the development of a new medium-sized launch vehicle called Proxima.
The rocket firm is in dialogue with the three staff employed on the project to identify options for relocation or new roles.
Sutherland Spaceport being scrapped is ‘unwelcome news’ for local MP
Jamie Stone, Liberal Democrat MP for Caithness, Sutherland and Easter Ross, said the “unwelcome news is completely out of the blue”.
He said: “Only in recent days Orbex were talking with confidence about their first launch from Sutherland next year.
“This will be incredibly disappointing for the communities on the north coast – including much of Caithness.
“Because high quality future employment is the only way to halt and reverse the age-old spectre of Highland depopulation.
“However, I invested a great deal of time and energy in backing the Sutherland space launch site ever since I was first elected to the House of Commons seven years ago.
“I owe it to my constituents to make the greatest effort I humanly can to ensure that this is not the end of the story for Sutherland space launch.”
Mr Stone also plans to meet with Highlands and Islands Enterprise (HIE) as soon as he can to find an alternative rocket launch enterprise to take on Sutherland Spaceport.
Orbex confirmed it will retain its lease to build and operate its own spaceport at Sutherland in order to give it “flexibility to increase launch capacity” in the future.
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