Canada Aims for Sovereign Space Launch Capability to Lead Medium-Lift Market

At the Canadian Space Launch Conference in Ottawa (May 5), founders of three emerging firms—NordSpace, Canada Rocket Company, and Reaction Dynamics—outlined a vision for fully Canadian launch services. The panel argued that reliance on foreign providers “creates a house of cards” and that domestic rockets would enable Canada to launch payloads from its own soil without external permission.

First Canada, then the world: nation’s rocket builders see a bigger opening in spaceAligning defence strategy and private capital for Canada’s responsive launch sector

The push follows two recent drivers. First, erratic U.S. space-policy decisions under former President Donald Trump have heightened Canadian interest in an independent capability. Second, defence officials cite the need to treat space as a “domain of power,” linking sovereign launch to national security and Arctic access. The discussion evoked the 1959 cancellation of the Avro Arrow as a historic missed opportunity that Canada should not repeat.

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• Canada Rocket Company – CEO Hugh Kolias, champion of a medium-lift gap (2 000–20 000 kg to LEO).

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• Reaction Dynamics – Founder/CTO Bachar Elzein, stresses end-to-end Canadian design and control.

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• NordSpace – Founder/CEO Rahul Goel, promotes “sovereign launch” as a national asset.

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• Maritime Launch Services – Recipient of a separate $200 million federal investment.

Aligning defence strategy and private capital for Canada’s responsive launch sector

• Defence – Brig. Gen. Chris Horner (3 Canadian Space Division) and DND’s IDEaS programme staff, notably Ahmad Khorchid.

Aligning defence strategy and private capital for Canada’s responsive launch sector

• Federal investment: Nearly C$225 million earmarked for sovereign launch, including C$8.3 million grants each to Canada Rocket Company, NordSpace, and Reaction Dynamics.

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• Maritime Launch Services: C$200 million 10-year commitment.

Aligning defence strategy and private capital for Canada’s responsive launch sector

• Legislative support: Bill C-28 (Canadian Space Launch Act) to streamline regulations.

Aligning defence strategy and private capital for Canada’s responsive launch sector

• IDEaS “Launch the North” contest: Phase 1 grants of C$8.3 million to the three startups; Phase 2 will fund advanced integration, testing, and demonstration, targeting operational launches as early as 2028.

Aligning defence strategy and private capital for Canada’s responsive launch sector

Government officials framed the funding as a step toward “sovereign launch” that secures economic growth and defence readiness. DND highlighted IDEaS as a mechanism to align public and private capital, offering feedback from defence experts to accelerate technology readiness. Brig. Gen. Horner emphasized that Canadian rockets would allow the nation to “shape that power” rather than depend on others.

Aligning defence strategy and private capital for Canada’s responsive launch sector

Industry participants acknowledged the technical and financial thinness of early-stage rocketry, noting that “building rockets is hard, otherwise more companies would be doing it.” Observers called for clearer procurement rules, guaranteed payload contracts, and safeguards against “brain drain” of skilled engineers.

Aligning defence strategy and private capital for Canada’s responsive launch sector

While the IDEaS roadmap cites a 2028 operational launch, no definitive contract or schedule has been disclosed, leaving the exact timeline uncertain. Details on how the C$225 million will be allocated across research, testing, and commercial services remain unspecified.

Aligning defence strategy and private capital for Canada’s responsive launch sector

• “We cannot import something, slap a flag on it, and call it Canadian.” — Bachar Elzein, Founder/CEO/CTO, Reaction Dynamics

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• “The market was sold,” — Bachar Elzein, Reaction Dynamics panelist

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• “What we like to say is it starts with sovereignty and then the world.” — Bachar Elzein, Reaction Dynamics

First Canada, then the world: nation’s rocket builders see a bigger opening in space

• “When we have built our rockets, and we are ready to go to space from our own soil, we have the places and the pieces to do that here in Canada,” — Brig. Gen. Chris Horner, Commander, 3 Canadian Space Division

Aligning defence strategy and private capital for Canada’s responsive launch sector

• “This is our moment to not repeat history,” — Hugh Kolias, CEO, Canada Rocket Company

First Canada, then the world: nation’s rocket builders see a bigger opening in space

NATO plans a hypersonic launch-vehicle test in Halifax (June), which will involve Canadian radar and regulatory partners. Phase 2 of IDEaS will move the three funded firms toward full-scale integration and flight demonstrations, aligning with the government’s goal of a domestic launch capability by the late 2020s.

Aligning defence strategy and private capital for Canada’s responsive launch sector