Economic analysis of establishing Andøya Spaceport
Oslo Economics has on behalf of the Norwegian Space Center analysed the economic effects of establishing Andøya Spaceport. Andøya Spaceport AS (ASP) was established in 2018 as a subsidiary of the Andøya Space Center and aims to build an infrastructure at Børvågen on Andøya that enables the launch of small satellites. Today, only Rocket Lab in New Zealand offers dedicated launches for small satellites worldwide. In Europe, both Sweden, the United Kingdom and Portugal have plans to establish launch bases for small satellites.
Our analysis indicates that the establishment of a base for launching satellites on Andøya has a net positive economic effect. However, there is considerable uncertainty related to the effects. The positive effects are largely dependent on ASP being able to establish agreements with international rocket manufacturers that are able to bring customers to ASP, and who see themselves benefiting from the use of Norwegian subcontractors.
The Government has now proposed a conditional commitment on grants and equity. This means that Andøya Spaceport still has to document that the project provides a return on equity equal to what a private investor would require, and that it is in accordance with the state aid regulations in the EEA agreement, before the state funding can be disbursed. They must also present a plan on how to safeguard the interests of the fishing industry.