Defence Department Signs $20 Million Launch Pad Deal as Space Launch Bill Remains at Second Reading

The Department of National Defence will pay Canadian rocket company NordSpace $20 million over 10 years for priority access to a launch pad in Newfoundland and Labrador, while a federal bill to regulate commercial launches remains at second reading in the House of Commons.

Defence Minister David McGuinty announced the agreement Wednesday at the SpaceBound conference, according to SpaceQ. BetaKit and The Logic also reported the deal.

What the money covers
The money covers the minimum cost of maintaining the launch pad and its systems at the Atlantic Spaceport Complex in St. Lawrence, on the province’s south coast, rather than individual launches, BetaKit reported. SpaceQ said each launch would be contracted separately.

The deal
NordSpace, based in Markham, Ont., is building the spaceport and aims for orbital launches by 2028, according to BetaKit. “A sovereign spacefaring Canada needs the ability to launch a payload into orbit on its own schedule,” NordSpace founder and chief executive Rahul Goel said.

The Logic reported that the announcement was part of a package of space measures, including a $4.7 million contract with Kepler Communications for laser based communications between satellites and a new space mission operator occupation in the Canadian Forces. It reported that National Defence signed a separate 10 year, $200 million agreement earlier this year with Maritime Launch Services in Nova Scotia. Transport Canada said in April that McGuinty announced $200 million in March for core infrastructure at a Canadian owned spaceport.

Other defence space spending
National Defence’s Launch the North challenge seeks a Canadian rocket that can reach orbit on 96 hours’ notice by 2028, SpaceQ reported. NordSpace was one of three companies conditionally approved in March, at $8.3 million each.

The bill
Transport Minister Steven MacKinnon introduced the Canadian Space Launch Act, Bill C28, on April 21, and second reading debate began April 28, according to a Transport Canada question period note dated May 14 and openparliament.ca. NordSpace’s suborbital Taiga rocket is awaiting regulatory approval before a new attempt, BetaKit reported.

Transport Canada grants launch approvals case by case under interim rules in place since 2023, SpaceQ reported. The note says the bill’s amendments would take effect on royal assent, after which Transport Canada would develop regulations with provinces, industry and international partners.

What the bill would do
The department says the bill would create a dedicated authorization framework for launches and reentries, a financial responsibility and liability framework, authority over land use and safety around launch sites, and clearer emergency powers for the minister. It cites a domestic space economy projected to reach $40 billion by 2040. The note says Canadian satellite companies and government agencies spent nearly $140 million on foreign launch services from 2019 to 2024.

Opposition questions
Conservative MP Dan Albas has said his party supports the goal but is concerned that the bill has no statutory duty to consult National Defence or the Canadian Security Intelligence Service before a licence is issued and does not define a national security clearance, The Hub reported. The NDP has questioned how much of the framework is left to regulations, according to The Hub.

The Hub reported the government called the bill for second reading on Oct. 5 and again Oct. 21, but those previews do not say whether debate took place. NordoVista has found no record of a vote or a referral to committee and could not open the bill’s page on the LEGISinfo tracker.