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Blue Origin and Sierra Space Assess Future of Orbital Reef Space Station Amid Rocky Partnership

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The Future of Orbital Reef Space Station Hangs in the Balance for Blue Origin and Sierra Space

Partnership Challenges and Priorities

The partnership between Blue Origin, led by Jeff Bezos, and Sierra Space is facing uncertainties as the future of the Orbital Reef space station project is being evaluated. While initially announced as a joint venture, updates on the project have been scarce in the past year. Sources familiar with the matter suggest that discussions are ongoing, but both companies have shifted their focus to other projects with more significant current contracts, such as Blue Origin's Blue Moon lunar lander and Sierra Space's Dream Chaser spaceplane. As a result, it is increasingly likely that Blue Origin and Sierra Space may part ways, leaving the Orbital Reef project behind.

Background and Priorities

Blue Origin and Sierra Space unveiled the Orbital Reef project as a "mixed-use business park" in space, with plans to launch its first major components in 2027. The companies aimed to begin service around the time the International Space Station retires. While Blue Origin has a long-standing interest in developing habitable space stations, Sierra Space has been working on its LIFE (Large Integrated Flexible Environment) habitat concept for years.

Competing Projects and Shifting Priorities

Several companies, including Axiom, Voyager Space, Northrop Grumman, and Vast, are also working on building private space stations, creating a competitive landscape in the industry. According to sources familiar with Blue Origin and Sierra Space, Orbital Reef is not currently seen as a top priority for either company. Blue Origin's focus has shifted after winning a $3.4 billion NASA contract to build a crew lunar lander, leading to resource competition between its space station and lunar lander programs. Additionally, Blue Origin CEO Bob Smith's departure at the end of the year further adds to the need for new leadership to execute major projects. Similarly, Sierra Space is primarily focused on getting its reusable Dream Chaser spaceplane flying and recently secured $290 million in new funding.

Signs of Unraveling and Shifting Focus

Signs that the Orbital Reef project may be unraveling include the lack of updates on the project's development on the joint website created by Blue Origin and Sierra Space, as well as the absence of job openings related to Orbital Reef on both companies' careers websites. Sierra Space has also dropped references to Orbital Reef in its recent press releases, focusing solely on its own habitat work.

NASA's Perspective and Project Changes

From NASA's viewpoint, changes in the structure or involvement of different companies in the early stages of a project like Orbital Reef are not uncommon. For example, Northrop Grumman did not rejoin Blue Origin's team when the company bid for a crew lunar lander for the second time. Another space station project called Starlab also saw Airbus replacing Lockheed Martin as the core habitat's builder in the Commercial LEO Destinations (CLD) program.

Sierra's Continued Development and Testing

Sierra Space has remained committed to testing and developing its LIFE inflatable module, which plays a significant role in the Orbital Reef architecture. The company regularly provides updates on milestones achieved during habitat testing, including recent "burst" testing of a sub-scale prototype. Sierra Space has also announced plans to launch a "pathfinder" demonstration mission of its LIFE habitat in 2026. As discussions continue and decisions are made, the fate of the Orbital Reef project hangs in the balance. The evolving landscape of the space industry and the priorities of Blue Origin and Sierra Space will ultimately shape the future of this ambitious endeavor.

Implications of the Uncertain Future of Orbital Reef Space Station for New Businesses

Partnership Dynamics and Business Priorities

The partnership between Blue Origin and Sierra Space, initially formed to develop the Orbital Reef space station, is now under scrutiny. This situation serves as a cautionary tale for new businesses about the importance of clear communication, shared goals, and the ability to adapt to changing circumstances. The shifting focus of both companies to other projects with more significant contracts underscores the need for businesses to prioritize and manage resources effectively.

Competition and Market Positioning

The space industry is becoming increasingly competitive, with several companies, including Axiom, Voyager Space, Northrop Grumman, and Vast, working on building private space stations. This competitive landscape highlights the importance for new businesses to differentiate themselves and strategically position their offerings.

Leadership Changes and Project Execution

Leadership changes, such as the upcoming departure of Blue Origin CEO Bob Smith, can have significant impacts on a company's direction and project execution. For new businesses, this underscores the importance of strong leadership and succession planning. Additionally, securing funding, as Sierra Space did with its recent $290 million, is crucial for project development and growth.

Project Adaptability and Persistence

Signs of the Orbital Reef project unraveling, such as the lack of updates and job openings related to the project, highlight the need for businesses to adapt and pivot when necessary. Despite these challenges, Sierra Space's continued commitment to testing and developing its LIFE inflatable module exemplifies the persistence required to achieve business goals.

Industry Changes and Future Outlook

Changes in the structure or involvement of different companies in early project stages, as seen from NASA's viewpoint, are not uncommon. This suggests that new businesses should be prepared for potential changes and remain flexible in their strategies. As the fate of the Orbital Reef project hangs in the balance, the evolving landscape of the space industry and the strategic decisions of Blue Origin and Sierra Space will shape the future of this ambitious endeavor, offering valuable lessons for new businesses in the process.
Story First Published at: https://www.cnbc.com/2023/09/28/blue-origin-sierra-space-orbital-reef-space-station-in-limbo.html
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