Tampilkan postingan dengan label Space X. Tampilkan semua postingan
Tampilkan postingan dengan label Space X. Tampilkan semua postingan

Jumat, 07 September 2012

Would a Reusable Falcon Hurt SpaceX?

What happens if SpaceX is successful at achieving its Falcon reusability goals.  Here is the video of SpaceX’s plans to recover and reuse the majority of its Falcon launch system.


Let me make some assumptions about a Reusable Falcon (R-Falcon) to make my point that such a system may pose challenges for SpaceX.

On the surface, an R-Falcon would be great.  If my assumptions below are accurate, only $16M per flight, a flight every 30 days, only two thousand dollars per KG.  From a consumer perspective this would be great!  SpaceX is adding reusability to the large rockets they already have.  And they will probably be successful at it.  They do seem to achieve what they put their mind to, however, could there be an easier road to reusability?  Let’s explore the possibility.  First what could a large reusable system like SpaceX’s look like (dollars values in millions)?

  
I am still amazed we can’t build Saturn V’s today.  We built them before.  We went to the moon in them for goodness sake!  We knew how to build them…why don’t we know now?  Two major reasons:
  1. We don’t have the tooling/plans – long since destroyed or lost
  2. We don’t have the knowledge – the NASA/contractor engineers have retired/passed away
 Surely such a reusable system like the R-Falcon could avoid these Saturn-V pitfalls…right?  If you look at the table above you see I estimated SpaceX builds eight initial R-Falcons.  This high number addresses the unknowns about number of flights per R-Falcons.  Will it really be 10 flights per vehicle as I estimate?  And how long will it take technicians to refurbish and integrate the next payload? 6 weeks?  8 weeks?  With flights every month and 6-8 week refurbish and integration windows, multiple R-Falcons will be needed.

So here is the problem.

After the initial push to develop the R-Falcon fleet, at the usage rates outlined in the table, you would NOT NEED TO BUILD another R-Falcon for 6.5 years!

So SpaceX could avoid throwing away their tooling (unlike the Saturn V), but could they keep a knowledgeable team around ready to build the next R-Falcon 6.5 years after the first fleet was completed?

And even if you believe eight R-Falcons in the initial fleet is too many and want to reduce the fleet size, demand rates of one per month means SpaceX would only need to make approximately one R-Falcon per year to keep up with demand.  Not exactly mass production – 1 vehicle per year.  Can you keep the production team “sharp” on 1 vehicle per year?

How can it be, as a consumer, I love the R-Falcon (yay $2k per KG), but as a business, could the R-Falcon be a bad way to prove a reusable launch vehicle?  Could the R-Falcon launch too much payload and launch too infrequently?

Let’s talk about an alternate business approach that could address some of these challenges.  I said above that my hypothetical R-Falcon has two problems:
  •  Launching too much payload
  • Launching too infrequently
How could a new hypothetical company do reusable launch better?  What if you launch less mass but launch more often?  So let’s make up a hypothetical launch system – the “Kinglet.”  Since this is a business blog, let’s not get bogged down into the technical details except that instead of launching 7,000KG per flight, the Kinglet will launch 100KG.  And instead of paying the R-Falcon’s $5M for range access per flight, the Kinglet pays $200K per flight for its range or range-like services (airport, spaceport, other?).  Here is the table for such a system (dollars values in millions).


The Kinglet is a smaller launch system but aims for a higher flight rate, targeting weekly flights instead the R-Falcon’s monthly flight rate.  As a potential customer, I do not like the 10x higher price I pay to use Kinglet ($20K per KG vice the Falcon’s $2K).  But flying weekly may be attractive to some customers.  Overall though, this appears to be bad for customers (most customers could wait a month to fly).  But from a business perspective, all things being equal, a small reusable launch system like Kinglet has a much higher probability of success because it starts small.

Where the Falcon struggled to keep its production line open with only one new vehicle per year, the Kinglet will need to produce five systems per year to keep up with demand.  Now five launch vehicles per year is still not mass production, but those volumes will, not only keep the production team sharp, but provide five times the opportunities to roll in product and production improvements into the newer vehicles than would be possible on the R-Falcon production line.

Could a smaller reusable system avoid R-Falcon's hidden pitfalls?  Maybe.

So the last question to ask is, what needs to be launched at least weekly with a mass of under 100KG? 

Here is the excel file with tables from this post if you want to change the assumptions.

Senin, 17 Oktober 2011

Risk Pricing for the Reusable Falcon 9

In my last post I explored how the SpaceX's reusable Falcon 9 (rF9) could threaten those companies offering suborbital launch services.  

Discussion has focused on the risks preventing the rF9 from reaching the optimistic breakeven price point of $130 per kg (discussed in my last post).  Here are a few of the risk categories you have raised:

  • Increased variable costs: Elon may claim only $200K of propellant per flight, but the variable costs of an rF9 flight will surely be higher
  • Reduced number of flights: When you factor in the complexities of reusing a launch vehicle and the potential for a crash or loss of vehicle
  • Reduced payload capacity: Adding reusability will increase the mass of non-payload components – reducing the payload mass

What rF9 breakeven price points might we expect if we take these concerns into account?  In the table below, I explore these risks and their impact on breakeven price per flight and breakeven price per kg.  


In the second column are the breakeven prices today for an expendable Falcon 9.  This is the upper end of cost.  Weight any of these risks to the point you get price points beyond $5K per KG and customers will prefer the current Falcon 9 over the reusable version.  The third column shows the optimistic assumptions from my last post.  Columns four through six:

  • Increase variable cost per mission from $200K to $2M
  • Reduce reusability from 47 missions per vehicle down to only 10 missions per launch vehicle
  • Reduce payload capacity by 50% from 10,450KG to 5,225KG

These risk values give us a range we can talk about.  Even variable costs of $2M per flight, only 10 flights per vehicle, and half of the payload mass consumed with reusability hardware, SpaceX should be able to reach breakeven price points of about $1500 per KG and $7.5M per flight. 

And the great thing about risks…they get retired.  Be as pessimistic as you want to be about the capabilities of the initial versions of the rF9.  Variable costs will drop over time.  Flight rates per vehicle will rise, and payload mass will creep back up.  The key has been (and will always be) flight rates.  I wouldn't be surprised to see SpaceX subsidize their first generation rF9, offering first generation customers prices SpaceX won’t be able to satisfy profitability until the second generation rF9 – all in the name of increased flight rates.

How optimistic or pessimistic are you about rF9 capabilities?  Here is an interactive spreadsheet for you to explore your own risks and their effects on breakeven prices.    

Sabtu, 01 Oktober 2011

Will the Reusable Falcon 9 Kill the Suborbital Launch Industry?

With SpaceX’s announcement this week that the company would not only develop a reusable first stage for its Falcon 9 family of rockets but would make a completely reusable rocket system (I will use Clark Lindsey’s nomenclature: "rF9" for reusable Falcon 9), I have been wondering about the future of the young NewSpace companies developing reusable suborbital rockets.  Will companies like Masten, Armadillo and to a lesser extent XCOR and Virgin Galactic, survive this incursion from a well-funded NewSpace Cousin?


(the youtube video via Clark Lindsey's youtube channel.)  
SpaceX has announced the company is developing the “Grasshopper,” a 100 foot-tall suborbital Falcon 9 first stage that SpaceX’s cadre of young, talented engineers will use to test this initial piece of the rF9.  SpaceX has NOT announced any intention to commercialize the Grasshopper.  But if Masten, XCOR, and Armadillo continue to delay bringing a product to market that can reach 100KM, and SpaceX continues to develop products in its typical rapid fashion, might customers ask to buy payload space on an upcoming Grasshopper test?  



Or would SpaceX be willing to sell Grasshoppers to operators who then provide a suborbital launch service to users using the Grasshopper all before Masten has reached 100KM?  Could the unmanned Grasshopper be modified to carry passengers and compete with Virgin and XCOR?  If an operator came with funding, wouldn’t SpaceX take their money to make the modifications to "manrate" Grasshopper?

But the big money is the orbital market.  Most of the suborbital companies have expressed interest in using their suborbital experience and even their suborbital vehicles to expand current offerings to include an orbital system.  XCOR has published this image of an orbital capability.  



Virgin Galactic even took investment money from the Middle East to jump start their orbital program.  Could an rF9 meet all market demand for both suborbital and ultimately orbital launches as well?  And if they do, are the current suborbital companies doomed? 

It all comes down to money.

How cheaply could SpaceX really launch their new rF9?  We don’t know.  SpaceX does not even know yet.  But we can make some interesting estimates.   The heart of these projected orbital price reductions stems from reusing the rF9 like Southwest reuses its 747’s (which can fly commercially for 30 years with proper maintenance).  How many reuses is SpaceX planning on? 

At this point, the best data I have is a nugget SpaceX's CEO, Elon Musk, said this last week that he is targeting $500K trips to Mars as a market for his reusable craft.  

Let’s make some assumptions so we can approximate SpaceX’s reusability assumptions:
  1. A price for a Dragon/Falcon 9 trip to Mars will be equal to the price SpaceX is currently charging NASA for ISS visits ($130M per trip) - optimistic assumption
  2. 5 paying passengers per Mars Trip - optimistic assumption
  3. 10% profit per launch
  4. All maintenance and between-flight costs are included in the launch price - optimistic assumption

SpaceX breaks even after 47 flights (but that is a lot of assumptions).  here is a table to help visualize the math:



 Assuming a 47-flight amortization, what could be SpaceX’s breakeven price per KG to LEO?  Or to say it another way, how low would the suborbital company’s prices have to be to beat SpaceX?  

Again, let’s make some assumptions:
  1. A price for an rF9 to LEO is the same as current LEO Falcon 9
  2. Falcon 9 payload to LEO is unchanged
  3. 10% profit per launch
  4. All maintenance and between flight costs are included in the launch price.
  5. Propellant Cost per Launch = $200K
  6. rF9 breaks even after 47 flights

Based on these assumptions, SpaceX's breakeven Price to LEO for rF9 is $130 per KG or ~$1.4M per flight.  Again, here is a table to summarize how I came to this conclusion.  At the end of this post is a link to an interactive spreadsheet where you can modify these assumptions to create your own analysis.



These SpaceX prices are surely the most optimistic for the near term:
  1. What if the rF9 doesn’t get 47 flights per vehicle?
  2. What if between-flight maintenance costs for the rF9 are significant?
  3. What if payload capacity has to be significantly reduced to accommodate rF9’s reusability elements?
  4. What if near term launch demand is not high enough to fly as often as they need?
Even with the identified risks, this analysis would indicate:
  • Yes, rF9 could compete against suborbital companies for suborbital market share (especially if SpaceX sells the Grasshoppers to entrepreneur operators)
  • Yes, rF9 could compete against suborbital companies for orbital market share through extraordinarily low prices


So how can XCOR and Masten compete?  

I continue to be bullish regarding the utility of Nanosat-class launch vehicles.  When suborbital companies start offering orbital services (a second generation service), their initial orbital offerings would probably be within this Nanosat class - broadly speaking, payload space significantly under 100kg.  Is there still a market for suborbital companies to offer this type of orbital service?  Even if SpaceX may be able to now match (or beat) them on price?  

Yes.  Here is why:

Sometimes smaller is better.  The smaller vehicles these suborbital companies will eventually offer on orbit should:
  • Be easier to "fly full"– to get the $130/KG price on an rF9, you have to wait for the manifest to fill.  Not so with a smaller vehicle.  XCOR was talking about a payload of 12-20KG initially.
  • Be easier (and cost less) to maintain.
  • Be launched with less integration or preparation – this advantage is the BIG one.  XCOR talks about multiple flights on the same day, taking off and landing from existing airports.  Even if the rF9 could launch that often, it will be some time before regulations allow SpaceX to fly that often - especially if they are still flying from the Cape or Vandenberg where ops tempo is measured in "launches per month" not "launches per day".

Nanosat launchers are the future, but only if their ops tempo is fast enough to justify paying a premium for preferential launch windows.  

This advantage of the small won’t last forever.  SpaceX will keep improving its initial RLV offerings.  Spaceport operations will grow to allow for more airline-like ops tempos.  So Nanosat launch operators (today’s suborbital companies) will have to keep improving too.

But there is a market for Nanosats and it hinges now on ops tempo.  There is hope.

The bigger worry…

…is in the near term.  I mentioned earlier, I doubt SpaceX will pursue commercializing their Grasshopper suborbital vehicle.  But they may be open to selling this suborbital vehicle for others to operate.  Such a suborbital operator flying the Grasshopper would have tremendous suborbital market advantages and could be a major competitor to those suborbital companies focusing on suborbital research (Masten, Armadillo, etc.).

Suborbital companies should be worried, but not panicking.  If the reusable Falcon 9 hastens the development of viable Nanosat launchers, the industry will be doubly blessed – low launch costs from the rF9 and high ops tempo from Nanosat launchers.

Here is the interactive spreadsheet so you can build your own rF9 assumptions.

Selasa, 31 Mei 2011

Business Case for a CubeSat-based Earth Imaging Constellation

The use of Commercial Earth Imaging Satellites is growing. Individuals, corporations and governments are finding varied and unique applications for images of our planet.

Futron estimates the market for commercial earth imaging topped $1B last year (2010).


Uses of Earth Imaging:
  • Disaster Relief – think of all of the satellite images you saw after the Japan Earthquake (including the nuclear reactors)
  • Disaster avoidance - George Clooney (among others) paying to patrol boarder of north and south Sudan using Earth imaging satellites.
  • Helped with hunting down Osama bin Laden (but were any these images from commercial satellites?)
  • Food Commodities tracking – allowing traders to ask and answer questions like, “how do the wheat crops in Kansas look after last night’s hail storm?”
  • Remote Infrastructure observation – the oil industry uses it to keep track of their assets in remote locations
  • Even the US Government is turning to Commercial providers. Last year, the U.S. National Geospatial-Intelligence Agency (NGA) awarded separate 10-year, $3.5 Billion contracts to image providers DigitalGlobe and GeoEye (these contracts are now under review).

The Commercial earth observation markets:
  1. Market #1: High-Resolution images (1.5 meters per pixel). But the cost of each satellite means providers have a limited number of satellites (usually 1-2) on orbit.
  2. Market #2: Med-Resolution images (5-7 meters per pixel) – lower quality images, but providers tend to have more satellites in orbit and may offer more spectral bands to choose from for each image and offer more frequent photo opportunities due to the higher number of satellites within the constellation.




















In a recent Nov 2010 paper, “6U CubeSat design for Earth observation with 6.5m GSD, five spectral bands and 14Mbps downlink,” author, Dr. Steven Tsitas outlines how a constellation of 6U CubeSats could serve Market #2 (frequent med-res images) competitively. (Sorry, I think you will have to buy the paper. If a reader finds a free version of the paper online, let me know and I will change the link). I hope to post an interview with Steven Tsitas soon.

But why even consider a CubeSat at all for such a mission? Here are just a few of the advantageous of using CubeSats:
  • High amount of innovation in the field – from NASA, universities, and private industry
  • Low ITAR restrictions (CubeSat programs are thriving in many nations)
  • Low mass of each satellite
  • Reduced launch cost per satellite
  • Reduced cost to replace/upgrade constellation as satellites age, breakdown, or new technology becomes available

Rapid Eye, a German company, is the current leader serving Market #2. Below I will provide some details about Rapid Eye and how a CubeSat constellation might be able to compete with Rapid Eye.  First, a little education about Rapid Eye.

Rapid Eye Details:
  • Five identical sun-synchronous Earth observation satellites
  • Five spectral bands
  • Launched in August 2008
  • Satellites built by Surrey UK
  • 650KM circular orbit
  • Captures 4mil km squared of earth’s surface every day
  • Once an order is placed for an image, can take a photo of any location on earth (between 75 degrees N and 75 degrees S) within 24 hours.
  • Offers not only images, but offers services for the analysis of images – especially good at providing comparative analysis of images taken over a period of time

Rapid Eye, the Numbers:
  • Customer price for images: $1.33 per square KM (must purchase 5,000 KM at a time (at current Euro conversation rates that is equal to $6650 per very large image)
  • Satellite Constellation construction: $35M 
  • Expected 2009 Revenue: $29.5M (have not confirmed this number)
  • Total Capital needed to break even: $224M

Assumptions about Rapid Eye’s business:
  • Assumed Rapid Eye is now profitable
  • Assumed the cost of the single Dnepr launch necessary to lift the five Rapid Eye sats: $15M
  • Assumed a $50M infrastructure Hardware purchase (ground station and other startup infrastructure)
  • Assumed a five year startup at a cost of ~$25M per year in operating (non-HW, non-infrastructure costs)













So what if we could launch a constellation of ten cubesats that could perform a very similar function as Rapid Eye’s current constellation of five small sats? Are their savings if we could? For this post, I will use Steven Tsitas’s conclusions that, yes, such a cubesat constellation would be technically possible.

I will build my business case, not from a technology discussion, but by attempting to answer the business question of - how much could an business save by using Cubesats instead of small sats?

CubeSat Venture Assumptions:
  • Cost per 6U CubeSat: $400,000
  • Number of CubeSats in constellation: 10
  • 6U CubeSat mass: 8 lbs each
  • Falcon 1 launch: $9.8M
  • SpaceX willing to prorate launch cost based on mass

If we assume the CubeSat venture would operate using the same Hardware and Operating Costs as the Rapid Eye venture, then the CubeSat savings are limited to the cost of the satellites themselves and the cost to launch them into orbit:
  • Rapid Eye’s satellite and launch costs: 23% of breakeven costs
  • CubeSat venture’s satellite and launch costs: 3% of breakeven costs
This would mean a CubeSat venture competing with Rapid Eye could theoretically lower image prices by twenty percentage points over competitors (all other things being equal). This by itself may close the business case for some CubeSat constellation investors.











But perhaps competing toe-to-toe with Rapid Eye is the wrong business model. As a general rule, it is hard to out Wal-Mart, Wal-Mart. What-if the CubeSat earth imaging venture could, instead, become the low-price, no frills, earth imaging provider?

In the earlier example, the CubeSat advantage was limited to lower satellite costs and cheaper rides to orbit on SpaceX launch vehicles. But what-if the venture could also save money on ground costs: Hardware/ground stations and operating expenses?

CubeSats, the low-cost leader in earth imaging Assumptions:
  • Continue with assumptions regarding low satellite costs
  • Continue with assumptions regarding low launch costs
  • Lower ground Hardware and Infrastructure costs from $50M to $25M
  • Lower operating costs from $25M to $10M per year.









Here is a quick cost comparison between the options:


















Next Questions (beyond the scope of this post):
  • Market price elasticity: How price sensitive is the earth imaging market? How would cutting Rapid Eye’s price by 20-60% affect demand for a CubeSat-based image product?
  • What realistic cost reduction methods are possible in ground hardware and personnel?
  • Admittedly, my Rapid Eye information was limited to publicly available data, a more serious effort should be conducted to understand the competitor’s cost structures and current profit forecasts
  • What are the cost implications from using a CubeSat-based system? Where are system costs reduced? Where are system costs increased?
  • Admittedly, images from a CubeSat are of a lower quality than the best in orbit (5-7 meters per pixel compared to 1.5 meters per pixel from the industry leaders of market #1).  How sensitive is the market to image quality?  And what can be done to increase the quality of an image taken on a 6U CubeSat?

Rabu, 06 April 2011

Falcon Heavy Impact on NewSpace

With the announcement from SpaceX yesterday about the Falcon Heavy, I went back over the recent missions I had been analyzing here at Space Business Blog to determine if any of them would benefit directly from the Falcon Heavy’s superior performance and reduced per pound launch cost.

The Answer: No. Well, mostly no.

Let me explain. Most of the innovative missions I had been considering were near term missions that could be performed on a single launch without the added capability of the Falcon Heavy.

  • CubeSat “Observers” of LEO/GEO assets – too small, mission may benefit from cheaper secondary payload prices
  • A NEO prospector mission – too small, mission may benefit from cheaper secondary payload prices
  • Nanosat Launchers – if anything, as launchers get larger, the need for a very small/responsive alternative grows, not decreases
  • LEO/GEO/L1 tug – a Falcon Heavy launch capability may actually harpoon this whole idea of a transfer tug (at least in the near term). Probably worth a new post on how the Falcon Heavy illuminates/reduces the value for such a capability
  • Refueling of Iridium’s constellation - too small, mission may benefit from cheaper secondary payload prices

But here are a few humble thoughts on why a Falcon Heavy changes the game:
  • Further NewSpace validation: Still a lot of doubt in congress that a commercial company can do rocket science – one more answer to these critics. New Space firms benefit from the validation that SpaceX creates.
  • Cheaper Secondary Payloads: With 53 metric tons to LEO available for each mission, smaller payloads could be combined to take advantage of all of that capability. This would allow more users to benefit from the $1000/lb price point, not just the big payloads.
  • Cheaper Falcon 1 and 9 missions: The Falcon family of launchers use the Merlin engine. Falcon 1, Falcon 9, and the Falcon Heavy (which could be called Falcon 27 since it uses 27 Merlins for each mission). In the announcement yesterday, Elon eluded to economies of scale coming from SpaceX making so many of these Merlin engines - 100’s per year. If the Falcon Heavy flies frequently, SpaceX will get even more experience about making many, many, many Merlin engines. The more Merlins you make, the more ways you find to make them cheaper. Yay economies of scale! The hope is that these savings result in lower prices for Falcon 1 and 9 over the long-term.
  • New mission potential: And now the obvious benefits – you can do more with any mission (more mass lifted at a lower cost). Think of the missions you can do with the raw ingredients being developed. Humans to NEOs, L1, Moon flybys, Venus/Mars flybys, and science missions to Mars and back – limited new hardware needed. The reality that a rich private citizen will soon be able to leave LEO for some impressive destinations has not been grasped by the population at large and will surprise many when such a mission is actually launched:
    • Falcon Heavy
    • Bigelow Modules
    • Dragon
    • CST-100
    • Even the Orion, and ISS
  • Commercial beats contracting: ULA could have built the rocket that SpaceX is building – they have a lot of very smart engineers. But they won’t build it (IMHO). They will wait for a contract to build one – which won’t come. Yes, they will spend their own small R&D budgets to enhance their current offerings. But they won’t spend hundreds of millions to develop a vehicle independently. And because of this, the only reason ULA will be offering launch services at all in ten years will be:
    • SpaceX can’t keep up with demand or
    • SpaceX has an accident or
    • The US govt insists on multiple launch providers to ensure access (funny they lacked that once ULA was formed) or
    • ULA’s political clout keeps them in the game – even if overpriced
    • ULA changes from a contractor to acting more like a commercial provider (the hardest switch to make)

**UPDATE:
Next Big Future offers this great cost comparison between the EELV launch costs of ULA and SpaceX:













Even if you DON'T have $80M+, the Falcon Heavy announcement changes how the whole world plans their space missions - even New Space.


Minggu, 26 Desember 2010

LEO-to-GEO Tug Part 2: Bigger than a Delta-IV Heavy

3,000kg DirecTV 12 Sat
In my last post, I showed the potential of using SpaceX’s Falcon 9 to launch a comsat to LEO and use a reusable LEO-to-GEO transfer tug to move the satellite from low earth orbit to GEO. I also described the largest satellite we can currently put into GEO in a single launch would be a 6,276kg satellite launched on a Delta-IV Heavy for $200M.

But how large of a GEO satellite would be possible using the Falcon 9/Transfer Tug architecture? And how expensive would that satellite be to launch?

Such a Falcon/tug system could launch a 10,000 kg satellite (an increase of ~59% over the current maximum comsat size) into GEO for $171-235M. The price/KG savings is significant ranging from 26-46% over the Delta-IV Heavy. In addition to cost/KG savings, no other commercial launcher can lift 10,000kg to GEO.


Here are my Assumptions:

  • Tug is launched on Falcon 9 with a dry mass of 3,000kg.
  • Tug is co-manifested on a Falcon 9. Launch cost $20M.
  • Tug Development paid for under contract and not a part of this analysis.
  • Tug Manufacturing Costs: $50M
  • Tug refuels itself as needed in LEO from additional Falcon 9 launches (10,000 kg of prop for $50M: $5,000 per kg).
  • Tug lasts five years with amortization factored into price.
  • Tug breakeven price listed in this analysis.
  • Two missions per year assumed (8% Market Share).
  • Operating Cost per year: $10M.
  • LEO to GEO: 4200 m/s of delta-v required.
  • GEO to LEO (with aerobraking): 1500 m/s of delta-v required.
  • Use aerobraking from GEO to LEO.
  • Satellite launched to LEO on a Falcon 9.

LOX/Kerosene Tug – 10,000kg to GEO details:







































LOX/Hydrogen Tug 10,000kg to GEO Details:






































Click here to play with the interactive spreadsheets.

In Part 3 of this series, I will discuss if a Falcon/Tug system could be used to take a Bigelow Sundancer Module to EML1.