Japan’s Mitsubishi Heavy Industries is due to launch the Telstar 12 Vantage satellite in November for its first ever commercial customer. SatelliteFinance speaks to Ko Ogasawara, VP of MHI Launch Services, to find out how the group plans to aggressively ramp up the commercial side of its business.
Japan’s Mitsubishi Heavy Industries is due to launch the Telstar 12 Vantage satellite in November for its first ever commercial customer. SatelliteFinance speaks to Ko Ogasawara, VP of MHI Launch Services, to find out how the group plans to aggressively ramp up the commercial side of its business.
Jason Rainbow: MHI was recently picked as prime contractor to upgrade JAXA’s existing flagship rockets: the medium-lift H-IIA and heavy-lift H-IIB. How will its new rocket family help MHI’s aim to increase the commercial side of its launch business?
Ko Ogasawara: The name of this new flagship rocket is H3 and the first flight will be in 2020, and then we will start commercial launches that year or later. After the transition phase from H-IIA/B to H3, we plan to manufacture eight vehicles per year. Moreover, if we get enough orders from around the world then we can increase the production capability to up to 10 a year.
We do about three to four government launches a year, so if we go to 10 then we could potentially do six commercial launches.
JR: The plan is to carry out more commercial than government missions then?
KO: Yes, but, at this point in time, our production capability for H-IIA/B is limited and we have a large backlog of government missions to get through. Therefore, there is limited room for commercial missions in the near term. However, we plan to make H3 a much more customer-oriented vehicle, and we expect more orders from the commercial markets.
JR: How do you see this balance changing later down the line?
KO: I think the government launches will remain stable at about three to four a year, so we should continue to increase the commercial missions even further.
JR: How will your new H3 rocket family help you win more commercial business?
KO: There are three points: One is price, which we have a very strong requirement from our government to lower it compared with the current H-IIA. Our goal is to compete with and be much more attractive than our bigger competitors.
Number two is that H3 will offer a much more benign mechanical environment, including lower separation shock and vibration, during the launch phase of the satellite.
And number three is our quick response for launches. We can now launch a mission in 18 to 24 months after securing a contract, but we plan to speed up the process to be able to do it in 12 months.
JR: Will this mean building more factories?
KO: No, we will enlarge them. We already have some factories in Japan because we manufacture the vehicles themselves, the engines, and also the ground segment.
JR: How many employees does MHI have in its space business, and are you hiring more as you ramp up these activities?
KO: We have about 500 to 900 people depending upon how you count it, and we have already hired staff to help build our new rocket because the development schedule is so tight at only six or seven years. Our H-II launch vehicle was developed about 20 years ago – I was a designer at the time – and I think that process took 10 or even more years.
JR: What new capabilities do you have in mind for H3?
KO: We have to enlarge our capability from the smaller size to the larger size. Currently we can launch a GTO mass of up to eight metric tons with H-IIB. H-IIA, which is the main vehicle targeting commercial launches, can launch between four to six metric tons.
With H3 we will widen the range with three types of configuration that can do between 2.5 metric tons and up to seven metric tons.
JR: Could MHI expand into the growing market for launching even smaller satellites?
KO: I think we should be able to prepare smallsat dispensers for H3.
JR: What about using reusable rockets?
KO: I would love to do that, but we do not have a physical project at this time, just research.
JR: Outside Japan, do you see demand for MHI’s launches coming more from emerging space nations or established satellite operators?
KO: As you know we got a contract from the UAE, which is one of the emerging space nations and is very eager to open the door to space. I think this is a trend that will continue, but the established commercial market will be our main market and is very attractive to us.
JR: Isn’t there a danger of the launch market becoming too crowded?
KO: Yes, I think so. But mission success is key, as well as what I mentioned previously, to compete in this market. We have completed 27 consecutive successful missions at this point in time. Insurers pay very good attention to us with very low rates. They’re telling us to manufacture more vehicles to sell because we’re so reliable.
JR: Who are the insurers you usually work with?
KO: Tokio Marine & Nichido Fire Insurance Co. Ltd. (TMNF) is our counter partner. TMNF is one of the major members of the international space insurance community and has a very good connection with underwriters all over the world.
JR: Does MHI have access to export credit agency support and will you use this to win more commercial orders?
Yes, we have two ECAs. One is JBIC (Japan Bank For International Cooperation) for direct loans and the other is NEXI (Nippon Export and Investment Insurance) for insurance. As of today, we haven’t had any programme with ECA financing support. However, JBIC and NEXI support various industries, including commercial aircraft and they are very supportive of our launch services too. Therefore, I think it will help us win more commercial business in the very near future.
JR: What else are you looking forward to from Japan’s space industry in 10 or so years?
KO: For myself, when I was a young boy I always wanted to explore another planet. We have a space exploration programme in Japan and I’d love to get involved with that much more.
