Federal, provincial, and private investments strengthen Atlantic Canada’s role in a global space economy expected to reach $2 trillion by 2040
August 27, 2026 · St. Lawrence, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)
Access to space is becoming increasingly important to Canada’s security, sovereignty, and economic future. As countries around the world invest in their own launch capabilities, Canada is building the capacity to launch from Canadian soil and compete in the rapidly growing global race to space. Atlantic Canada is emerging as a key part of that effort.
Today, the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency, announced federal support for a $10 million investment to advance NordSpace’s Atlantic Spaceport Complex (ASX) in St. Lawrence, Newfoundland and Labrador. ASX is expected to host Canada's first commercial space launch vehicles and help secure Canada's sovereign access to space.
The Government of Canada is investing $1 million in the project, building on the $8.3 million in federal support announced for NordSpace earlier this year. The Government of Newfoundland and Labrador is contributing $4 million, while NordSpace is investing $5 million of its own capital, bringing the total investment announced today to $10 million.
Together, this investment will help ASX:
generate high-skilled jobs in rural Newfoundland and Labrador;
create new opportunities for Canadian businesses and grow space and advanced-manufacturing supply chains; and,
advance Canada’s commercial space-launch capacity and ability to compete in the rapdily growing global space race.
With major space-launch projects advancing in Newfoundland and Labrador and Nova Scotia, Atlantic Canada is increasingly becoming a destination for investment in Canada’s growing commercial space sector. These investments are helping Canada build greater control over its access to space, attract private investment from around the world, create highly skilled jobs, and ensure Canadian businesses can compete in an industry expected to reach $2 trillion by 2040.
Quotes
“Countries around the world are moving quickly to build their own space capabilities, and Canada cannot afford to be left behind. Space is becoming more important to our economy, our security and our sovereignty. By investing in NordSpace, we are helping build Canadian launch capacity, attract private investment to Newfoundland and Labrador and create highly skilled jobs in a global industry expected to reach $2 trillion by 2040.”
The Honourable Sean Fraser, P.C., K.C., Member of Parliament for Central Nova, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency
“Newfoundland and Labrador is geographically positioned to play a strategic role in Canada’s defence industrial strategy, including the need for a sovereign space launch capability. Through this investment, we are supporting a project that will create high-skilled jobs, attract private-sector investment, and open new opportunities for businesses and suppliers throughout our province. The Atlantic Spaceport Complex will help diversify our economy and strengthen the province’s presence in a rapidly growing global industry.”
The Honourable Lin Paddock, Minister of Jobs, Growth and Rural Development
“This investment in the Atlantic Spaceport Complex is a major moment for Canada. It is about more than building a spaceport; it is about building a future where a sovereign Canada leads in space exploration and innovation, with critical national infrastructure to launch Canadian vehicles, from Canadian soil, carrying Canadian payloads. NordSpace is building Newfoundland and Labrador into Canada's gateway to space, launching satellites on Canada's own terms to support farmers, predict wildfires, connect remote communities, and monitor wildlife across our great nation. This investment will create new economic opportunities while bolstering our national defence. We are grateful for this support from the Atlantic Canada Opportunities Agency and the Government of Newfoundland and Labrador.”
Rahul Goel, Founder and CEO, NordSpace Corporation
Quick facts
In addition to today’s announcement, the Department of National Defence conditionally approved $8.3 million over three years to NordSpace Corporation (NordSpace), one of three Canadian companies selected for funding through its Innovation for Defence Excellence and Security (IDEaS) Launch of the North Challenge, earlier this year. This initiative is designed to accelerate Canadian space launch-related innovation and to strengthen the foundations needed for future sovereign launch capability.
Founded in 2022, NordSpace is a Canadian aerospace company developing end-to-end space mission services, including launch vehicles, satellite systems and spaceport infrastructure. The company is building Canada’s first orbital-class launch vehicle, Tundra, along with advanced space technologies designed to support commercial, scientific and defence-related missions.
The Atlantic Spaceport Complex (ASX) in St. Lawrence, NL represents critical infrastructure that will support new Canadian space capabilities that will benefit key sectors, including fisheries/oceans, agriculture, forestry, climate change monitoring, remote broadband connectivity, national security, and public safety.
NordSpace aims to create 30 high-skilled jobs in rural Newfoundland and Labrador by 2028, with the potential for more than 200 jobs by 2035. The project is also expected to generate employment opportunities in construction, transportation, professional services and tourism.
Canada’s Defence Industrial Strategy identifies space as one of the country’s 10 Key Sovereign Capabilities, with space launch recognized as a priority area.
Also earlier this year, the Government of Canada announced a $200-million investment supporting Spaceport Nova Scotia, further advancing Canada’s sovereign space-launch capacity and Atlantic Canada’s growing role in the sector.
The funding announced today is provided through the Atlantic Canada Opportunities Agency’s (ACOA) Regional Economic Growth through Innovation (REGI) program.
Noah Note: A good win for NordSpace as we advance through Launch the North's light-launch phase. The comoany this week also showed off the first completed look at the Hadfield-150 engine that will power the future Tundra-series of Rockets, so it's a big week for NordSpace.
Rarely has a government put this much backing and effort; not since the 60s and 70s have we seen such a massive scale of investment and support. Of course, the Canadian Space Industry has been marked as one of the key high-end industries that the Federal government plans to invest in both commercially and as part of the Defence Industrial Strategy.
Canada has always punched above its weight here. It was Canada that put the first domestic communications satellite into space with Anik-1. In fact, the Anik series would accomplish many firsts, such as being the world's first dual-band communications satellite with Anik-B. Canada was the third country to send a domestic satellite into space with Alouette-I.
We have been a player in space from the start. We have been actively involved in many of humanity’s monumental moments among the stars. Yet, we have allowed ourselves to slip at a time when space is becoming more contested, and space-based assets are becoming more valuable.
Our adversaries, such as Russia and China, now have their own ASAT capabilities—sophisticated systems able to target large portions of our and our allies’ constellations. These capabilities, from ground-based interceptors and laser systems to space-based offensive platforms, will only get better and increase in scale as the years go on.
That’s why having a domestic capability in space is so critical. We already see allies, such as the United States, struggling to keep up with demand for both government and commercial launches. Many others are in similar situations. We do not have the collective launch capability to support each other.
That means Canada—the one G7 country without a domestic launch capability—would be the first to be squeezed out. There wouldn’t be much choice, as allies will also need to deal with increasing demand for space-based assets combined with replacing inevitable losses.
The role of space is growing, and new concepts are rapidly being thought up and developed at speeds we haven’t seen in decades. This is a trend that everyone is experiencing, and one we need to act fast to stay on top of.
From pen to orbit, Canada needs the ability to design, develop, build, and launch various classes of satellites into orbit across LEO, MEO, and GEO. There is no way around this. There is no debate in my eyes. You either have it, or you risk losing your space-based capabilities in conflict—capabilities vital for the modern battlespace.
It does require those extra supports. It requires setting the foundation for these kinds of extreme-risk industries to form. Our own risk-averse nature as Canadians comes up in a lot of things. It’s a generational issue that won’t easily be fixed by any one person or group, certainly not in a single generation.
That also means we need the proper plan in place to turn Canada into an international partner in the space-launch sector. You need the backing and regulations in place to foster launches from Canada.
You do need to start somewhere, and this feels like one of those industries where you have to take that risk and struggle—where you have to take that leap simply because of how critically vital it is to our national security. You can’t afford not to have these things available, and no matter the urgency, they take a long time to develop.
So, to have a clear pathway in place to translate this into permanent capabilities, to have proper follow-up, good follow-up in my book, to go beyond Small-Launch is great in my opinion. That comes from the next Phase of Launch the North, which will focus on Medium-Launch.
It also comes from having robust agreements and partnerships in place, such as finding space to share with allied companies in providing a launching platform for them. Companies like ISAR Aerospace from Germany, who are commited to supporting a Canadian-launch capability through their partnership with Maritime Launch, Innospace exploring Canada, Canada’s ascension to NATO STARLIFT, the introduction of the Canadian Space Launch Act.
All of these are vital to not only rapidly-building capacity, but setting the stage for Canada to move toward the Internationalization of our launch capacity. You cannot do Medium-Launch alone. You cannot support the industry off of Canadian demand alone. You need to have other customers or it isn't economically viable. This can't survive off government contracts.
There is money here. There are many new players you will see pop up, serious players, especially once Medium-Launch is on the table. You will see people step up, and for a brief moment we're going to go through a big honeymoon.
However, there are still gaps, serious gaps. There are gaps in the testing and research facilities needed by SMEs to properly develop their concepts. There is a lack of available suppliers for many of the specialized and complex components that go into launch vehicles. There is a lack of skilled personnel in the workforce, and a glut in University rocketry programs that creates a bottleneck of available talent to spread around.
All of that can be fixed, some easier than others, and a lot of capacity will come from places that you don't expect, like the Oil and Gas Industry and its supply chains. It's going to be a sharp, hard curve to get to the place we need to be to have a true, independent space industry.
However, it isn't impossible. We are making progress, quite rapidly. We have legislation, we're putting money towards things, we're slowly building up that Industry, and it is fantastic. Baby steps… there is still much to worry about, however this is something to be excited about. No doubt.
What concerns me is not that we're trying to get to orbit, but that we're following an obsolete launch paradigm. It is imperative that the Tundra design be made with at least a reusable first stage like the Falcon9 to bring down the cost of kilograms-to-orbit and increase turn-around time to be competitive with other launch companies.