The Wall Street Journal reports that Blue Origin has won a contract from United Launch Alliance to supply BE-4 engines for United Launch Alliance’s Vulcan launch vehicle. An announcement is expected today.
The decision would be a defeat for Aerojet Rocketdyne, which has been developing the AR1 engine.
The long-term, potentially multibillion-dollar agreement could provide a boost to Blue Origin’s eventual goal of becoming a major military launch provider itself. The company plans to use the same engines to power its own heavy-lift launcher, called New Glenn, which is currently under development.
Competition in the satellite-launch business is heating up. The Air Force is considering how to divvy up hundreds of millions of federal dollars to develop a fleet of lower-cost, more versatile rockets. Blue Origin, United Launch, Elon Musk’s Space Exploration Technologies Corp. and Northrop Grumman Corp.’s Innovation Systems unit, formerly known as Orbital ATK, are all in the running. The Air Force is preparing to shortly announce the first-stage winners….
Negotiations between United Launch and Blue Origin dragged on for months, with both sides bargaining hard over price, delivery schedules and production reliability. Other hurdles, according to two people familiar with the details, included United Launch’s concerns about relying on a prospective rival for its most important engine supply. It couldn’t be learned what provisions were hammered out.
Blue Origin beat out Aerojet Rocketdyne Holdings Inc., which had sought to sell its AR1 engine as the primary propulsion system for the Vulcan. A spokesman for Aerojet, which previously was picked to provide smaller, upper-stage engines for the ULA rocket, said “we are committed” to the AR1 engine and “will have a test-ready engine in 2019.” The spokesman also said that regardless of the decision, Aerojet’s “liquid engine business is thriving,” and the AR1 remains an option for possible smaller launch vehicles on the drawing board.