Canada is accelerating efforts to foster its domestic space launch industry to reduce dependence on foreign launch vehicles.

On Oct. 1, the IT outlet Ars Technica reported that Canada Rocket Company decided to skip the small-rocket development stage and directly develop the medium-lift R-2 launch vehicle.

The Canadian government in March selected three companies — NordSpace, Reaction Dynamics and Canada Rocket Company — for initial support under the Defence Ministry project "Launch the North" to launch satellites independently. Each company will receive 8.33 million Canadian dollars (about 794 million won). The overall project is set to invest 105 million Canadian dollars (about 100.5 billion won) over three years. The government aims to secure independent capability to launch satellites from Canadian territory using Canadian-built rockets.

The R-2 being developed by Canada Rocket Company is a medium-lift launch vehicle that can deliver up to 12.5 tonnes to low Earth orbit. It uses 9 methane engines and a gas generator cycle. It also plans to include landing gear that takes future first-stage reusability into account. The target launch date is 2032. The company said it changed its development strategy after reviews with about 150 engineers concluded that most small launch-vehicle development experience does not carry over to medium rockets.

The Canadian government is also elevating space launch as a strategic industry. In its defence industrial strategy announced this year, it designated space as one of 10 core sovereign capabilities and included space launch in its priority areas.

Canada Rocket Company plans to build the Jeremy Hansen test facility on a 50-acre site near London, Ontario. It plans to install up to three vertical and horizontal test stands to test rocket engines with thrust of 1 meganewton or more. It aims to begin tests of its in-house E-1 engine in about two years.