The North Highland economy is set for a major boost following the announcement of a £17.3m funding package to create the UK’s first spaceport. The project, to be based at Melness in Sutherland, is set to support around 400 jobs and cement Scotland’s position as a frontrunner in the global space sector.

This investment has been secured following a successful lobbying effort by the Caithness & North Sutherland Regeneration Partnership, which brings together public agencies and key private sector bodies – including Caithness Chamber of Commerce – to address the socio-economic effects of decommissioning at the Dounreay nuclear site.

The site is planned to house a vertical launch facility for the next generation of small rockets, which will launch micro-satellites into polar orbits ideal for purposes such as communications and earth monitoring. This new breed of satellites – more of which are built in Scotland than anywhere else in the world – have led a boom in the space industry, as their relatively cheap launch costs have enabled many businesses, charities and academic organisations to access space for the first time.

While plans for the spaceport are still at an early stage, significant investment has already been made by the UK Space Agency into the project, and the ambition is to see the first launch from the site by 2020, with between five and ten launches per year thereafter.

Speaking about the announcement, Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said: “This news represents a welcome investment in the North Highlands, and a vote of confidence in the ability of the area to deliver a project of such national significance. Scotland has long been at the forefront of the UK space industry, and it is exciting to know that the North Highlands will play a key role in the industry’s future.

“Members of the Caithness and North Sutherland Regeneration Partnership have worked hard to bring this opportunity here and they should be congratulated on the part they have played. The Chamber has also been lobbying UK Government to make them cognisant of the wider picture so that when these kinds of decisions are made, they have the opportunity to maximise any investment already made in the region.

“This project has the potential to deliver high-value employment and opportunities for the local supply chain and we look forward to them getting involved in the construction and operation of the site as well as the manufacture of components. It also has the potential for spin-offs. However this doesn’t just benefit the North Highlands, this is also a win for Team Scotland, with opportunities for the wider Scottish supply chain.”