Key Points

Jeff Bezos space company Blue Origin received both positive and negative developments last week.
Positive development: NASA granted Blue Origin additional contracts for moon launches.
Negative development: Blue Origin currently lacks an operational rocket and launch pad.

Space exploration presents significant challenges where favorable outcomes can rapidly shift to setbacks.

Two weeks ago Blue Origin the firm founded and led by Amazon.com founder Jeff Bezos appeared highly successful. NASA revealed that under its Project Artemis initiative aimed at returning humans to the lunar surface Blue Origin would handle two separate missions using its Blue Moon Mark 1 uncrewed lunar lander to place rovers on the moon.

This came alongside Blue Origin selection for NASAs Moon Base I mission the initial phase of building a lunar outpost by landing a third MK1 unit at Shackleton Connecting Ridge near the lunar South Pole. It also built on the September contract win worth 190 million dollars to deliver the VIPER rover to the moon in 2027.

That brings the total to four MK1 lunar landing contracts.

NASAs VIPER rover is set for delivery to the moon via Blue Origin. Image source: NASA.

The overall contract values remain somewhat uncertain but NASA valued the two rover missions at 188 million dollars with potential additional work worth 280.4 million dollars. No specific figure was given for the Moon Base I effort.

Beyond the financial aspects NASA positioned Blue Origin as central to a moon base initiative projected to generate over 30 billion dollars in future awards.

Then misfortune occurred.

Image source: Getty Images.

Red fireball over Blue Origin

Just two days after NASA disclosed the three newest lunar lander missions for Blue Origin the firms leading vehicle New Glenn detonated during a standard engine test in Florida.

Blue Origins four NASA contract victories positioned the company for extended success. Four MK1 moon landings compared to none for SpaceX would offer critical operational experience ahead of its first crewed landing with an advanced Blue Moon lander known as the MK2. This could provide an edge over SpaceX in upcoming bids for both crewed and uncrewed lunar missions.

Yet to capitalize on this experience Blue Origin requires a reliable rocket and a functional launch site. Both elements now face issues.

Blue Origin has conducted only three New Glenn flights to date. The initial launch succeeded fully. The second achieved both launch and barge landing at sea. However the third flight in May encountered a problem that left its second stage unable to deploy an AST SpaceMobile satellite resulting in satellite loss and concerns over second stage dependability.

Moreover last months New Glenn detonation seems to have started in the first stage. This raises doubts about the reliability of both stages.

Compounding the situation the blast harmed Blue Origins sole New Glenn launch facility Launch Complex 36 at Cape Canaveral. It eliminated one lightning tower possibly affected another damaged the primary support tower and extensively harmed the transporter erector system.

Repairs are projected to require several months at least. Until resolved Blue Origin cannot conduct New Glenn launches even after addressing rocket issues.

What this means for Blue Origin for NASA for SpaceX and for everyone in space

This development significantly disrupts NASAs lunar base timeline. Delays in restoring Launch Complex 36 combined with New Glenn flight issues will likely postpone the VIPER mission and potentially the other planned landings.

Some possibility exists that Space Exploration Technologies might assist if its Falcon Heavy or Starship can be adapted to transport Blue Origins MK1 landers. While this would represent a less ideal path for Blue Origin it could serve as NASAs practical alternative.

Further updates will follow.

Although challenging for others this situation may benefit SpaceX and its shareholders following the recent SpaceX IPO completion.

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Rich Smith holds no positions in the mentioned stocks. The Motley Fool maintains positions in and recommends AST SpaceMobile and Amazon. The Motley Fool follows a disclosure policy.

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