South Australia's space industry has achieved a new milestone with the first ever commercial spacecraft re-entry of the Varda Space Industries capsule at the Southern Launch Koonibba Test Range last week.
This is the first time a commercial payload has returned to Australian soil on a commercial site, and one of the first globally.
This activity makes South Australia the national centre for the full space flight ecosystem – from launching into space, to supporting the industry that is testing and manufacturing in space and then returning safely to Earth.
US company Varda Space Industries is commercialising re-entry, much like SpaceX and others have commercialised launches.
Varda is a pioneer in orbital manufacturing, which uses the microgravity and vacuum conditions of space to produce goods that cannot be manufactured on Earth.
The W-2 capsule was launched on 14 January 2025, and lifted off aboard the Transporter-12 rideshare mission with SpaceX from Vandenberg Space Force Base in California. In total, it spent 45 days orbiting Earth before re-entering the Earth's atmosphere and landing on 28 February at 1.02am local time.
Varda pharmaceutical manufacturing capsules have been approved for a further two re-entries at Koonibba Test Range.
The re-entry is the result of significant year-long efforts by Austrade and the South Australian Government.
Austrade initiated the introduced of Varda to Southern Launch and engaged with the Australian Space Agency and DFAT to commence negotiations, concluding with a treaty-level Australia-US Technology Safeguards Agreement (TSA).
This agreement enabled Varda and pharmaceutical supply chains, and the rules-based international trading system, to function 'off-planet'.
Combined with Australia's unique geography, these efforts are building a global space industry in Australia and placing Australia and South Australia at the interface between the world's terrestrial and celestial economies.
As put by Minister for Defence and Space Industries Stephen Mullighan
This is a landmark achievement for South Australia and our national space industry as the first commercial payload returning to Australian soil.
This milestone not only solidifies our position as a global leader in space launches and returns, but also opens up commercial opportunities, attracting international attention and investment.
As put by Minister for Trade and Investment Joe Szakacs
All eyes are on South Australia from the global space industry – setting the stage for our state to be in international demand for an easy to access return-to-earth site.
There is a huge opportunity for our state from scientific and commercial outcomes related to microgravity – such as pharmaceuticals, fibre optics, and other chemical processes that focus on crystalline structures.
