A low-cost hybrid rocket propulsion system that would be able to launch micro-satellites for commercial and military applications appears to be moving toward reality.

Poway, Calif.-based SpaceDev [OTCBB: SPDV], the creator of a propulsion program involving a small launch vehicle designed as an orbital transfer space tug, is participating in the SpaceShipOne program unveiled April 18 by Mojave, Calif.-based Scaled Composites. The private sector SpaceShipOne program has been in the works for two years to develop an airborne launcher, known as the White Knight, and a space tug known as SpaceShipOne. The program is also developing components for rocket propulsion, avionics, simulator and ground support, Scaled Composites officials said.

SpaceDev’s launch of its Cosmic Hot Interstellar Plasma Spectrometer (CHIPS) micro-satellite on Jan. 12, combined with growing military demand for micro-satellites and space control, position the company to offer a private space program and family of products, said Jim Benson, its founding chairman and chief executive. For the last three years, SpaceDev has been designing an expendable small launch vehicle named SpaceDev Streaker that could put 1,000 pound payloads into low-Earth orbit at a price below existing or planned small launch vehicles, he added.

–Paul Dykewicz