Deep Blue Aerospace Raises New Funds, Targets Mid-Year Orbital Launch

On March 10, 2025, the Chinese launch startup, Deep Blue Aerospace, announced the successful completion of a significant funding round totaling nearly 500 million yuan (approximately $68.9 million). This investment marks a critical juncture in the company’s trajectory as it prepares for its first orbital launch and recovery attempt scheduled for mid-2025.

The funding round was led by the Taian Yuanwang New Energy Industry Investment Fund, a subsidiary of the state-owned Taishan Industrial Development Investment Group. This capital will primarily be directed toward the research, development, and commercialization of Deep Blue Aerospace’s Nebula series of reusable launch vehicles.

The CEO of Deep Blue Aerospace, Huo Liang, highlighted the strategic importance of this funding in a statement, asserting that it arrives at a pivotal moment as China transitions from the technical validation phase to the commercial operation of reusable rockets.

This investment aims to enhance the commercialization of space technologies and foster stronger ties between the aerospace industry and the regional economy. It also aims to establish the city of Taian as a leading hub for space technology on a global scale.

Mid-Year Target for Nebula-1

Deep Blue Aerospace has now set a target for the first launch of its Nebula-1 orbital rocket for the middle of the year, expected to take place from the new commercial spaceport located on Hainan island. The launch will also include an attempt to recover the first stage through powered descent and landing.

The Nebula-1 rocket has already undergone several critical tests, including engine tests and verification of its control systems. According to the company, the maturity and reliability of the rocket engine technology have been continuously validated, with a full system integrated test on the horizon.

The Nebula-1 employs a propellant mixture of kerosene and liquid oxygen, designed to carry payloads up to 2,000 kilograms into low Earth orbit (LEO). The rocket utilizes nine engines on its first stage, which boasts a diameter of 3.35 meters. Last year, Deep Blue Aerospace conducted a 179-second vertical liftoff and landing (VTVL) flight test with an orbital test stage. However, this test ended with an anomaly during the landing attempt, resulting in an explosion and loss of the test stage.

Nebula-2 in 2026

In addition to the forthcoming Nebula-1, Deep Blue Aerospace is planning to launch a larger rocket, the Nebula-2, as soon as 2026. The Nebula-2 will feature a diameter of 5.0 meters and an approximate length of 70 meters. It will be powered by 11 Thunder RS engines and is expected to carry payloads exceeding 25,000 kilograms to LEO, reflecting an ambitious expansion in capacity. Previous estimates indicated a capacity of around 20,000 kilograms.

The Thunder RS engines are self-developed kerosene-liquid oxygen engines with a deep throttling range (30-110%), which are designed for over ten reuses. To support its growth, Deep Blue Aerospace has established a liquid rocket engine additive manufacturing base in the Wenhe Aerospace Economic Industrial Park located in the Wenhe district of Taian city, with production plans capable of generating up to 160 engines annually. Another commercial rocket player, Orienspace, has also set up a launch vehicle manufacturing base in this same industrial park.

Deep Blue Aerospace is also venturing into suborbital tourism services, aiming to commence tourist flights as early as 2027.

As with many other commercial launch providers in China, the scaling of Deep Blue Aerospace’s launch vehicles is driven by the need for greater capacity and launch frequency necessary to facilitate China’s planned construction of the national Guowang and Shanghai-backed Qianfan/Thousand Sails megaconstellations.

The Chinese government has reiterated its commitment to supporting the commercial space sector during the ongoing national political sessions in Beijing, with reusable rockets being a primary focus of this support.

Other new Chinese commercial rockets projected for launch this year include the stainless steel methane-liquid oxygen Zhuque-3 (Landspace), Tianlong-3 (Space Pioneer), Pallas-1 (Galactic Energy), Gravity-2 (Orienspace), and Hyperbola-3 (iSpace). Additionally, the reusable Long March 12A, developed by major state contractor CASC, may also have a flight in 2025.