Chinese rocket engine startup Space Circling recently obtained funding worth more than 100 million yuan ($13.9 million) to foster the development of innovative engines for commercial space activities. The company, also known as Shaanxi Tianhui Aerospace Technology Co. Ltd., announced the closing of its Series A funding round on February 18, backed by various strategic investors.

Space Circling is dedicated to the creation of tailored rocket engines, particularly its Honglong1 and Qiaolong1 kerosene-liquid oxygen rocket engines. The recent funding will primarily be channeled into the establishment of an industrial base for these engines, allowing for their mass production. A successful hot-fire test for one of the engines was conducted at the end of January, and the firm anticipates mass-producing the Qiaolong1 engine by the end of the year.

The company’s founder, Liu Hongjun, declared that there’s a surge in demand for high-thrust, liquid rocket engines within the commercial aerospace sector in China. Liu packs plenty of experience, having notably been the chief designer for a kerosene-liquid oxygen rocket engine under CASC, China’s main state-owned space contractor. He mentioned that he aims to lower the cost of accessing space and ensure China’s relevance in the new economic era in space.

Space Circling, which enjoys local backing, plans to develop reusable launchers using its engines. These include the Huilong1 and Huilong2, capable of lifting five metric tons and nine tons to sun-synchronous and geosynchronous transfer orbits respectively. The startup also profits from China’s military-civil fusion strategy, which allows technology transfer between the military and commercial arenas.

In a broader context, there’s a push for innovation within several Chinese cities and provinces, all aiming to stimulate their local commercial space sectors. Both Beijing and Shanghai have already unveiled action plans in this regard. Furthermore, with China planning to construct one or more low Earth orbit communications megaconstellations, the nation needs to increase its launch options, hence the hunt for reusable launch vehicles.

Source: Chinese rocket engine startup Space Circling secures funding.