Created: 2023-08-10
Updated: 2024-03-02
Product/Service - Enterprise
- Classification
- Space Stations & Habitats
- Category
- Commercial Space Station
Commercial ISS Module
Space Entertainment
- Fields
- Commercial ISS Module
- Status
- Cancelled
- First launch
- 2002
The idea for what would become Spacehab, Inc. originated in 1983 with Robert Citron, a former scientist with the Smithsonian Institution. According to the New York Times, Citron, who then lived in Seattle, conceived of a pressurized container for tourists to be carried in the cargo bay of the space shuttle. Round-trip airfare would be $1 million. NASA turned down this proposal, but voiced interest in a similar module for manned experiments.
Spacehab’s name was created as a contraction of “Space Habitat.” The company’s new mission was to provide a commercial supplement to the similar-sounding Spacelab, which was NASA’s version of the mobile laboratory that flew inside the space shuttle beginning in 1983. Spacelab was limited by funding and ultimately flew on only five flights between 1983 and 1992.
Unlike other government contractors, Spacehab would own its product and would seek service contracts for the use of it. The company raised $2 million before the explosion of the Challenger in January 1986. NASA suspended shuttle launches for two years following the accident.
During that time, Spacehab began looking for a CEO, and signed on Richard Jacobson in February 1987. Prior to his appointment, he had led the McDonnell Douglas Delta rocket program. He was preparing to retire when McDonnell Douglas offered to become the prime contractor for Spacehab. Spacehab’s chairman, James Beggs, also had long ties to the space industry, championing the commercialization of space while an administrator at NASA. In 1987, Spacehab’s offices were relocated opposite NASA’s in Washington, D.C., near the Smithsonian Institution’s National Air and Space Museum.
In the spring of 1988, the government of Taiwan offered to finance the Spacehab project’s entire $75 million estimated cost. Taiwan had been excluded from NASA’s space projects because the United States did not officially recognize its government. Unfortunately for Spacehab, however, the president of Taiwan died before their deal could be consummated. (Spacehab did receive about $10 million from private Taiwanese investors in 1989, though.)
Later in 1988, Spacehab landed a major contract from NASA. The agency authorized Spacehab to develop a 1,000 cubic foot pressurized space habitat module for the cargo bay of the space shuttle. The company would pay NASA $28 million for each of six flights to cover transportation costs and other expenses, and would lease space for up to 50 scientific experiments on the space shuttle.
Encouraged by the NASA contract, more investors— including Chemical Bank, Mitsubishi Trust Bank, and Industrial Bank of Japan—committed another $150 million to the project in 1989. The Industrial Bank of Japan dropped out within a year, however, to be replaced by Banque National de Paris and Paribas.
A Big Sale in 1990
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Because Spacehab had only eight employees in 1991, the company farmed out the design and manufacturing work. McDonnell Douglas Space Systems Company became the prime contractor for the module. Aeritalia (later Alenia SpA) designed and built most of it, while the Mitsubishi Corporation of Japan acted as its home country’s sales agent. By this time, Spacehab had $40 million committed to the module, mostly from its manufacturing partners and overseas investors. The module was expected to cost $92 million to build, plus more than $5 million a year to insure.
The buyback arrangement with NASA enabled Spacehab to secure $64 million in financing from Chase Manhattan Bank in March 1991, a deal that took two years to complete. Although the Bush administration was generally sympathetic to the space program, NASA remained subject to the whims of the federal government, with every contract subject to Congress’s annual appropriations process. A group of 150 insurers led by Lloyd’s of London provided unique insurance against these risks, while McDonnell Douglas guaranteed against cost overruns. All told, the modules cost $150 million to build.
By the middle of 1991, Spacehab had a backlog worth $250 million. Its two 1,100-cubic-foot modules, with 25 lockers each, were capable of carrying 50 experiments in all. The company was renting each locker for $1.8 million a flight—the first of which was scheduled for December 1992, but later postponed.
The Spacehab module took its first flight on the space shuttle Endeavor in July 1993. The mission lasted ten days. The Discovery then carried the module in February 1994 and February 1995. The Washington Post recorded that these three missions were backed by 46 corporations, 27 universities, and eight research institutes, as well as NASA. They studied the possibility of growing protein crystals (used in drug synthesis) or assembling semiconductors in space. In July 1995, Spacehab won a $54 million, four-mission contract to resupply Russia’s Mir space station.
Public in 1995
Spacehab launched an initial public offering on the NASDAQ exchange in December 1995. This act presented people with a rare opportunity to invest in a company solely dedicated to the commercialization of space. The company’s lack of consistent revenues, however, made it a purchase for the long term. The share price fell from $12 to $8 within a year.
By this time, there had been a change in the executive ranks. Dr. Shelley A. Harrison became chairman, while Richard P. Hora—formerly with General Dynamics Corp.—became president. Prior to these changes, Harrison had co-founded Cymbal Technologies, the company that developed bar code scanners. He had taken over Spacehab through his venture capital firm, had been on the board of directors since August 1987, and became chairman in August 1993 and CEO in April 1996.
In 1996, Spacehab was building a new module double the size of the original to help meet NASA’s massive demand for experimentation space. NASA reportedly found it cost only a tenth as much to hire Spacehab’s module as it would have to maintain its own. In 1997, NASA awarded Spacehab a Research and Logistic Mission Support (REALMS) contract that allowed the agency more flexibility in ordering Spacehab’s services.
Spacehab changed its conservative accounting practices in 1997 to allow it to report revenues earned before missions were completed. The company acquired Astrotech Space Operations, L.P., a provider of satellite processing services, from Northrop Grumman Corporation in February 1997. This became another factor keeping zeroes out of the company’s quarterly income reports and making it less dependent on NASA. Spacehab bought another NASA contractor, Johnson Engineering Corpo-ration, in July 1998. This unit (renamed Spacehab Engineering Services) conducted training for astronauts at the Johnson Space Center in Houston. All of these occurrences led to Spacehab’s reporting of a net income of $9.6 million on revenues of $64 million for the 1998 fiscal year.
In May 1999, the Spacehab module was used to resupply the first elements of the long-awaited international space station (ISS) under construction. Spacehab bought the first option on commercial space aboard the ISS from the Canadian Space Agency in August 1999. By this time, David A. Rossi was serving as Spacehab’s president.
SPACEHAB, Energia to build commercial module for ISS
Posted: Dec. 10, 1999
Artist's concept of Enterprise module to be attached to the International Space Station. Photo: SPACEHAB
SPACEHAB, Inc. today announced an historic agreement with RSC Energia of Korolev, Russia, to establish the first permanent commercial presence in space. SPACEHAB and Energia will build a pressurized module, named Enterprise, which will be attached to the International Space Station (ISS). Enterprise will be manned and dedicated to servicing a myriad of commercial mass markets on Earth."Among our new businesses will be the first independent commercial television and Internet Web-site broadcasts from space," said Dr. Shelley Harrison, SPACEHAB's Chairman. "We will also expand our highly successful S*T*A*R*S space and science education program from the Space Shuttle to Enterprise, targeting millions of youngsters around the world."
"SPACEHAB will provide a unique blend of space-originated news, information, education, entertainment programming and business advertising and promotion, broadcasting from Enterprise to Earth TV and Internet links as it orbits the Earth every 90 minutes," said Dr. Harrison.
SPACEHAB is the first company to own and operate commercial space habitation modules, flown on NASA Space Shuttles to increase pressurized volume in which astronauts can live and work. U.S. Senator John Glenn performed research in a SPACEHAB Research Module upon his return to space in October 1998 aboard the Shuttle Discovery. (Glenn's flight was SPACEHAB's fifth Shuttle research mission.) SPACEHAB Logistics Modules supported seven critical resupply missions to the Russian space station Mir and the first resupply mission to the International Space Station (ISS). RSC (Rocket Space Corporation) Energia is the leading Russian corporation in manned space operations, spacecraft, space stations, launch vehicles, communications satellites, R&D, manufacturing and launch operations, with experience from Sputnik to Mir and now the ISS.
Artist's concept of Enterprise module docked to Russian portion of International Space Station. Photo: SPACEHAB
The new pressurized space module Enterprise, which will be attached to the Russian portion of the ISS, will house a broadcast station and a research laboratory in which company-sponsored microgravity experiments targeting new biotech and advanced materials products and processes will be conducted. SPACEHAB officials estimate that it will cost approximately $100 million to develop Enterprise and establish the space media company. SPACEHAB will raise private financing for its portion of this endeavor. Energia will construct Enterprise and coordinate with the Russian Space Agency (RSA). RSA will provide launch services and other resources to the enterprise."Our long-term strategic partners Daimler Chrysler Aerospace (DASA) and Mitsubishi Corporation are highly supportive of this initiative," said Dr. Harrison. "SPACEHAB's initiative begins to fulfill the International Partners' objective of commercializing the ISS," commented DASA President Mr. Josef Kind.
"Enterprise is an historic project -- the first commercial real estate in orbit," said SPACEHAB President David Rossi. "This partnership is the first big step off Planet Earth for private enterprise in space, independent of government funding, " he said. "The ISS partners have endorsed greater commercial participation in the space station. As a private company with 15 years of experience working in manned space and partners and customers around the world, we are committed to making space commerce a reality."
SPACEHAB, with its Johnson Engineering and Astrotech subsidiaries, is the world's leading provider of commercial payload processing services for manned and unmanned payloads. The Company also supports NASA astronaut training at the Johnson Space Center.
Spacehab (Astronautix)
Status: Operational 1993. First Launch: 1993-06-21. Last Launch: 1999-05-27. Number: 14 . Gross mass: 5,000 kg (11,000 lb). Height: 3.00 m (9.80 ft). Span: 4.50 m (14.70 ft).
Spacehab, Energia Complete Basic Design Of ISS Commercial Module
Fabrication of some components is ready to begin at Energia's Korolev facilities. The partners plan to launch the commercial Enterprise Module to the International Space Station (ISS) in 2003 on a Russian Proton launch vehicle. Spacehab ImageMoscow - March 5, 2001
Spacehab and RSC Energia have completed the baseline design for their pro sped Enterprise commercial space station module project and endorsement of the project by the Russian Space Agency, Rosaviakosmos.
The partners approved the baseline design following a joint review concluded in late December. Spacehab and Energia are already at work on detailed design and procurement of long-lead-time materials and components.
Fabrication of some components is ready to begin at Energia's Korolev facilities. The partners plan to launch the commercial Enterprise Module to the International Space Station (ISS) in 2003 on a Russian Proton launch vehicle.
In support of this effort, Rosaviakosmos, RSC Energia, and Spacehab signed a Joint Resolution Concerning Basic Principles of Implementation of the Multipurpose Module Enterprise as Part of the Russian Segment on the ISS on February 16, 2001.
This agreement grants docking and utilization rights to the Enterprise partnership in return for providing functions previously planned for a Russian Docking and Stowage Module (DSM).
The Enterprise project involves development, construction, and operation of a multipurpose module as part of the ISS Russian Segment (ISS RS). For the first time in the history of space exploration and development, a project of this magnitude will be performed on a commercial basis with Russian, U.S., and, potentially, other interested companies.
As part of this initiative, Spacehab and Energia are actively seeking customers and investors for marketing and business opportunities, leveraging this unique access to space.
Enterprise will become part of ISS RS configuration, replacing the DSM and providing all of the DSM's intended functions. It will also provide additional functions including a docking port for logistics vehicles, propellant resupply via transit fuel lines, and roll control thruster accommodations while also pursuing other commercial objectives.
Enterprise is being developed to meet research, stowage, crew support, habitation and multimedia needs. This module provides the flexibility to accommodate a variety of users.
Spacehab sets prices for its planned Enterprise ISS module
Staff October 09, 2000
PRICE LIST: Spacehab Inc. and RSC Energia have listed prices for their planned "Enterprise" commercial module on the Russian side of the International Space Station, giving microgravity researchers what could be a cheaper option for ISS facilities but charging more for getting their gear to the…
Enterprise ISS Module
A private-sector partner in America’s space effort says it is teaming up with Russia’s top space company to establish a new commercial outpost in orbit. The plan calls for the construction of a pressurized module named the Enterprise, which could be attached to the International Space Station in 2002, Spacehab announced.
Spacehab Chairman Shelley Harrison said the company’s main partner in the new venture is RSC Energia, which built the Mir space station as well as the Zvezda service module that will serve as the initial living quarters on the new space station.
Problems in completing the service module have delayed the space station construction schedule by months, but Harrison voiced confidence that Energia will deliver the goods for the Enterprise.
“This company has the largest legacy and experience in building space stations and habitats,” he said.
The agreement was announced Dec. 10 at the National Press Club in Washington.
Harrison estimated that the project would cost $100 million (with Spacehab putting up half that amount) and take 24 months to complete, although he conceded that the schedule “might be a little bit aggressive.” The 12-foot-diameter, 36-foot-long Enterprise module would be built at Energia’s Korolev construction facility and launched into orbit by the Russian Space Agency atop a Zenit-class rocket, Harrison said.
Schematics indicate that the Enterprise would be attached to the Russian segment of the space station, between the Zarya control module and the U.S.-built Unity connecting node.
Extending the business
Spacehab’s current core business involves flying experiments and supplies in pressurized modules within the space shuttle’s cargo bay, and Harrison said the new venture would extend that line of business to the International Space Station.
“One portion of the Enterprise will be devoted to research activities” that would require an extended time in the space environment, such as protein crystal growth or materials research, he said.
Harrison said another part of the module would be used as an orbital broadcast station, beaming video and data back to Earth for telecasts and Webcasts. The company tested its Spacehab Universal Communication System aboard the space shuttle in June 1998, and Harrison said that technology would be adapted to the Enterprise.
Cameras and scientific experiments could be mounted on the module’s exterior, and there would be “at least one window,” Harrison said.
Spacehab would set up a media subsidiary to provide a blend of news and information, educational and entertainment programming, advertising and promotion, he said.
“The media company would basically pay for the use of assets and services of the parent company,” Harrison said. “The reason (for this) is that we feel it’s a different business.”
There could be additional opportunities for e-commerce through the global sale of educational and promotional materials. Harrison said the company’s science education program, known as S*T*A*R*S, would also be extended to the Enterprise.
“We’ll have a cosmonaut, at least in the early years, who will work for us,” Harrison said. As time goes on, specialists might be trained as astronaut-broadcasters for the Enterprise.
He said Spacehab was “talking to a range of companies” that could use the content generated by the new venture.
NASA's role
One might well ask what role NASA has in all this. “There’s no direct involvement as far as NASA is concerned,” Harrison replied.
However, he said, the Enterprise plan was in line with NASA’s long-range goals.
“Once again we’re taking the initiative, since all the space agencies around the world have proclaimed that they are looking forward to commercialization,” Harrison said.
NASA has been soliciting proposals for commercializing a future habitation module on the U.S. side of the International Space Station, and Harrison said Spacehab was taking part in those discussions as well. “However, our feeling was that that (venture) has yet to be defined and funded,” he said.
The concept currently being considered by NASA would result in a module with inflatable outer walls — a design concept that has been dubbed TransHab. Harrison said the TransHab design involved “technology that will be important for the future but is (currently) unproven.”
Experts say developing and deploying a TransHab module could cost hundreds of millions of dollars, but Harrison seemed confident that the Enterprise could be built for less. He said Spacehab had already begun the financing effort, drawing upon the company’s experience in handling hundreds of millions of dollars’ worth of business involving the space shuttle program.
“I don’t think another $100 million that takes us to the new millennium on station is going to be a problem,” he said.
Update for May 2000: Since this report was published in December 1999, Energia has become involved in another commercial space effort relating to the Mir space station. Energia owns 60 percent of Amsterdam-based MirCorp, which is leasing the Russian station for commercial purposes.
Spacehab’s ‘Enterprise’ moves to Shuttle for lift, but customers remain elusive (SpaceRef, 2001-10-08)
MPM (Enterprise) - Gunter's Space Page
Due to lack of funds, the MPM Enterprise was cancelled. It was replaced by the MLM module.
Space Media
Entermedia
In 2007, there were 2 warnings from NASDAQ about deficiencies.
Space station module and related in-space products/services seem cancelled as of 2023.