History made! South Australia welcomes world-first space return

South Australia has reached a major milestone in its space industry with the first-ever successful re-entry of a commercial spacecraft to a commercial site at Southern Launch’s Koonibba Test Range last week.

The historic event marks the first time a commercial payload has returned to Australian soil, further solidifying South Australia’s role as a key player in the global space industry.

US-based Varda Space Industries led the mission, pioneering the commercialisation of re-entry technology. The W-2 capsule, launched on 14 January 2025 aboard SpaceX’s Transporter-12 rideshare mission from Vandenberg Space Force Base in California, spent 45 days in orbit before safely returning to Earth on 28 February.

Minister for Defence and Space Industries, Stephen Mullighan highlighted the significance of this achievement.

“This is a landmark achievement for South Australia and our national space industry as the first commercial payload returning to Australian soil,” Minister Mullighan said.

“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.”

The 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.

The mission was the result of a year-long effort by Austrade and the South Australian Government, which facilitated negotiations between Varda, Southern Launch, the Australian Space Agency and DFAT.

With its unique geography and ongoing investment in space infrastructure, South Australia is positioning itself as a leader in the global space economy, with a growing international demand for easy to access return-to-earth sites.

Southern Launch CEO, Llyod Damp agreed stating, “This mission marks an incredible step forward for Australia as the global landing site for re-entries and the in-space manufactured goods the capsules carry.”

Varda Space Industries is at the forefront of orbital manufacturing, leveraging the microgravity and vacuum conditions of space to produce goods that cannot be manufactured on Earth. Varda’s pharmaceutical manufacturing capsules have been approved for two more re-entries at the Koonibba Test Range.

The successful re-entry of Varda’s capsule signals the beginning of a new era, with the state serving as a critical interface between Earth-based industries and the growing celestial economy.