Exploring the Potential for Lunar Commerce

On June 24, 2005, space-related industry leaders invited non-space industry executives to a dialogue exploring how lunar commerce could help achieve the economic growth foreseen by the national Vision for Space Exploration. One of the key conclusions was that publicly-funded exploration should facilitate a truly open approach to lunar development, providing flexibility for business and government stakeholders in entry, exit, collaboration, and innovation. In creating such a system, the perspective of non-space business leaders is critical because they understand how to go beyond government contracting and create truly commercial markets, where government is only one of many customers.

To keep the event small and informal enough for genuine dialogue to begin, the invitation-only executive roundtable was held to under 100 participants and was closed to the press. The agenda was comprehensive, addressing enabling technologies, potential commercial markets, public-private interaction options, and legal issues. Industry sponsors included five established space industry contractors (The Boeing Company, Lockheed Martin Corporation, Honeywell International, Northrop Grumman Corporation, and the Raytheon Company), one entrepreneurial space company (Transformational Space Corporation – “tSpace”), and one company outside the traditional space sector (Bechtel Corporation). To emphasize the necessity of involving the business community outside the traditional space sector, the event was hosted by The Maguire Energy Institute, affiliated with the Cox Business School of Southern Methodist University. NASA, as well as numerous members of the academic and entrepreneurial communities, provided technical consultation and associated services. Representing state governments encouraging lunar commerce as a potential source of new high-tech jobs, the Texas Governor’s Office also participated. Two more roundtables are anticipated by early 2006, retaining a dialogue focus but expanding in both size and scope.

Recognizing that deployment of satellites in Earth orbit has already created a multi-billion dollar telecommunications industry, roundtable participants learned that extending economic activity somewhat further into space might enable even greater economic growth. The spectacularly successful Apollo program clearly demonstrated both that the Moon is accessible and that lunar materials have potential commercial uses. Subsequent technical advances— in chemistry, robotics, and communications, to name only a few—have made development of this nearby “eighth continent” even more practical today. Potential commercial markets include energy, transportation, mining, construction, manufacturing, entertainment, advertising, branding, and sponsorship. Such markets might both provide products valuable on Earth and stimulate economic growth on or near the Moon. Affordable initial assessment of lunar opportunities might begin soon—using new, advanced robots that can be deployed before significant human presence is achieved.

But lunar development poses significant risks for both public and private sector stakeholders. For industry, risks include technical, market, financial, and legal-regulatory factors. For NASA, there are risks associated with ensuring the affordability and sustainability of publicly funded space exploration efforts. Mutual need raises the possibility of industry and government cooperation. Early and open dialogue is the first step toward developing truly effective risk- reduction partnerships.