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Estimating SpaceX's Reusable Rocket Cost Savings (theverge.com)

An anonymous reader writes: On Monday, SpaceX successfully landed its Falcon 9 rocket after launching a group of satellites into orbit. It's a huge breakthrough for the commercial space industry, because reusing rockets will dramatically reduce launch costs. The question now is: by how much? Elon Musk says it takes $60 million to build the Falcon 9, and $200,000 to fuel it. That's a big difference, but we can't expect them to immediately launch the rocket again after refueling it.

"The Falcon 9 experiences major temperature changes during its flights, as well as intense pressures and vibrations from the winds in the atmosphere. These all produce wear-and-tear on the vehicle's hardware — meaning the rocket might need repairs and updates before it can launch again." This kind of refurbishing is why the Space Shuttle ended up being way more expensive than expected. Fortunately, the Falcon 9 is not nearly as complex.

This is now the true test of SpaceX's design talents; if the rocket is built to be durable, then repairs and replacements could keep relaunch costs very low indeed. Steve Poulus, a former NASA project manager, suspects final costs could be driven below a million dollars. That figure would give SpaceX the capability of easily underbidding any competitor for government contracts, not to mention bringing it into affordability for any number of companies who'd like to put a satellite in orbit.

15 of 163 comments (clear)

  1. Let's make some assumptions... by CrimsonAvenger · · Score: 5, Interesting

    1) The first stage is 2/3 the total cost to launch. Which would be $40 million.

    2) They can renovate the first stage for $5 million.

    3) They can get five launches from a first stage (original plus four more).

    So, $60 million for five launches, plus the $20 million for the second stage x5.

    Which comes to $32 million per launch. A bit more than half the current price.

    Now, I consider those pessimistic assumptions.

    Alternately...

    If we replace (3) with 15 launches per first stage, we get $28M per.

    If we replace (2) with $1M per launch, we get $29M for five launches, $23.75 per launch for 15 launches.

    Big picture: reusing the first stage only will allow them to drop prices by 40-60%.

    Now, if they can reuse the second stage also, we're talking some real money....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
    1. Re:Let's make some assumptions... by beltsbear · · Score: 4, Interesting

      With SpaceX being allowed to land on actual land I think they will have nearly 100% recovery. The second stage probably won't be recovered but the distance is really not the issue. The weight of recovery equipment directly comes from payload capacity and so far there is no lightweight heat shield that can do the job. Once that secret sauce is found they can de-orbit the second stage wherever they want to.

    2. Re: Let's make some assumptions... by gerf · · Score: 4, Interesting

      They plan on making every stage reusable. Musk's long range goals include sending someone to Mars. To do so, he wants to be able to send a lot of mass into upper orbits for as low of a cost as possible.

  2. Elon Musk is pulling off impressive feats by TheReaperD · · Score: 5, Insightful

    Elon Musk and company have been making huge achievements and seems one of the few people in industry to take the long view of things and it's likely to pay off in the end even though the MBAs hate him at the moment.

    I, for one, welcome our new Martian overloard!

    --
    "Be particularly skeptical when presented with evidence confirming what you already believe." -
  3. Re:Still a lot to learn by beltsbear · · Score: 4, Interesting

    With low enough cost 0.1% is not a problem so long as the escape systems work. They can get there.

  4. Re:Reliability of refurbished booster is unknown by XXongo · · Score: 4, Insightful
    Exactly. The question of how much reusability will lower costs depends critically on how expensive it is to refurbish, as well as how much performance you trade off to save delta-V for landing the stage.

    This is complicated somewhat by the fact that rocket engines have significant economy of scale in production: if you reuse each one, say, ten times, your production rate is ten times lower, so the engines are more expensive.

    So it's not completely obvious how much savings you get. It seems pretty clear you get some. But how much?

  5. Re:Reliability by TWX · · Score: 4, Insightful

    Still, there are obstacles. SpaceX still needs to demonstrate the ability to consistently produce and launch rockets many times a year after the June accident caused an unexpected, six-month setback, something it will do with several flights planned for the weeks ahead.

    Just because it's relatively cheap to use Space X, if I have a 50-50 ( better or worse) chance that my $100 million satellite that took several years to design and build is going to get blown up, I'll pass.

    I fully expect that they'll have a tiered price structure. First, the cost of a brand-new launch won't have to be $60,000,000+ if they expect to launch the rocket again. Obviously it'll be the most expensive and will probably see the most use for the most critical launches and for manned-launches once they're man-rated, but if they expect to launch the same rocket assembly a half-dozen times then that launch might cost $20,000,000 or $30,000,000, or less than half of the cost of a one-flight rocket. Limited-reuse rockets might fetch $10,000,000 to $20,000,000 dollars for important but not absolutely critical launches where budget is important but so are timetables, and less than $10,000,000 for launches on older rockets where the loss of payload isn't that big of a deal, like replacing GPS satellites or dealing with routine communications satellite replacement over time.

    If this comes to pass, even if a customer insists on brand-new rockets for their launches, so long as there are customers interested in budget launches, the first launches will get cheaper.

    --
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  6. Re:Still a lot to learn by saigon_from_europe · · Score: 4, Insightful

    The wear mechanisms are poorly understood

    Yes, they are, because until Monday, we had exactly 0 (zero) first-stages that have returned from their missions. Thing will change now.

    --
    No sig today.
  7. economic case with different assumptions... by XXongo · · Score: 5, Interesting
    Suppose:

    1) The first stage is 2/3 the total cost to launch. Which would be $40 million.
    2) They can renovate the first stage for $5 million.
    3) They can get five launches from a first stage (original plus four more).
    So, $60 million for five launches, plus the $20 million for the second stage x5.

    Which comes to $32 million per launch. A bit more than half the current price.

    Now, I consider those pessimistic assumptions.

    Interesting numbers. Let's try a variant case. Suppose in addition:
    You're assuming that the non-reusable launch vehicle cost per launch is $60M. OK, let's start out by assuming 1/3 of that is fixed costs and operations costs, and 2/3 the vehicle cost, which is split evenly between the two stages (first stage is larger, but not proportionately more expensive). So, of the $60 million, $40 million is spent even if the vehicle first stage was free.
    Now assume that re-usability increases the launch cost by, say, $5 million (launch operations are expensive! and the cost is not entirely the vehicle).
    Assume that all the stuff needed to make the first stage reusable increases the stage cost by 25%, from $20M to $25M.
    And assume that the delta-V and the added mass to do the fly-back decreases payload by 10%, and that the price you sell the launch for decreases a similar percentage (some payloads won't care, but some will.)

    economics are much less clear now. The first stage cost drops with refurbishment from $20M to $6M, but the total launch cost only drops from $60M to $51M, whereas the price you can sell the launch for drops from $60M to $54M.

    Still an economic advantage... but only a few percent advantage.

    1. Re:economic case with different assumptions... by dlapine · · Score: 4, Insightful

      Interesting numbers. Let's try a variant case. Suppose in addition: You're assuming that the non-reusable launch vehicle cost per launch is $60M. OK, let's start out by assuming 1/3 of that is fixed costs and operations costs, and 2/3 the vehicle cost, which is split evenly between the two stages (first stage is larger, but not proportionately more expensive). So, of the $60 million, $40 million is spent even if the vehicle first stage was free. Now assume that re-usability increases the launch cost by, say, $5 million (launch operations are expensive! and the cost is not entirely the vehicle). Assume that all the stuff needed to make the first stage reusable increases the stage cost by 25%, from $20M to $25M. And assume that the delta-V and the added mass to do the fly-back decreases payload by 10%, and that the price you sell the launch for decreases a similar percentage (some payloads won't care, but some will.)

      First off, the current cost of the rocket already includes the costs to do reusibilty, so the cost of the first stage will not increase- it is designed be reused up to 10 times right now with no change in hardware.

      Secondly, the cost of the 2 stages are not even remotely close to equal; the first stage has 9 Merlin engines, the second stage only has 1. An estimate of 6 to 1 (first to second) for costs would be more reasonable.

      Thirdly, the payloads currently quoted already include reusability (16MT to LEO and 4.5MT to GTO). No loss of earnings there.

      So none your variant assumptions are useful for this discussion.

      Let's look at some other factors you haven't considered.

      Like the space shuttle, SpaceX now has a rocket for examination that has flown a full mission and hasn't had a 6G salt water landing. This means that they will be able to do full engineering analysis on what stresses the rocket actually experienced during a flight event that increase all steps necessary for re-use. The results of that analysis will allow them to determine what parts of the rocket need to be enhanced or reduced to meet the 10 tens re-use goal. SpaceX has the luxury of being to make changes to their rocket without Congressional approval, so this information can be used immediately to improve the vehicle. The design goal of the Falcon is that the rocket need not be "refurbished" after every flight, just put through some standard flight maintenance tests. Having the flown stages available for analysis will help them to meet this goal.

      Additionally, SpaceX currently has launch costs based on 6 launches a year. As they have already demonstrated the ability to launch with a cadence of 2 weeks several times, being able to increase their launch rate to a minimum of 1 a month will cut their overall costs per launch.

      Let's assume that a slight redesign based on analysis of real-world data let's them increase reliability of the Falcon 9 to 1 in 100 and increase the payload by 1MT to GTO. At 5.5MT to GTO, this let's them handle 90% of all GTO launches (6MT is at the current top end for commercial satellites to GeoSynchronous orbits) with the reuable design. 5MT is compable to $137M Ariane 5 capbility or $132M for an Atlas 5 launch for NASA with both the throw weight and reliability requirements necessary to get these flights.

      $60M to launch the current, reusable Falcon 9 1.1FT.
      33% is launch cost. - $20M
      56% is first stage - $34M
      11% is the second stage $6M

      Assumption 1: increase in flight rate reduces launch costs by 25%
      Assumption 2: landing/recovery/flight readiness check costs $5M a launch
      Assumption 3: 10 flights reuse of the first stage = $3.5M a launch

      Under these assumptions:
      Launch cost $15M
      Landing/recovery/checks $5M
      First stage $3.5M
      Second Stage: $6M

      Total: $29.5M

      I'm OK with those numbers given what they can charge and how quickly they can do regular launches. Where they will really rake in the cash is for a Facon Heavy launch (same vehicle with 3 first stages instead of 1) with 56MT to LEO for an asking price of $110M and a cost, by these assumptions of $35M. They could even reduce their price after a few launches of the Heavy to $56M, and start launching bulk cargo to space at a rate of $1000/Kg

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  8. Re:Reliability by Anonymous Coward · · Score: 4, Insightful

    Satellites don't inherently have to be that expensive, the only reason they are is that you can't afford to launch another one when the one you have fails. Because launches are so expensive it makes sense to sink money into making the sat as reliable and long living as possible. If launches were free you could whip up a functional comms sat for thousands or tens of thousand and if one fails just lob another one. The cost of payload depends on launch cost, with half the launch cost you can make the sat half as reliable, for half the cost and just lob two of them.

  9. Re:The break down of 60 million is the key. by Arnold+Reinhold · · Score: 4, Informative

    The Space Shuttle Main Engines, which push the envelope far more than SpaceX's Merlin, were reused up to 19 times. According to the Wikipedia article: "After each flight the engines would be removed from the orbiter and transferred to the Space Shuttle Main Engine Processing Facility (SSMEPF), where they would be inspected and refurbished in preparation for reuse on a subsequent flight. A total of 46 reusable RS-25 engines, each costing around US$40 million, were flown during the Space Shuttle program, with each new or overhauled engine entering the flight inventory requiring flight qualification on one of the test stands at Stennis Space Center prior to flight." There is also a chart of which engines were used on which flight. Musk and his team seem to have a clear engineering vision. This first landing of an orbital booster is just the beginning, but the potential for cutting cost to orbit through reusability is enormous.

  10. Not really by Maury+Markowitz · · Score: 4, Interesting

    "This kind of refurbishing is why the Space Shuttle ended up being way more expensive than expected"

    It was fully expected to be that expensive, the upper management simply ignored it.

    At one point when they were still considering fully reusable designs, the Phase II' candidates, management put the cost of the system at something like $100 per pound to orbit. However, they had already estimated the staffing at the Cape to be on the order of 25,000 people, which meant the payroll alone was about $500 a pound. Most estimates put the absolute lowest cost at $1000/pound. After Challenger it was over $2500, making it the most expensive launch system in US history.

    So why was management saying $100 until the end? Because the entire justification for the Shuttle was that it would be lower cost than any other system. And because of that, everyone would move their cargos to it. And since everyone moved their cargos to it, it would be launching all the time. And because it was launching all the time, the embedded payroll per launch was lower. Even then it didn't look like it could match Scout, so they came up with the Getaway Specials to try to take those, and then cancelled Scout.

    Now it was clear to everyone, including the very detailed CBO report, that if they didn't get every single payload out there, then there was no way to get the launch rates they needed to make the payroll costs go down. And as the CBO report noted, if any of those assumptions failed, it would end up being more expensive than systems like Titan. And they went on to point out that many of the payloads NASA assumed would move to the Shuttle never even existed in the first place (modular telcomsats for instance, which they just made up).

    So management lied, fully aware there was no way they could meet the numbers. And it was this precise attitude that caused the Challenger Disaster, where bad news numbers were simply ignored and replaced with ones that met political or economic criterion.

  11. Re:Reliability by ColdWetDog · · Score: 4, Insightful

    The space shuttle program ended up being extremely expensive compared to rocket launches.

    The Shuttle was the poster child for how NOT to do reusable. Government spec with 10 mission requirements orthogonal to each other, half of which are not technically possible at time of design while development is spread out over ever ZIP code in the country.

    Elon can't be dumber than Congress. Unpossible.

    --
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  12. Re: Reliability by MrLogic17 · · Score: 4, Informative

    [Citation Needed]
    Rockets are not coins. So far, the failure rate seems to be 5%. If the one failure was a statistically early event and/or the issue around that one failure is fixed, the true failure rate will be much lower.

    We need a larger data set to firmly set the real failure rate, but there is no evidence of 50/50.

    In fact, if a per launch odds really were 50/50, the probability of 19 successful launches would be 1/(2^n) or 0.00000190734 or 0.000190734%

    TLDR; you have no idea what you're talking about. Take a stats class.