WATCH | Japanese Space Milestone Turns To Disaster: First Private Satellite Explodes On Launch

On its inaugural trip, Japan's Space One witnessed the explosion of its small, solid-fuelled Kairos rocket shortly after launch on Wednesday, as the firm attempted to become the first Japanese company to place a satellite in orbit.

The 18-meter (59 ft), four-stage solid-fuel rocket was observed exploding seconds after being lifted off just after 11:01 a.m. (0201 GMT).

WATCH | Japanese Space Milestone Turns To Disaster

A large cloud of smoke and a fire near the launch pad were left behind, visible on a local media livestream of the launch situated on the tip of the Kii peninsula in western Japan. An experimental government satellite, capable of temporarily replacing intelligence satellites currently in orbit in case of malfunction, was onboard Kairos.

No immediate indication of the cause of the explosion or whether there were any injuries was provided. It is typically the case that there are no people anywhere nearby during a launch. The launch, initially planned for Saturday, was postponed after a ship entered the nearby restricted sea area.

In the space race, despite Japan being a relatively small player, efforts are underway by the nation's rocket developers to construct more cost-effective vehicles, aiming to meet the surging demand for satellite launches from both the government and global clients.

Established in 2018 by a consortium of Japanese companies, including Canon Electronics, the aerospace engineering unit of IHI, construction firm Shimizu, and the state-backed Development Bank of Japan, Tokyo-based Space One finds itself in the midst of this ambitious endeavor.

Minority stakes in Space One are held by two of Japan's largest banks, Mitsubishi UFJ and Mizuho. Following Wednesday's failed launch, shares in Canon Electronics experienced a decline of more than 8%. Space One's aspirations involve offering "space courier services" to both domestic and international clients, with the goal of launching 20 rockets annually by the late 2020s, according to its president Masakazu Toyoda.

Despite experiencing four delays in Kairos' inaugural launch window, the company has reported that orders for its second and third planned trips have already been secured, including from an overseas customer. While Space One remains discreet about Kairos' launch costs, company executive Kozo Abe noted that they are "competitive enough" when compared to American rival Rocket Lab.

Rocket Lab, which has launched over 40 Electron small rockets from New Zealand since 2017, charges roughly $7 million per flight. Several Japanese companies have utilized Electron for their missions, including radar satellite manufacturers iQPS and Synspective, as well as orbital debris-removal startup Astroscale.

Furthermore, the state-funded Japan Aerospace Exploration Agency (JAXA) recently achieved success with the launch of its new cost-efficient flagship rocket, the H3, with plans to deploy approximately 20 satellites and probes into space by 2030. In 2019, Interstellar Technologies conducted Japan's first privately developed rocket launch with its MOMO series, albeit without a full-scale satellite payload.

Collaborating with the United States, Japan aims to revitalize its domestic aerospace industry in response to technological and military competition from China and Russia. In support of this effort, the government pledged "comprehensive" assistance for space startups possessing technology critical for national security, with a focus on constructing satellite constellations to bolster intelligence capabilities. Recently, Japan's defense ministry announced a partnership with Space One to enhance the payload capacity of its rockets through experiments with fuel-efficient methane engines.