Varda Space Industries (Varda) is a California-based life sciences company that processes materials such as high-end pharmaceutical crystals in orbit and returns them to Earth. In 2024, Varda became the first company in the world to return a payload to land on a commercial licence.
Varda selected Australia as its future landing site after being approached by Australian space officials. The company partnered with the Australian Space Agency and Australian space launch and returns provider Southern Launch to obtain a licence and schedule the landing.
In February 2025, Varda’s W-2 capsule returned to Earth at Southern Launch’s Koonibba Test Range in South Australia. It was Australia’s first-ever commercial space re-entry. And in May 2025, Varda and Southern Launch followed up with a second return, welcoming Varda’s W-3 capsule back to Earth. A third return is being planned for the W-4 capsule, which launched in June 2025.
‘Australia is rapidly becoming the global leader in commercial space returns,’ says Josh Martin, Vice President of Government Affairs, Varda Space Industries. ‘This gives Australia a huge first-mover advantage in commercial space operations.’
The dawn of a new space industry
Varda was founded in California in January 2021 by Will Bruey, a SpaceX veteran, and Delian Asparouhov, a partner at the venture capital firm Founders Fund. The company’s goal: to help bring the orbital economy to life by manufacturing products in orbit and returning them to Earth.
According to Martin, some products can only be made in the pristine, weightless conditions of space. These include life-saving pharmaceuticals and powerful fibre-optic cables. Varda’s technology automates production once the payload is in space.
Varda gained a commercial licence from the US Federal Aviation Administration (FAA) to land payloads on Earth. But the company’s challenge was where to land after the W-1 mission spent 8 months in orbit due to coordination issues with the US Government.
‘We were reliant on the US military because there are no commercial re-entry ranges in the US,’ says Martin. ‘We wanted a commercial partner for landings, where we could quickly ramp up the pace of launch and returns.’
A southern hemisphere landing zone
Australia was one option, thanks to the country’s fast-growing space industry.
‘Australia had 2 great attractions for us,’ says Martin. ‘First, the country is wide open for commercial space. Second, Australia can cope with a higher frequency of returns.’
Southern Launch owns and operates the 41,000-square kilometre Koonibba Test Range in South Australia. The Test Range is fully instrumented with telemetry, radars, and ground and airborne optical and spectral image-capture capabilities. Low sea and air traffic in the area aids launch and recovery operations.
Austrade first introduced Varda to Southern Launch’s CEO Lloyd Damp at the 2022 Space Symposium in Colorado Springs. The two companies signed an MOU in 2024 to conduct re-entry operations at the Koonibba Test Range.
‘Southern Launch has been fantastic to work with in terms of engineering, logistics and safety,’ says Martin. ‘As a commercial operation, they can help us increase the cadence of returns – to as often as we need a landing site.’
Varda’s W-3 capsule returned to Earth at Southern Launch’s Koonibba Test Range.
Australia’s historic first
The first return of a Varda payload in Australia took place in February 2025.
‘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,’ said Southern Launch CEO Lloyd Damp after the W-2 capsule’s return. ‘Southern Launch is looking forward to continuing to contribute our world-class facilities, re-entry permitting, and range operations to future missions with Varda and their partners.’
Enrico Palermo, Head of the Australian Space Agency, added: ‘This historic return highlights the opportunity for Australia to become a responsible launch and return hub for the global space community – capitalising off the geographic advantages of our expansive continent.’
Read more about Southern Launch’s capabilities and why Australia is an ideal destination for space launches and re-entries.
US-Australia regulatory alignment
Varda are pioneers in another sense – regulation. To launch in the US but land in Australia, Varda needed to work within two sets of national regulations. This could have been a nightmare. It wasn’t.
‘Actually, it’s been a great learning experience, and not as complicated as we would have thought,’ says Martin.
For example, collaboration between the FAA in the US and Australia’s Australian Space Agency meant Varda did not have to duplicate safety analyses.
‘We’ve been able to get the regulatory process to largely align,’ says Martin. ‘It’s been an effort – of course – but working with the Australian Space Agency has been straightforward.’
Assistance from Austrade
From 2023 onwards, Austrade advisors helped Varda investigate options in Australia and address regulatory challenges.
‘Austrade has done an incredible job of introducing us to Australia,’ says Martin. ‘Advisors made initial connections with Australian organisations, such as the Office of the Space Regulator, the Civil Aviation Safety Authority and the Australian Border Force.
‘Austrade also arranged introductions to high-level Australian decision-makers, including Prime Minister Anthony Albanese, and the Minister for Science, Industry and Technology.’
Martin says Austrade also made direct connections with South Australian officials, and organisations such as Defence SA.
‘Working with Austrade, South Australia, and the Australian Space Agency has been an integral part of our partnership,’ he adds. ‘Austrade continues to provide helpful contacts within government.’
Working with First Nations people
Southern Launch works closely with the Koonibba Community Aboriginal Corporation at the Koonibba Test Range. The First Nations community plays a critical role on launches and returns. Southern Launch consults with the community to determine if a rocket will land in an area of cultural significance, and adjusts the return point if it does.
‘We have an amazing opportunity to engage with the First Nations community,’ says Martin. ‘Members of the community come out with the recovery teams to retrieve the capsules when they land.’
Additionally, Koonibba Aboriginal Community artist Christina Tschuna designed the W-2 and W-3 official mission patches.
‘The Koonibba community have been wonderful partners,’ Martin adds. ‘It’s great to have them as part of our program.’
Australia’s role in the future space industry
The Australian space industry looks set to benefit from its first-mover advantage.
‘Australia gives us the ability to quickly get our payloads back – and that’s a game-changer,’ says Martin. ‘Our partnership with Australian agencies is helping the space economy in the US and Australia to grow.’
John Leslie, Trade and Investment Director for Austrade in North America, says that Australia’s ability to host commercial space returns will have a global impact.
‘This is a great moment in the space industry,’ he says. ‘We are moving terrestrial operations into space.’
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