Why We Need Ferries and Tugboats in Space w/ Orbital Operations | E2208
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features a TWIST 500 interview with Orbital Operations, a space tech startup building "space tugs" to move satellites in orbit. CEO Ben Schleuniger discusses their innovative cryogenic orbital maneuvering vehicle called Astraeus, which solves the problem of movement in space using super-efficient propulsion systems. (02:56)
• The main theme centers on solving space logistics through advanced refrigeration technology to store cryogenic fuels in orbit, enabling reusable space vehicles for defense and commercial applications
Speakers
Ben Schleuniger
Co-founder and CEO of Orbital Operations, part of the Winter 2025 Y Combinator batch. Ben comes from a launch vehicle background, bringing expertise in cryogenic propulsion systems and space defense applications to the startup space.
Alex Wilhelm
Host and technology journalist covering startups and emerging tech. Alex has extensive experience analyzing space startups and is a self-described science fiction enthusiast with particular interest in the commercialization of space.
Key Takeaways
Master the Art of Efficient Movement in Your Domain
Orbital Operations focuses on solving the "movement problem" in orbit - getting satellites from low Earth orbit to higher positions efficiently. (03:47) Just as reusable rockets transformed launch economics, creating reusable orbital vehicles can revolutionize space logistics. The key insight is identifying bottlenecks in existing systems and building solutions that eliminate disposal costs while maximizing efficiency.
Leverage Heritage Technology in Novel Applications
Rather than reinventing propulsion from scratch, Orbital Operations uses proven rocket engine technology combined with breakthrough refrigeration systems. (11:13) This approach reduces technical risk while solving the core innovation challenge - keeping cryogenic fuels cold in space. The lesson: combine established, reliable components with your unique innovation to create competitive advantage.
Build for Dual-Use Markets from Day One
Orbital Operations designed their technology to serve both commercial logistics and defense applications. (27:01) The government actively seeks dual-use technologies that aren't solely dependent on military contracts. This strategy diversifies revenue streams and creates multiple paths to profitability while accessing substantial defense budgets.
Embrace Capital-Intensive Innovation When the Market Demands It
Despite needing $150-200 million to reach their first operational vehicle, Orbital Operations secured strong early traction with $1.4 billion in commercial letters of intent. (21:42) When solving fundamental infrastructure problems, higher capital requirements can be justified by enormous market potential and competitive moats.
Design for Refuelability from the Start
Orbital Operations' vehicles are designed as "mostly propellant" - resembling rocket third stages more than traditional satellites. (19:15) Their innovative approach uses water electrolysis for refueling, splitting water into hydrogen and oxygen in orbit. This creates a sustainable operational model where vehicles can complete multiple missions rather than being disposable.
Statistics & Facts
- Orbital Operations has secured $1.4 billion in commercial letters of intent for their space ferry services, with potential for 15-20 vehicles needed to service just these initial commitments. (21:42)
- Traditional financial companies like E*TRADE spend over $1,000 per customer acquisition, while Robinhood achieved growth through organic word-of-mouth with minimal marketing spend. (66:03)
- The Astraeus orbital maneuvering vehicle will generate approximately 18,000 pounds of thrust, enabling rapid response capabilities compared to electric propulsion systems that provide minimal thrust. (12:31)
