Varda’s W-2 Capsule Successfully Returns to Earth at Koonibba

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South Australia will benefit from economic expansion into low Earth orbit after Adelaide-based company Southern Launch completed a world-first achievement – landing a commercial spacecraft to a commercial test range.

The return of the W-2 capsule to South Australia proves that manufacturing materials in orbit and returning the materials safely to Earth is not only possible but can become as common as a space launch.

California-based Varda Space Industries enlisted Southern Launch to partner on the W-2 mission. The W-2 capsule returned to Earth safely at Southern Launch’s Koonibba Test Range in the early hours of February 28, 2025, completing a dual-purpose mission with payloads from the United States Air Force, NASA and Varda’s own expanded pharmaceutical reactor.

Southern Launch was responsible for sourcing the regulatory approvals and permitting for the W-2 mission. During re-entry operations, the Southern Launch team also ensured air and sea space remained clear for public safety and employed advanced tracking telescopes to watch the capsule reenter and land under parachute.

Additional space re-entries to the Koonibba Test Range will support jobs and manufacturing on the Eyre Peninsula, bring investment to the Koonibba community, who operate the Koonibba Test Range in partnership with Southern Launch and continue to grow the South Australian space sector.

“The W-2 mission confirmed to the world that the Koonibba Test Range is the best global landing site for in-space manufacturing spacecraft,” said Southern Launch CEO Lloyd Damp. “This mission resulted in significant international investment to South Australia and the Eyre Peninsula. With many more international companies looking to the Koonibba Test Range to return spacecraft, we are looking forward to bringing even further investment to our state.”

The space re-entry opportunity for South Australia is significant. Low sea and air traffic, good year-round weather and large expanses of land make the Koonibba Test Range a good place to return in-space spacecraft.

“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 continent,” said Australian Space Agency Head Enrico Palermo. “This return is the culmination of many years of work across government and industry to generate opportunities to grow our local space sector for the benefit of all Australians.”

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