The Department of National Defence’s Defence Research and Development Canada (DRDC) released a new Innovation for Defence Excellence and Security (IDEaS) Challenge called ‘Launch the North’ that if successful would see sovereign launch capability no later than 2028.
The Challenge comes 58 years after the release of the government Special Study No 1 titled Upper Atmosphere and Space Programs in Canada which recommended “the initiation of a design and cost study for a small-satellite launch vehicle and related facilities for Canadian use.” The seminal report would become known as the Chapman Report and influenced Canada’s young space program. However that recommendation was never implemented. Instead Canada would rely on the United States for nearly all its launches. With Canada’s current rocky relationship with the United States its become clear that the country must pivot and be more self-reliant, in particular in areas that are considered of national strategic importance.
Stream 1 – Three phases
The Challenge goal is to build “Canadian capacity and expertise in small-scale launch capabilities” which would be used as the foundation in developing a medium lift launch vehicle capable of delivering 4000 kg payloads to orbit.
There are three streams for the Challenge. The immediate and first stream, Stream 1, is Responsive Light Lift and is a three year challenge that “emphasizes speed, agility, and proof-of-concept” for a low Earth orbit launch by 2028. The funding for this initial stream is $105 million.
DND released the following table which shows notional funding allocations for year fiscal year.
2025-26 2026-27 2027-28 Total $25,000,000 $40,000,000 $40,000,000 $105,000,000
For Stream 1 companies will need to “deliver at least 200 kg payloads to LEO (~500 km altitude)” and “conduct a launch within 96 hours of receiving a formal notice.” Hence the name Responsive Light Lift. Also of note, any solution must use “International Traffic in Arms Regulations (ITAR)-free components and subsystems to maintain export flexibility and strengthen the domestic industrial base.”
DND notes that proposals may address one or more of the following focus areas:
- Launch vehicle design — propulsion, staging, avionics, and guidance solutions suitable for 200 kg class payloads;
- Rapid deployment and launch operations — mobile launch platforms, quick-connect payload interfaces, and automated ground support;
- Safety systems — integrated Flight Termination Systems (FTS), range safety, and telemetry;
- Propellant storage and handling — Canadian-compliant, environmentally safe, and field-deployable solutions;
- Infrastructure and logistics — minimal-footprint, mobile or modular ground systems;
- Reuse and scalability concepts — enabling cost reduction and higher launch cadence beyond IOC (Initial Operational Capability).
Stream 1 is divided into three phases.
In phase 1 which is this fiscal year, there will be up to three winners who will equally split the available $25 million. DND notes that “If 3 winners cannot be identified, the challenge will continue to the next stage only with one or two strong and strategically relevant solutions. The selected participants will then advance to Phase 2 for concept development and testing.”
The Challenge then moves on to phase 2 (2026-27) furthering the concept and allocates $40 million, once again divided equally but only up to two participants are selected.
For phase 3 “participants must submit final deliverables such as prototypes, demonstrations, or technical reports summarizing their progress and results. These deliverables will help assess progress and performance against pre-established criteria and will serve as a basis for determining the recipient(s) of the grand prize. The evaluation may consider factors like technical achievement, innovation and problem-solving, operational or strategic impact, scalability, and alignment with challenge objectives.”
The grand prize allocated in phase 3 is $40 million. DND says “Depending on the results, the grand prize may be awarded to a single top-performing project or divided among multiple participants demonstrating exceptional innovation and advancement towards the challenge objectives.”
Stream 2 & 3
Stream 2 is for medium lift capability and has a 10 year horizon. Presumably this stream would follow the successful completion of Stream 1.
As for stream 3 is focused on developing skills and the needed workforce for the long term and is coordinated with the other two stream.
Who can apply
DND says – The applicant must be a legal entity duly incorporated under Canadian federal or provincial law and validly existing in Canada, including:
- Canadian universities and educational institutions chartered in Canada.
- Incorporated Canadian not-for-profit organizations or associations.
- Incorporated Canadian for-profit companies, organizations, or associations.
- Canadian provincial/territorial, or municipal government organizations.
The Challenge is not open to federal departments, agencies, and crown corporations.
The deadline to apply is January 8, 2026, 12:00 pm ET.
Other funding
It should be noted that the federal budget allocated $182.6 million for sovereign space launch capability. With this Challenge having a total funding of $105 million we will see some other initiative announced.
This was hinted at the recent SpaceBound conference in Ottawa where Defence Minister David McGuinty said, “In Budget 2025, we are going further by investing $182.6 million to establish a sovereign space launch capability, giving us access to domestic spaceports. And to spark innovation and a little bit of competition, DRDC’s IDEaS program will soon be launching a space rocketry R&D challenge to push our innovators and entrepreneurs to conquer the next frontier.”
We now have the ‘Launch the North” IDEaS Challenge, next up would be an infrastructure initiative related to spaceports.
Who will apply?
There are clearly two companies which jump out at you right away, NordSpace and Reaction Dynamics (RDX). After that one could speculate that some people from of the Space Concordia university team might start a new commercial entity or join an existing company. There’s at last one other somewhat stealth company that was at the SpaceBound conference, and potentially one other wildcard in Space Engine Systems.