LMT - Blue Origin and United Launch Alliance face setback after rocket engine explosion

2023-07-11 15:58:04 ET

A Blue Origin ( BORGN ) rocket engine reportedly exploded during a test at the space company's facility in Texas on June 30.

Sources told CNBC the BE-4 engine detonated about 10 seconds into the test and damaged part of the test stand infrastructure.

The engine that exploded was expected to finish testing in July and then be shipped by Blue Origin to the United Launch Alliance for use on ULA’s second Vulcan rocket launch. ULA is the rocket-building 50-50 joint venture owned by Boeing ( BA ) and Lockheed Martin ( LMT ).

Blue Origin plans to keep testing engines at the West Texas site on a second stand built for the purpose. "We will be able to meet our engine delivery commitments this year and stay ahead of our customers' launch needs," noted a spokesperson. The pace of engine deliveries is critical after the Space Force assigned SpaceX ( SPACE ) and United Launch Alliance six missions each under the National Security Space Launch Phase 2 program. All six of ULA’s NSSL missions are set to fly on Vulcan.

Jeff Bezos is the founder of Blue Origin. Of course, he is also the founder and executive chairman of Amazon ( AMZN ), which is in the middle of its highly-anticipated Prime Day shopping event.

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