AI-rewritten: This is a summary of an article from Ars Technica, rewritten by AI (Qwen, running locally) to make it easier to read. The facts come from the original article – read it for the full story.

---

Relations between the United States and Canada have become strained due to tariffs and political threats from the Trump Administration. In response, the Canadian government is reassessing its reliance on American companies for goods and services, including access to space. This spring, it awarded $8.33 million CAD to three firms—NordSpace, Reaction Dynamics, and Canada Rocket Company—to support rockets with "light lift" capability. However, Hugh Kolias, chief executive of the Toronto-based Canada Rocket Company, decided to skip this phase. He stated that consulting 150 engineers revealed that building a smaller rocket does not de-risk development because 90 percent of the work is discarded later anyway.

Instead, the company is developing the R-2 rocket, a medium-lift vehicle capable of carrying up to 12.5 metric tons to low-Earth orbit. It features nine methane-fueled engines and aims for first-stage reuse by 2032. Kolias noted that while the initial awards were modest, the government may eventually offer half a billion dollars for a sovereign launch capability with guaranteed contracts. The company has raised $22.5 million so far and plans to market a Series A fundraise.

To boost national pride amid geopolitical tension, Kolias named the company’s engine test facility after astronaut Jeremy Hansen, who recently flew into deep space on Artemis II. The $30 million Jeremy Hansen Test Facility will include up to three vertical and horizontal test stands capable of testing engines with over 225,000 pounds of thrust. While Hansen’s success raised Canada’s prestige, it was achieved using American technology. Kolias hopes this capability allows Canada to maintain warm relations while owning its own destiny in space.