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At least one start-up space company is finally getting off the ground. SpaceX, the company founded by Internet entrepreneur Elon Musk, had its first successful test launch last fall, and late last night it followed up with its first commercial space shot. The company’s Falcon 1 rocket took off from an atoll in the Marshall Islands and launched a Malaysian satellite into orbit. The spacecraft has black-and-white and color cameras to take high-resolution pictures of agricultural lands, forests, urban centers and other targets in Malaysia for commercial and government customers [Reuters].

The achievement is an important validation for SpaceX, which had three launch failures before getting its first test rocket into orbit in September 2008. Last year, SpaceX won a contract to supply the International Space Station after the shuttle retires, and this launch stands as the first physical proof that SpaceX can get the job done. To further develop their space delivery capability, SpaceX plans to follow this launch up later in the year with a launch of their larger rocket, Falcon 9 [Popular Science]. That rocket will be capable of carrying a cargo vehicle, called Dragon, to the low-Earth orbit where the space station resides.

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In a vote of confidence for the fledgling commercial space industry, NASA has awarded contracts that could total $3.5 billion to two companies that plan to build rockets and ferry supplies to the International Space Station. The companies, SpaceX and Orbital Sciences Corporation, could begin launches as soon as 2010 to help fill the gap between the space shuttle’s expected retirement and the introduction of NASA’s next-generation rocket, the Ares I. The companies beat out traditional NASA contractors like Boeing and Lockheed Martin to snag the contracts.

Experts say that giving a contract to the young company SpaceX is a particularly bold bet. SpaceX, the plan’s linchpin because it is intended to begin the service, carries a relatively short pedigree as a government contractor and can point to only one successful launch, after three failures, of a smaller version of its Falcon rocket intended to supply the space station. Orbital Sciences is an established, midsize aerospace contractor but lacks a proven track record for the revamped version of the Taurus rocket it will use to supply the station [The Wall Street Journal, subscription required].

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The private space company Space Exploration Technologies, or SpaceX, successfully launched a rocket into orbit on Sunday, marking a major milestone in the growth of privately funded space ventures. The achievement followed three failed launches of the Falcon 1 rocket over the past two years.

“That was frickin’ awesome,” Elon Musk, SpaceX’s millionaire founder and chief executive officer, told cheering employees…. “There were a lot of people who thought we couldn’t do it … but, you know, as the saying goes, ‘The fourth time’s the charm,’” he said after the rocket soared into orbit from its launch pad on Omelek Island, 2,500 miles (4,000 kilometers) southwest of Hawaii in the Pacific Ocean [MSNBC].

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In a strange side effect of Russia’s invasion of Georgia this weekend, the U.S. may lose access to Russia’s Soyuz spacecrafts that were expected to ferry NASA astronauts to the International Space Station after the retirement of the space shuttle fleet in 2010. Florida Senator Bill Nelson says that because of Russia’s new aggression, the U.S. Congress may refuse to pass an exemption required to let NASA buy services from Russia.

Under a law known as the Iran Non-Proliferation Act, the United States is banned from buying space technology from Russia unless the president determines Russia is taking steps to prevent the proliferation of nuclear and missile technology to Iran. Congress waived the ban in 2005, allowing NASA to enter into a $719 million contract with the Russians for use of the Soyuz through 2011 [CNN]. But an extension of the waiver needs to be passed to guarantee access to the Space Station after 2011.

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In a major disappointment for the young industry of commercial space flight, one of the leading companies, SpaceX, failed to send its rocket into orbit in a test flight on Saturday. The company said the spacecraft, the Falcon 1, had a successful liftoff, but went astray about two minutes into its flight when the main cargo-carrying component failed to separate from the booster rocket. It was the third successive launch failure for the company: The first Falcon 1 launch, in March 2006, failed about a minute into its ascent because of a fuel line leak. A second rocket, launched in March 2007, made it to space but was lost about five minutes after launching [The New York Times].

The malfunction casts doubts on the ability of private space companies to provide transport services for NASA during the five years between the retirement of the space shuttle fleet and the completion of NASA’s next generation rocket system, which is not expected to be ready until 2015. NASA has invested hundreds of millions of taxpayer dollars as part of a partnership with SpaceX to develop the first commercially-operated rocket designed to take cargo to the space station. If SpaceX can’t execute a successful launch soon, those plans could start to fall apart, prompting Congress and the government to re-evaluate SpaceX’s ability to play a major role in space [Orlando Sentinel].

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