[AR] Re: 500,000 tons per year to GEO (off topic)

  • From: Henry Vanderbilt <hvanderbilt@xxxxxxxxxxxxxx>
  • To: arocket@xxxxxxxxxxxxx
  • Date: Thu, 03 Apr 2014 11:34:39 -0700

Bill,

Thanks for clarifying. You make a good argument that a lot of things would have to go remarkably well for a first-gen reusable like F9 to get down to the low hundreds cost per pound to LEO.

My take on the matter is that it doesn't have to get there - all it needs to do is get down somewhere near whatever the actual current-dollars CSTS tipping point is. Even a near-miss will probably do - life is not purely market-driven, and if Elon & Co get close enough on their first try to break even my suspicion is they'll make the additional investment to go the rest of the way. Quite possibly as incremental improvements to the existing system, something they've already demonstrated ability and willingness to do.

(An additional factor motivating them to invest: Reusability has had practical utility for SpaceX since long before they actually got practically close to demonstrating it, as a way of inspiring FUD among the competition.)

As for cutting stage-production labor and plant, if reusability is introduced as a way to avoid the need for further labor and plant expansion in the first place, then it's a win on that point. I can't say for sure that SpaceX's timing is actually working out that way, but it doesn't seem entirely implausible at this point. And depending on how hard the production crew might be (over)worked at the higher production rates, the reliability effect can be positive at lower production rates. A number of launch losses over the years have seemed to me traceable to some mix of boredom and overwork on the part of the staff, FWIW.

And as for how many reliable flights they may get out of an F9 stage without major inspection/teardown/rebuild, well, I expect we can agree that will be a really interesting question to watch. They reportedly say they've been designing for it - I'm looking forward to seeing the marketing-versus-real ratio in that, and also to seeing how well the real aspects get implemented. Both how well they designed for reuse in the first place, and how well they react to problems that arise.

As I mentioned yesterday, the last couple years have taught me to be careful about betting against SpaceX on specific announced near-term technical ambitions. Interesting times.

Henry

On 4/2/2014 10:29 PM, Bill Claybaugh wrote:
Henry:

See below:

Sent from my iPhone

On Apr 2, 2014, at 21:30, Henry Vanderbilt <hvanderbilt@xxxxxxxxxxxxxx> wrote:

On 4/2/2014 12:53 PM, Bill Claybaugh wrote:
Please.

Landing the first stage downrange uses 15% of the payload; flying it
back up range cost 30% of payload.  Even if refurbishing and relaunch
were free, propulsive fly back will take four launches just to cost
the same as expending. Since they are not free, it is more likely to
take something between 12-24 launches for this system to cost exactly
the same as the expendable version.

Bill - The premises behind your math here are not clear to me.  Could you 
elaborate a bit?

Take a simple case where reuse "costs" 50% of payload.  Then, if refurbishment 
cost is zero and relaunch costs exactly as much as the expendable version, it takes twice 
as many launches of the reusable version to make the cost of the reusable equal to the 
cost of the expendable version.

Still ignoring refurbishment, if we want the reusable version to price at half 
the price of the expendable version, it follows that it must fly (have an 
economic lifetime of) four times (uses).

If we want it to get to 1/10th the price of the expendable version (say, $250 
per pound) the we need 20 flights.

Now if refurbishment costs are very low--and Falcon 9 is in some ways a highly 
operable vehicle--we might need another 10%; say 22 flights per vehicle.

But if refurbishment is costly (say 50%), then we could be looking at 40 
flights to meet that price goal.

If you redo this for a rocket back first stage, you find that only near zero 
refurbishment can get you $1000 per pound at the five-six mission lifetime that 
the hardware might tolerate. If refurbishment is more costly (as a percentage 
of the cost of a new stage) the economic lifetime for just breaking even with 
the expendable quickly runs up to a dozen flights or more. Then add the risk 
that the hardware is not going to tolerate even five uses.

Finally, it is unlikely that the two kinds of stages have the same launch 
costs; the greater complexity of the reusable stages must impose some 
additional launch processing costs.  Add another 5% for that effect?

This also means that production rates will drop and so those cost
will go up.

Leaving aside refurbishment/reuse costs, the cost multiplier for lower 
first-stage production rates would have to equal the number of stage uses 
before reuse failed to reduce cost per launch.  IE, if they fly each stage 
twice, as long as each new stage costs less than double at the reduced 
production rate, they're still ahead.  Three flights, each stage only has to 
cost less than triple at reduced production, and so on.

The issue here is that unless labor and plant are cut, overhead costs go up; 
this effects the entire production line, reusable and expendable.  There is 
also a reliability effect, btw.


Yes, refurbishment/reuse costs can't be ignored.  But lower stage production 
rates really doesn't look like a show-stopper.


And then there's the customers who want to know why they should fly
on a used rocket....

I believe I've seen Elon address this somewhere - the gist was, he understands 
NASA will probably insist on new stages; other customers will likely be more 
flexible.  The implication is discounts for used stages.  I'd expect that the 
first few flights on used F9R's will go for major discounts.  Presumably once 
the actual degree of reliability loss involved is demonstrated, the discount 
would be adjusted appropriately.


Understood; the question is where the lower cost that allows the discounted 
pricing is coming from: the implied refurbishment cost is near zero unless 
these originally-designed-to-be-expendable stages can somehow tolerate a dozen 
or so flyback missions.

Bill


$100 per pound is not achievable with this system.

I do tend to agree.  I'd be quite surprised if F9 stages turn out to be 
reliably reusable without major rework more than a handful of times. Even so, 
if CSTS wasn't totally wrong about market elasticity, I see a reasonable chance 
SpaceX can bring their F9 per-lb costs down into the high-to-mid three figures. 
 Which I would expect will then be revolutionary enough, as that demonstrated 
growing market makes new investment in further cost reductions sensible rather 
than visionary.

Henry


Bill

Sent from my iPhone

On Apr 2, 2014, at 10:49, marsbeyond@xxxxxxxxx wrote:

Kieth,

When is Skylon supposed to fly? In less than two years, SpaceX will
be using propulsive recovery to re-use the first stage, second
stage, and capsule, and their cost to LEO will drop to $100 a
pound!

Sent from my iPhone

On Apr 2, 2014, at 9:27 AM, Keith Henson <hkeithhenson@xxxxxxxxx>
wrote:

http://theenergycollective.com/keith-henson/362181/dollar-gallon-gasoline
$350 million committed so far to the Skylon engines.

Keith




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