A coalition of economic development organizations in New Mexico, focused on growing the state's aerospace industry, is one step closer to landing up to $160 million almost a year after it missed out on a portion of U.S. Economic Development Administration dollars.
The New Mexico Space Valley Coalition — a joint effort between a mix of New Mexico government agencies, educational institutions, nonprofits and economic development organizations — on Wednesday announced it's been named one of 16 finalists in the U.S. National Science Foundation's Regional Innovation Engines program, which wants to give federal dollars to projects that would drive technology growth in different regions across the country.
If chosen as one of five awardees through the Engines program, the Space Valley Coalition would receive about $15 million total for two years and up to $160 million over a 10-year period, according to a release from the National Science Foundation (NSF). The Foundation plans to announce award winners this winter.
Each project in the NSF Engines program had to submit a proposal to the Foundation. The Space Valley Coalition's proposal is titled "Space for Earth, Space for All, Space Valley's Role in Securing America's Economic and Political Future" and highlights existing assets across New Mexico and Colorado's aerospace industries, per a Wednesday news release from the Coalition.
The five organizations that make up the Space Valley Coalition are:
- The City of Albuquerque, which joined the Coalition in February last year.
- Central New Mexico Community College, which led the Coalition's effort to land money through the U.S. Economic Development Administration last year.
- CNM Ingenuity, the job training and entrepreneurial development arm of Central New Mexico Community College.
- New Mexico International Trade Alliance, which led the proposal development for the NSF Engines program.
- NewSpace Nexus, a recently renamed nonprofit for the aerospace industry.
- New Mexico Spaceport Authority, the state-led body that oversees Spaceport America.
Because it's a National Science Foundation program, a major focus of the Coalition's proposal is technological research and development, said Randy Trask, president of the New Mexico Trade Alliance. That involves leveraging existing resources and partnerships in the two states to accelerate commercial space technologies, he said.
"The hope is that we can leverage strength in research and development in a way that you can create industry and a tech hub like you've seen in other parts of the country," Trask said. "There's a need for rapid innovation from our private sector in space research."
The Coalition formed in recent years to create what Trask called an "organized, strategic plan" for developing the region's aerospace industry. Federal dollars would "drastically improve our ability to have an impact" but wouldn't alter the Coalition's overall strategy going forward, he said.
There are a slew of projects in New Mexico the Coalition has highlighted under that plan. Those include an aerospace-focused venture fund and venture studio through CNM Ingenuity, an expansion of Q-Station and a $50 million, multi-use facility called the Space Valley Center that could be located in Downtown Albuquerque.
A $9 million Rocket Operations Facility at Spaceport America is another potential project featured under the Coalition.
"People like to think of space as its own domain," Trask said. "But space is like the internet. It impacts all sectors."
Although all current Coalition members are based in New Mexico, Casey DeRaad, the founder and CEO of NewSpace Nexus, hopes the namesake "space valley" can extend north through Colorado and south through Texas.
That's part of why NewSpace Nexus changed its name from NewSpace New Mexico earlier this year — to make clear the nonprofit's reach extends to aerospace companies across the country, not just in New Mexico, DeRaad wrote in a letter to Albuquerque Business First at the time.
A core part of NewSpace Nexus' work is talking with aerospace companies to determine how to meet their development needs best. Resources like high-tech, costly equipment and more workers are two clear needs NewSpace has heard, DeRaad said.
"We're always trying to figure out where those gaps and needs are and then find funding to fill those gaps," she added. "Any type of federal or state funding that can help do that will definitely help build up the region to be a leader in the space industry."
The Coalition was part of a bid for up to $100 million in federal funding through the U.S. Economic Development Administration (EDA) Build Back Better Regional Challenge last year. It made it through the first phase of that challenge — which provided the Coalition with $500,000 — but failed to reach the second phase.
Now, it's closer than ever to a bigger chunk of federal dollars. The next step on that path is a three-day site visit from a representative from the National Science Foundation in October to ask questions and understand the Coalition's strategy "more in-depth," Trask, the Trade Alliance's president, said.
If chosen, he said the Coalition would have to submit a follow-up proposal after the initial two-year period to continue receiving money at a clip of $15 million per year. That would allow the Coalition to "pivot," Trask said, by seeing what worked over the first two years and bringing in new stakeholders, for example.
And, he added, one of the factors NSF is paying attention to in selecting its award recipients is community support for each proposal.
"Since Robert Goddard's early rocket testing nearly a century ago, New Mexico has been a leader in space innovation," Trask said in a statement. "Our many government, private and academic space assets make us a logical choice for the U.S. to invest its next phase of major space tech innovation."
