Reborn: Billionaire in College

The two concerns raised by the other party are quite practical and reasonable.

"I don't think I need to answer the first question. You two know the answer. The external environment is there, and the country is actually very anxious. As for the second question, please take a look at this."

As he spoke, Chen Pingjiang handed two documents that he had prepared long ago to Peng Xiaobo and He Guanghui.

Peng Xiaobo took it and glanced at the "Feasibility Report on Domestic Rockets".

After taking a quick look, Peng Xiaobo felt that Chen Pingjiang came well prepared and had obviously done his homework for the commercial space project.

This report is about twenty pages long and contains detailed content. It is not something that can be produced in a hurry.

"This is a feasibility report commissioned by a business consulting company half a year ago. The company conducted research in the Yangtze River Delta and Pearl River Delta for half a year and concluded that except for rocket engines, there are no problems with various supporting facilities in society. In the final analysis, our country has a very complete production and manufacturing system."

Chen Pingjiang was also very excited when he received this report.

The entire industrial chain of Dongda University is really amazing!
Of course, this report was not used to convince Peng Xiaobo and the others, but was mainly for the leaders to see.

"Mr. Chen, in your opinion, which route should commercial rockets take?" He Guanghui asked.

Chen Pingjiang smiled slightly. What the other party asked was a question that every rocket man and rocket company had to consider, a typical "solid-liquid" dispute.

Solid rocket engines have a simple structure and do not require complex internal structures, so their R&D costs are lower. Their cost is usually 1/10 to 1/20 of that of liquid rockets, but solid fuel propellants are inefficient and very expensive.

Liquid rockets work on the opposite principle. Liquid oxygen-kerosene or liquid oxygen-methane propellants are not only cheap but also in stable supply. However, their rocket engines are complex in structure, requiring sophisticated control systems and complex fuel tanks, and their R&D and maintenance costs are high.

So in fact, solid rockets are suitable for short-range missiles, small satellite launches, emergency launches and other scenarios, and are favored because of their simple structure, convenient launch and high thrust. Liquid rockets are suitable for large launch vehicles, deep space exploration and other tasks that require long-term work and thrust adjustment. They are more suitable for these tasks because of their high specific impulse and long working time.

It is worth mentioning that SpaceX, Blue Origin and other companies currently use liquid oxygen and methane as propellants.

In addition, solid rockets have a simple internal structure and expensive fuel, but they burn up the fuel every time they are launched, so it makes no sense to recover the rocket. Liquid rocket fuel is cheap, but the rocket itself is expensive, so it makes sense to recover it.

This doesn't mean that fixed rockets are no longer being made.

In fact, most of the rocket companies that have sprung up like mushrooms in China later adopted the approach of "from solid to liquid, from small to large, and solid and liquid simultaneously."

This is partly due to their helplessness. The development cycle of reusable rockets is long, and the domestic environment means that no capital is willing to accept long-term losses and investments.

Which CEO of a domestic startup company dares to say that he can put 200 million US dollars on the table to develop liquid rockets?

None! But these were not a problem for Chen Pingjiang, as he had plenty of money.

As a confidential field of national defense and military industry, aerospace is subject to strict policy control in all countries around the world. Private aerospace can only obtain investment from RMB funds. RMB funds are also affected by the A-share listing rules and have certain requirements for the net profit and operating income of enterprises.

Therefore, for a long time in the future, China's private space industry can only set sail with relatively little funding.

However, Chen Pingjiang’s opponent is not the domestic rocket companies, but Minister Ma’s SpaceX.

"Of course we have to walk on two legs. Liquid rockets must be developed from the beginning, and solid rockets must also be made. We can practice by launching fixed rockets and accumulate some launch experience. At least in the verification of some key technologies, there is not much difference between solid rockets and liquid rockets. From rocket design, to the transition to the production and manufacturing stage, and then to the launch site, these experiences are the same regardless of whether they are liquid rockets or solid rockets. I believe you two understand these better than me, an outsider." Chen Pingjiang answered without much thought.

Peng Xiaobo asked: "That would be a huge investment. Liquid rocket development takes a long time, and the results won't be seen in the short term. Are you ready?"

He Guanghui also said: "Fixed rocket engines can be purchased, which can greatly shorten the research and development cycle. The only problem is that considering that solid rockets are generally used in missiles, it is difficult for private enterprises to obtain the qualification for manufacturing pyrotechnics involved. In addition, policy adjustments have made it so that institutions within the system no longer sell solid engines to private companies. Liquid rockets do not involve the issue of pyrotechnic manufacturing qualifications."

Before Chen Pingjiang could answer, Peng Xiaobo took over He Guanghui's words and replied: "From the perspective of commercial profitability, I still suggest that solid rockets be the focus of early research and development. The satellite launch market can be divided into two parts. One part is high-orbit satellites, and the launch demand of these satellites is basically monopolized by SpaceX and the national team; the other part is medium and low-orbit satellites, which weigh less than 200 kilograms and have an annual launch volume of about 100 to 200 launches. This is the position where private rocket companies compete. Taking this part of the orders early and taking orders from the military, university research institutions and enterprises can quickly generate profits."

"Mr. Peng, I understand what you said. But satellite launch is a market of supply-side reform. When the cost of rocket transportation is greatly reduced, this market will undergo fundamental changes. Small rockets do not have the ability to form a satellite network, but large liquid rockets can complete this task in one go. The Starlink plan proposed by SpaceX last month, which is the low-orbit Internet constellation plan, must be carried out with liquid rockets."

Chen Pingjiang really didn't expect that these two colleagues would actually argue over solid and liquid rockets.

He listened with great interest.

Peng Xiaobo: "How can I not understand what you said? But we are running a business now, and we have to consider costs and revenues. What if we fail to accomplish it after a few years? How can we explain to Mr. Chen? Will Mr. Chen think that we are not good enough when he sees that we cannot produce results? Of course I know that liquid rockets are exclusive to large companies. But companies don't do that. The national team can ignore costs to ensure the success rate, but companies must maintain a natural motivation to reduce the cost of rocket launches."

He Guanghui glanced at Chen Pingjiang secretly and continued, "In the field of commercial spaceflight, one of the biggest differences between China and the United States is the demarcation of the boundary between commercial spaceflight and public welfare spaceflight. In the United States, commercial spaceflight and public welfare spaceflight are clearly separated. The former is uniformly handed over to private enterprises to achieve market-oriented operations; the latter is handed over to NASA, which is responsible for important tasks such as deep space exploration."

"But in China, what should the national team do when they have to try their own commercialization in addition to undertaking public welfare space missions? Competition in the field of small rockets is definitely fierce, and compared with the national team, the advantages of private rocket companies are not obvious. You all know that companies have to control costs, so isn't it the first choice for liquid rockets to develop a way to recycle them?"

Peng Xiaobo sneered: "You only see one side. I have studied it before. Solid rockets can also reduce costs. Use universal and standardized mature rocket components to minimize the need for customized parts. In addition, we can also learn from the ideas of Internet companies and adopt a rapid iteration method in research and development. Through prototypes, we can evaluate the main performance, thereby shortening the product development cycle and controlling the number and cost of experiments."

He Guanghui shook his head repeatedly: "Many of the supporting facilities of private rocket companies come from the national team. They have a complete industrial chain, various factories are well-equipped, and the wages of employees are low. Can you be cheaper than them?"

Chen Pingjiang watched the two brothers arguing without interrupting.

He finally realized that the two brothers were singing the same tune, so they were giving him a lesson?
He was telling himself indirectly how difficult the road to liquid rockets was, and was also testing his own determination and scale of investment.

Who says those doing scientific research don’t have active brains?
Chen Pingjiang thought it was all bullshit. (End of this chapter)