Leaking ISS Sparks Urgency for New Space Stations

The International Space Station (ISS), now 26 years old, is facing significant safety concerns. Launched in 1998 with Russia’s Zarya module, the ISS consists of 43 modules and various tools. Six of the seven nations involved plan to retire the ISS after 2030, and Russia aims to exit by 2028. As a proactive measure, NASA has enlisted SpaceX to develop a deorbiting spacecraft to safely bring the ISS down after it serves its purpose, targeting 2031. Additionally, NASA is backing multiple companies to create new space stations to take the ISS’s place.

Ongoing Air Leaks Threaten ISS Operations

A report from NASA’s Office of Inspector General in September 2024 revealed troubling cracks and air leaks in the Zvezda Service Module Transfer Tunnel. These leaks, first noted in 2019, have escalated to a critical level—rated 5 out of 5 on the danger scale—at a loss of approximately 3.7 pounds of air each day. This situation is costing NASA over $4,000 daily, totaling about $1.6 million a year, which, while a small fraction of the ISS’s operational budget of $4.1 billion, is still significant.

Moreover, reports indicate four active leaks within the Russian sections of the ISS and a further 50 potential leak sites. Due to safety concerns, astronauts are advised to limit their activities to the American section and prepare for possible evacuation. Consequently, SpaceX is also working on a contingency plan to ensure the safety of American astronauts.

Implications for Investors and Future Opportunities

Investors should remain calm, as there are possible interim solutions, like sealing off the affected docking port. This could extend the ISS’s operational life until a replacement is ready. However, the leaks increase the urgency for NASA to choose companies to build new space stations. Currently, four teams are competitive:

• Privately held Vast Space and Axiom Space plan independent Low Earth Orbit stations.
• Blue Origin, Sierra Space, Boeing (NYSE: BA), and Redwire are collaborating on an “Orbital Reef” project.
• Voyager Space has partnered with Airbus (OTC: EADSY), Northrop Grumman (NYSE: NOC), Hilton Hotels (NYSE: HLT), and more to create “Starlab.”

Despite this competitive field, a recent article from space news site Ad Astra expressed skepticism regarding the viability of the teams’ timelines for launching new stations by 2030. Axiom Space in particular is facing financial challenges, having struggled to meet supplier payments and payroll obligations for its workforce of nearly 1,000 employees.

On a positive note, NASA plans to open a second round of bidding for private space station development contracts in 2025, with awards expected in 2026. The agency has already allocated over $500 million towards this venture, which should help sustain a couple of contenders while they develop designs and prototypes. This ongoing support presents an exciting opportunity for investors interested in participating in the future of U.S. space endeavors—an opportunity that was not available with the ISS.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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