The U.S. commercial space transportation industry celebrated its 10th anniversary this year and is looking at a bright future—a future Beal plans to dominate.

   The recent boom in satellite-based telecommunications has sent the demand for launch vehicles soaring. Earth imaging and weather tracking are already big business. New space-based technologies such as CD-quality radio transmission are in development, and they will need launch services, further increasing demand.

   “This is a very, very young industry, and the potential for growth is huge,” says Marco Caceres, space analyst at the Teal Group, a Fairfax-based consulting firm for the aerospace and defense industries. He predicts there will be 850-900 space launches that will generate $49.5 billion in business between 2000 and 2009.

   1998 was the single biggest year yet for the domestic space industry, with 22 commercial launches. The FAA—which licenses all rockets and rocket launches from U.S. territory and all launches by U.S.-based companies—expects the industry to match or exceed that number in 2000. Only three companies—Boeing, Lockheed Martin, and Orbital Services—currently have FAA approval to conduct commercial space launches.

   That leaves a lot of room for competition, and Beal is ready to rumble.

   His weapon of choice is the BA-2, a three-stage, 200-foot-tall rocket with a 25-foot-tall, 20-foot-diameter payload compartment. For the aerospace uninitiated—that’s a big rocket that can boost a lot of hardware into space. And the bigger the payload, the bigger the payoff.

   Beal believes the BA-2 will blast him past any competitors, leaving them eating his rocket fuel fumes. Beal is going back to an old concept, namely, using hydrogen peroxide and kerosene to fuel his rockets. When the hydrogen peroxide oxidizes, it ignites the kerosene, so Beal is able to eliminate the cost of developing and producing an ignition system for his rocket. An environment-friendly fringe benefit is that hydrogen peroxide breaks down into hydrogen and water.

   He scrapped plans for a smaller rocket (which would lift smaller payloads) in favor of the BA-2 when he became convinced the market will need the bigger rocket by the time he is ready to launch in about two years.

   It’s not the first time Beal has altered his plans for Beal Aero-space. Originally, he envisioned starting a satellite company. In 1995 he was presiding over a very profitable  bank when he read an article about the growing satellite business. As a self-described space buff, he was intrigued. But the process and cost of getting a satellite into orbit was daunting.

   Hmmmm, the cost of getting a satellite into orbit. The cost of getting a satellite into orbit...

   The ember of an idea sparked by that solitary magazine article flashed into the blaze that doesn’t drive Beal so much as lures him, entices him—and, by proxy, kindles enthusiasm in those around him.

   So what that the market is dominated by Lockheed and Boeing? “Andy relishes the opportunity to compete against the entrenched players,” says Beal’s friend, Brad Oates, vice chairman of Bluebonnet Savings and Loan.