---
title: "Paper: The Business Case for Lunar Ice Mining (2021)"
id: 68884
type: "post"
slug: "paper-the-business-case-for-lunar-ice-mining-2021"
author: "NSE"
published: "2024-02-08T05:00:00+00:00"
modified: "2024-02-08T05:15:40+00:00"
canonical: "https://newspaceeconomy.ca/2024/02/08/paper-the-business-case-for-lunar-ice-mining-2021/"
markdown_url: "https://newspaceeconomy.ca/2024/02/08/paper-the-business-case-for-lunar-ice-mining-2021.md"
description: "The paper examines the feasibility of a private company mining lunar ice using a \"thermal mining\" technique and selling the propellant."
language: "en-US"
category:
  - "Earth"
  - "Industry Reports, Papers And E-books"
  - "Launch Market"
  - "Mars"
  - "Moon"
  - "Space Economy"
  - "Space Exploration"
  - "Space Logistics"
  - "Spacecraft Systems: Space Segment"
  - "Upstream Market"
post_tag:
  - "Business"
  - "Commercial Market"
  - "Craters"
  - "Entrepreneurs"
  - "Lunar"
  - "NASA"
  - "Satellites"
  - "Science"
---

# Paper: The Business Case for Lunar Ice Mining (2021)

![](https://i0.wp.com/newspaceeconomy.ca/wp-content/uploads/2023/12/img_7130-2-1.jpg?resize=696%2C965&ssl=1)

[Download document](https://www.liebertpub.com/doi/pdf/10.1089/space.2020.0045?download=true)

## Synopsis

Here is a summary of the key points from the paper:

### Overview

- Mining lunar ice and processing it into rocket propellant could enable profitable commercial space activities and support expanded space exploration.
- Search

### Thermal Mining Technique

- Involves using reflected sunlight to heat and sublime surface lunar ice inside permanently shadowed craters near the moon’s poles.
- The water vapor is captured and hauled to a processing plant which purifies and electrolyzes it into liquid hydrogen and oxygen propellant.
- Estimated to have much lower mass and complexity than traditional excavation techniques.

### Market and Pricing

- Near term market is commercial satellites to geosynchronous orbit, [NASA](https://www.nasa.gov/) science missions, and eventual lunar missions. Mars missions also represent significant potential demand.
- Pricing model shows large cost savings over launching propellant from Earth. For example, propellant priced at $500/kg on lunar surface reduces Earth to lunar surface launches by a factor of 3.

### Business Case Scenarios

- Examines commercial-only case and public-private partnership models with [NASA](https://www.nasa.gov/).
- Positive rate of returns in all scenarios, enhanced by [NASA](https://www.nasa.gov/)’s involvement.
- Availability of propellant expected to enable other commercial space activities by greatly reducing transportation costs.

### Comparison to Other Studies

- Significantly lower estimated propellant pricing than previous NASA and academic studies.
- Main factors are: efficiency of thermal mining technique, use of emerging commercial launch systems, and public-private partnership approach.

### Conclusions

- Lunar propellant production could be the first profitable in-space commercial activity and dramatically reduce costs for space transportation and exploration.