The Pentagon's primary satellite-launch provider announced plans Monday to develop a new rocket featuring some reusable engines, part of an effort to cut costs and compete with Elon Musk's Space Exploration Technology Corp.

United Launch Alliance LLC, a joint venture between Boeing Co. and Lockheed Martin Corp., is developing a new rocket for military and commercial use to reduce both launch prices and its controversial reliance on a Russian-made engine. The proposed booster also is intended to help in the escalating competition from SpaceX, as Mr. Musk's company is called, which is close to winning its long battle to start launching U.S. Air Force and spy satellites.

ULA's plans include reusing the rocket's main engines, which are the most expensive parts, by snaring them with a helicopter in midair as they fall with parachutes open toward Earth. Recovering them and recycling them for three or more launches would be one of the simplest ways to cut launch costs, according to ULA, which said the new missions would cost less than $100 million apiece.

SpaceX aims to cut costs by landing the first stage of its Falcon 9 rocket on a specially-designed barge floating in the Atlantic. SpaceX cancelled another attempt to land its booster on a barge Monday afternoon, due to weather problems. Two previous efforts have ended in failure.

ULA said catching the engines with a helicopter is cheaper than a controlled landing and places less stress on the equipment. It's explored a plan where the engines would separate from the rocket's fuel tanks high in the atmosphere after launch and be slowed with parachutes and other devices, releasing a line that a helicopter could then capture with a hook. A ULA study in 2008 identified the Sikorsky CH-53, which can carry a 36,000-pound load, as suitable for the task.

ULA outlined the recycling plan as it announced that its new U.S.-made engine would be called Vulcan, chosen in a contest that the company said attracted more than a million votes. The other contenders were Eagle, Freedom, Galaxy One and Zeus.

The joint venture has enjoyed a monopoly on military and intelligence satellite launches since 2006, but has been told by Congress to stop using the Russian-made RD-180 engines on its Atlas V rocket because of concerns that supplies could be cut off. ULA is retiring its Delta IV rocket to save money.

With the future of the Russian-made engine under threat, ULA last year turned to the new BE-4 engine being developed by Blue Origin LLC, a venture backed by Amazon.com Inc.'s Jeff Bezos. ULA said the BE-4 is designed to be reused.

The joint venture also is examining a separate engine being developed by Rancho Cordova, Calif.-based GenCorp Inc., and plans to choose between the two in 2016 or 2017. But ULA Chief Executive Tory Bruno said last month it would be 2022 or 2023 before a rocket with the new engine would be able to fly for the Pentagon.

Congress has told the Air Force to have two competing launch systems ready by 2019. Amid growing tension between the U.S. and Russia last year, Congress directed the Pentagon to explore developing one of them itself. Industry experts said this could cost $2 billion to $3 billion, including redesigning rockets around the new engine.

SpaceX hopes to have its Falcon 9 Heavy rocket available by 2018 to handle the biggest satellites at an average cost of $160 million a launch. The new rocket is due to fly for the first time later this year, and military officials have said it could be 2019 or 2020 before it is certified, though they didn't discount SpaceX meeting its timetable.

Write to Doug Cameron at doug.cameron@wsj.com

Access Investor Kit for The Boeing Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0970231058

Access Investor Kit for GenCorp, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US3686821006

Access Investor Kit for Lockheed Martin Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US5398301094

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Lockheed Martin Charts.
Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Lockheed Martin Charts.