Australia has welcomed the first major spacecraft return of the year with national space capability continuing its rapid ascent. 

Overnight, Southern Launch successfully supported the orbital re‑entry of Varda Space Industries’ W‑5 capsule. The spacecraft safely landed at the Koonibba Test Range in regional South Australia.

The mission proved to be a platform to process pharmaceuticals and conduct other microgravity research as well as a milestone for a heat shield experiment for NASA and the American space industry.

“Every spacecraft return strengthens Australia’s reputation as a trusted global destination for safe, reliable orbital re‑entries.

The W‑5 mission reinforces our ongoing collaboration with Varda and highlights just how much capability, and awe, we can deliver right here in South Australia.”

~ Llyod Damp, CEO, Southern Launch

Expand Varda’s spacecraft, W-5

The Varda Space Industries W-5 capsule returned to Earth in Koonibba in South Australia on 30 January 2026, with the protection of a heat shield made of C-PICA, a cutting-edge material licensed from NASA and manufactured by Varda. 

The capsule’s successful return marks the first time a capsule protected entirely by Varda-made C-PICA has come back to Earth.

Image credit: William Godward

Expand Varda Space Industries recovery lead Brandon Amat securing the W-5 capsule. Photo by William Godward

Varda Space Industries recovery lead Brandon Amat securing the W-5 capsule at Southern Launch's Koonibba Test Range. 

Image credit: William Godward

Expand Varda Space Industries recovery lead Brandon Amat securing the W-5 capsule. Photo by William Godward

Varda Space Industries recovery lead Brandon Amat securing the W-5 capsule at Southern Launch's Koonibba Test Range. 

Image credit: William Godward

Supporting a thriving orbital economy

Today's landing marks Varda’s latest step in advancing in‑orbit research and manufacturing, but also highlights Australia's role in a thriving orbital economy. 

The company's latest space return follows the signing of a landmark agreement between Southern Launch and Varda Space Industries at the International Astronautical Congress 2025. Their deal will now see 19 more Varda return missions to the Koonibba Test Range — a transformational boost for sovereign capability and regional innovation.

“W-5 reinforces the advantage of building the integrated system in-house. By owning the spacecraft, the capsule, and the mission operations end-to-end, we can iterate faster, fly more often, and reliably bring complex manufacturing processes back to Earth."

~ Nick Cialdella, CTO, Varda Space Industries.

The spacecraft carried with it to orbit and back advanced pharmaceuticals, novel technologies, and scientific payloads with applications from industry and government agencies as well as a unique heat shield capability. 

W-5 had a layer of cutting-edge material licensed from NASA and manufactured by Varda. The material, known as C-PICA (Conformal Phenolic Impregnated Carbon Ablator), provided a stronger, less expensive, and more efficient thermal protection coating to the capsule, allowing it – and its valuable contents – to return to Earth safely.  

"Heat shields allow us to bring the benefits of work done in space, including medical research, technology development, and scientific discovery, down to Earth to improve our everyday lives."

~ Greg Stover, Associate Administrator (Acting), Space Technology Mission Directorate

The W-5 achievement follows another major success at Koonibba late last year with the first launch of AtSpace’s A01 rocket, a locally built vehicle that completed its maiden flight and validated its cutting‑edge hybrid propulsion system.

As Australia’s space sector continues to surge, missions like W‑5 demonstrate the nation’s readiness to support the next era of space innovation — from launch to landing, and everything in between.

The latest from the Australian space sector

Main image credit: William Godward.

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