For a fully developed commercial space enterprise to come to life, the United States may have to look to the moon. 

Michael Griffin was NASA administrator from 2005 to 2009, appointed by George W. Bush. He led a NASA team in the advancement of space exploration. Griffin is now the chairman and CEO of Schafer Corporation, a leading provider in technology services in aerospace and national security in the private sector.

The development of space exploration in the hopes of advancing and helping society has been a common discussion point in space policy. Griffin said it is becoming more common for private businesses and investors to be more interested in space advancements because of the unique opportunities the universe has to offer.

Griffin said the main issue with the idea of private sectors funding these interests is how much the government should allow while still fulfilling the public interest.

On Thursday afternoon, inside a packed Alliant Energy-Lee Liu Auditorium in Howe Hall, Griffin presented two possible public policy initiatives that could encourage private development of space infrastructure on the open market.

One possible initiative Griffin presented focuses on crew and cargo resupply to the International Space Station(ISS). This is currently part of two programs at NASA under the Commercial Space Program.

The transportation of crew members is known as the Commercial Crew Program. NASA contracts the companies Boeing and SpaceX to manufacture a human transport system to get astronauts to the ISS in lower Earth orbit. Each company’s structure has to pass all NASA safety requirements, according to NASA’s website.

The website also explains that once the companies have made an approved transport system they keep ownership of it. The companies sell the transporting service to NASA, as well as to other customers, to make it more affordable.

Cargo is also transported in a similar way with companies SpaceX and Orbital ATK contracted. This is known as the Commercial Resupply Services.

Griffin said the cargo and crew market for the ISS is not sufficient enough by itself to drive the development of an operable commercial space transportation industry.

“You’re actually making less money on the space station market than you would on the open market selling satellite watches,” Griffin said.

Griffin said the issue of the non-space station business subsidizing the ISS business keeps the service from breaking the glass ceiling on commercial space enterprises. He said even if one enterprise had the entire market of cargo and crew the internal rate of return would be, at most, 25 percent. 

“Your business school professor is going to flunk you if you say invest,” Griffin said. “It flunks the Wall Street test of where rich people are going to put their money.”

Griffin said a much more attractive business venture is going to the surface of the moon. 

He believes that if the U.S. government, along with other international space partners, were to agree to build a research base on the moon, it would be much more profitable. It is about ten times harder to get to the surface of the moon than lower orbit, causing a higher rate, Griffin said.

“I’m a commercial company — I can charge you ten times the price,” Griffin said. “If I were still the administrator of NASA, I would not be able to argue that.”

Griffin also said there is less risk involved in lunar cargo transportation because there is no possibility of losing human life. He said if the lunar base were to reasonably grow at five percent annually for the first 15 years the internal rate of return would go up to 30 percent.

The establishment of a lunar base is what Griffin said will be the anchor of the commercial space enterprise market. The United States has expressed no intention of going back to the moon any time soon. 

“The decision not to return to the moon has consequences for our nation’s commercial space program,” Griffin said.