A high-stakes agreement between SpaceX and the Bahamas to allow Falcon 9 rocket boosters to land in Bahamian waters has been put on hold following political tensions and environmental concerns.

The suspension came two months after the first and only booster landed off the Exuma coast — and just weeks after a Starship rocket exploded mid-flight, scattering debris on Bahamian islands.

“While no toxic materials were detected and no significant environmental impact was reported, the incident prompted a reevaluation of our engagement with SpaceX,” said Chequita Johnson, Acting Director General of the Civil Aviation Authority Bahamas.

Fast-tracked deal causes internal government friction

The original agreement, signed in February 2024 by Deputy Prime Minister Chester Cooper, was reportedly pushed through without consulting several key government ministers, according to two people familiar with the matter. 

Though no laws were broken, the move caused internal frustration.

SpaceX did not respond to requests for comment. Cooper also declined to answer questions about how the deal was arranged.

Starlink and financial incentives offered

In exchange for access to its territorial waters, the Bahamas received various incentives.

According to three sources, SpaceX offered complimentary Starlink internet terminals for the country’s defence vessels. The Bahamian military, which operates roughly a dozen vessels, did not comment on the arrangement, and the value of the deal was not disclosed.

Additionally, SpaceX pledged a $1 million donation to the University of the Bahamas and promised to host quarterly seminars on space and engineering. 

The company also agreed to pay $100,000 per booster landing under newly enacted Bahamian space regulations.

Environmental and sovereignty concerns emerge

The Starship explosion on 6 March during a test flight intensified public unease.

The rocket self-destructed nine and a half minutes after launching from Texas, and debris washed ashore on several Bahamian islands.

“I have no strong dislike for the exploration of space, but I do have concerns about the sovereignty of my nation’s airspace,” said Arana Pyfrom, Assistant Director at the Bahamas’ Department of Environmental Planning and Protection.

“The Starship explosion just strengthened opposition to make sure we could answer all these questions.”

Matthew Bastian, a retired Canadian engineer vacationing near Ragged Island, witnessed the Starship explosion from his sailboat.

“My initial reaction was ‘wow that is so cool,’ then reality hit me – I could have a huge chunk of rocket debris crash down on me and sink my boat!” he said.

“Fortunately, that didn’t happen, but one day it could happen to someone.”

SpaceX's response and recovery operation

Within days of the explosion, SpaceX deployed helicopters, speedboats, and sonar equipment to recover debris.

Locals said the wreckage was hauled from the sea and loaded onto a larger SpaceX vessel typically used to retrieve rocket fairings.

The company’s vice president of launch, Kiko Dontchev, reassured local reporters that Starship was entirely different from Falcon 9 boosters scheduled to land off the Exuma coast.

Joe Darville, chairman of environmental group Save The Bays, criticised both the fallout from the Starship explosion and the secretive nature of the Falcon 9 agreement.

“Something like that should have never been made without consultation of the people in the Bahamas,” he said.

What’s next for SpaceX in the Bahamas?

Bahamian officials are currently reviewing SpaceX’s environmental report and considering updates to the country’s space reentry regulations.

Two officials said Falcon 9 landings may resume later this summer if the revised processes are approved.

Pyfrom said the review aims to show “where we fell short, and what we need to improve on.”

Despite the diplomatic setback, SpaceX is pushing forward. Musk said earlier this month that the next Starship launch is expected within three weeks.

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