5. SPS SALVAGE VALUE 5.1 SPS Demonstration Satellite Salvage Value Section 3 developed the salvage value for the demonstration satellite that will result from its use as part of a full-scale operational SPS satellite, as a source of power for non-SPS space activities, as a power supply for a laser orbit-to-orbit transportation system and as a source of space-based materials. These applications of the demonstration satellite are summarized in Figure 5.1 which indicates their relative timing and salvage value. The laser orbit-to-orbit transportation system utilizes the demonstration satellite as a power source for a laser space transportation system. The microwave power transmission system is not needed in this salvage use and is thus available for use by the first full-scale SPS satellite. The salvage value derives primarily from cost savings in the cost of transporting chemical propellants from earth to LEO for use in LEO to GEO transportation of personnel and logistics. The considerably higher specific impulse of a laser rocket permits about a 70 percent reduction in the mass of propellant that must be transported to LEO compared to chemical rockets. The value of the demonstration satellite when used in this manner is in excess of $1.7 billion. If the demonstration program is successful, that is if it is found desirable to continue the SPS program beyond the demonstration phase, the demonstration satellite can be used as a component of the first full-scale SPS satellite. In this application the demonstration satellite has a salvage value of slightly less than $1.7 billion.
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