The UK government has announced investment of £30m in SaxaVord Spaceport in Shetland as part of a new national space strategy.

A spaceport spokesperson said the funding was a “hugely significant” vote of confidence and would unlock a further £30m of private investment.

Several companies hope to use SaxaVord in Unst, the northernmost point in the UK, as a launch site for small commercial rockets.

A government spokesperson said space was “an increasingly important domain” for keeping the country safe.

SaxaVord is the UK’s first fully-licensed spaceport and has regulatory approval for up to 30 rocket launches a year.

The company said the £60m public-private investment package would be used to design and build a second hangar and two more launchpads.

Chief executive officer Scott Hammond said the funding would take the company to the next stage of its development.

“We are building the spaceport for the thousandth as much as the first launch,” he said.

“We’re trying to create a successful, safe and sustainable business. This is direct investment into Shetland.”

Two German companies have signed launch agreements with the spaceport.

Rocket Factory Augsburg (RFA) is working towards its first vertical orbital test flight from UK soil. In August, SaxaVord paused plans for a test launch after RFA said it had “encountered an issue”.

A five-week “launch window” had been due to begin, with temporary traffic restrictions introduced in the event of a flight attempt.

A second company, HyImpulse Technologies GmbH (HyImpulse), plans the second flight of its SR75 suborbital launch vehicle from Shetland this year.

The German firm recently secured investment of more than €50m (£43m).

Derek Harris, head of programmes at Space Scotland, said he was not concerned about the timescale of the launch, adding that the £30m investment was a “good starter”.

“The technology is difficult to master but you would prefer it to be there and be reliable so if the timescale slips into next year, I do not see that as a failure,” he told BBC Radio Scotland Breakfast.

“I see that as a very well-maintained programme to make sure health and safety and reliability are at the forefront.”

Harris said rain and storms could also impact the process and it was important to remain open minded.

He added: “It will take time and a lot of money but once it launches, the benefits it unlocks for Scotland and the UK will be amazing.”

SaxaVord Spaceport has confirmed that it is in discussions with other companies.

The UK government said the new space strategy would “drive growth, strengthen security and back the technologies that underpin modern life”.

Ministers said they wanted to create jobs and help Britain and its partners launch satellites without relying on countries “further afield”.

The money for the Shetland project is part of a £148m investment across Europe which ministers said would help UK space technology firms secure more work.

Scottish Secretary Douglas Alexander said: “Scotland already builds more satellites than anywhere else in Europe, and with a £30m UK government investment boost, SaxaVord is now poised to deliver up to three-quarters of the continent’s orbital launch slots.”

He added that defence, security and economic growth were at the heart of the plan.

Lise Kaae, chief executive of Heartland, which has a majority stake in SaxaVord Spaceport through its investment arm Wild Ventures, said: “We are very pleased to welcome the UK government as an investor and partner.”

The investment is subject to due diligence and final sign-off.