The UK's Civil Aviation Authority (CAA) said it had granted a launch licence to Rocket Factory Augsburg (RFA), allowing it to send a rocket into space from SaxaVord Spaceport in Scotland's Shetland Islands.

"This is a new era for aerospace and granting the first vertical launch licence from UK soil builds towards a historic milestone for the nation," said CAA CEO Rob Bishton.

"This licence is the culmination of extensive hard work behind the scenes to put appropriate safety and environmental measures in place before launch," he added.

It is the final large regulatory step allowing Rocket Factory Augsburg (RFA) to launch from on Unst, the most northerly of the Shetland Islands.

Jorn Spurmann, co-founder and chief commercial officer of RFA, called it a "groundbreaking moment for RFA and for Europe's space industry.

"Securing the first-ever launch license outside European Space Agency's established site in Kourou (French Guiana) is not just a regulatory milestone -- it's a powerful endorsement of our technical excellence and a turning point for European space innovation," he added.

"By enabling cost-effective and flexible launches from European main land, we are laying the foundation for a new era of space exploration and commercialization, ensuring Europe remains at the forefront of the global space race," he added.

The CAA had already granted the privately-owned SaxaVord a spaceport licence and a range control licence.

RFA hopes to carry out the first test flight of its 30 metre-tall (100 feet) three-stage rocket, which can deliver a 1,300kg payload into orbit, in 2025.

The first stage of the initial rocket caught fire and exploded during a static fire test last year, pushing back plans for a 2024 launch.