Oklahoma-based Rocketplane Kistler plans to launch its demonstration flight, to and from the International Space Station, in 2008. It stands to earn $207 million from the NASA grant.

California-based Space Exploration Technologies (SpaceX) plans to launch three tests flights in late 2008 and 2009 using its Falcon 9 rocket. The company stands to gain $278 million under the COTS program if it succeeds with its lofty goals.rnrn

SpaceX says the Falcon 1 rocket, currently under development, offers the lowest cost per orbital flight. It also says Falcon 5 and Falcon 9 will offer the cheapest cost per pound for an orbital payload.

SpaceX’s Dragon capsule is also configured to carry loads of cargo into orbit.

In March, SpaceX unsuccessfully tested its Falcon rocket. It was recently confirmed by U.S. government investigators that it was a fuel leak, not a design flaw that caused the failure. Left, you can see the fuel burning just after takeoff.

While the immediate goal of the COTS program is to resupply the International Space Station after the Space Shuttle is officially scrubbed, the long-term goal is to commercialize space travel. Project’s like Bigelow Aerospace’s space hotel will need launch vehicles to ferry passengers to and from the space complex.

SpaceX plans to carry as many as seven passengers aboard its Dragon capsule. The company will use Dragon as a vehicle for space tourists.

An artist’s drawing of Rocketplane’s cargo capsule preparing to dock with the space station.

Rocketplane Kistler’s launch and cargo vehicles will be built to be reusable. Photo 1 shows the engine section returning with parachutes. Photo 2 shows the nose section deploying parchachutes but it will also use inflatable balloons Photo 3 to bounce on the ground upon landing. Photo 4 shows early testing of the balloon landing.

Rocketplane Kistler’s goal–the International Space Station.

SpaceX also has big plans to rendevous with the International Space Station.