According to Dan DeLong, XCOR Chief Engineer: "This is XCOR's first engine designed to run on liquid oxygen and kerosene. The initial tests are in the heat sink configuration, and we expect to develop it further into a regenerative cooled version." DeLong stated: "The XR-4K5 also uses our most recent electrical igniter design that is smaller and lighter than previous generations."

Jeff Greason, XCOR CEO said: "We are very excited about the new engine since it moves us closer to our goal of a reliable and economical vehicle for space tourism as well as educational and commercial uses.

"The more powerful engine and use of readily available and nontoxic fuels is a notable development in reliability and cost control of operating suborbital vehicles. XCOR is developing the XR-4K5 for future applications, including the propulsion system for the Xerus project."

The Xerus (pronunciation: zEr'us) project is part of a joint marketing agreement between XCOR Aerospace and Space Adventures, Ltd., that provides Space Adventures the first 600 flights to 62 miles (100 km) altitude aboard XCOR's Xerus sub-orbital vehicle, designed specifically for space tourist flights.

According to a recent study by the Futon Corp., a Bethesda, MD aerospace consulting firm, the space travel market could generate revenues of over $1 billion annually by 2021.

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