At 22.42 CEST, the company announced that an "anomaly" had destroyed the first stage of the RFA ONE rocket. Footage of the incident shows the engine sending a fireball into the night sky.
RFA said no-one was injured in the incident and the launch pad was saved. The company will now investigate the cause of the explosion.
SaxaVord has also sought to allay concerns. "All safety protocols were fully observed and the site evacuated prior to the test, meaning no RFA or SaxaVord personnel were at risk," the company said.
"The site offering the maximum payload mass to orbit is SaxaVord in the Shetlands, from where direct launch is possible to both SSO [sun-synchronous orbits] and polar orbits," the agency said.
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