Cornwall is set to be home to Europe’s first 'horizontal launch' spaceport.
Cornwall Council will provide up to £12m funding for the scheme on top of up to £7.85m from the UK Space Agency.
A further £0.5m will come from the Cornwall and Isles of Scilly Local Enterprise Partnership.
It will allow Spaceport Cornwall and US launch operator Virgin Orbit, who are also investing £2.5m, to start launching small satellites in the early 2020s.
It could create 150 jobs and enable the UK to compete for a share of the global market for launching small satellites.
The funding is subject to business case and final approvals, including from Cornwall Council later this year.
Julian German, leader of Cornwall Council, said: 'Cornwall is the birthplace of innovation and technology and space is a key part of a 21st century economy.
'With assets like Spaceport Cornwall, world-class mission control facilities at Goonhilly Earth Station and superb digital connectivity, Cornwall can play a vital role in the growth of the global space economy.'