SaxaVord Spaceport has confirmed that it is in discussions with other companies.
The UK government said the new space strategy would “drive growth, strengthen security and back the technologies that underpin modern life”.
Ministers said they wanted to create jobs and help Britain and its partners launch satellites without relying on countries “further afield”.
The money for the Shetland project is part of a £148m investment across Europe which ministers said would help UK space technology firms secure more work.
Scottish Secretary Douglas Alexander said: “Scotland already builds more satellites than anywhere else in Europe, and with a £30m UK government investment boost, SaxaVord is now poised to deliver up to three-quarters of the continent’s orbital launch slots.”
He added that defence, security and economic growth were at the heart of the plan.
Lise Kaae, chief executive of Heartland, which has a majority stake in SaxaVord Spaceport through its investment arm Wild Ventures, said: “We are very pleased to welcome the UK government as an investor and partner.”
The investment is subject to due diligence and final sign-off.
