A court case in which an explosives engineer was accused of putting people at serious risk in a failed attempt to blast a rocket into space was dropped yesterday.

In an unusual prosecution, the Health and Safety executive decided after two hours of legal fireworks to drop charges against Alan Bullock, 52, who eventually agreed to accept cautions.

Now his dream of being the world's first privately-funded rocket to put a man in space and claim a $10m prize is in the balance.

Mr Bullock, of Wheldrake, near York, North Yorks, denied two charges brought under the Explosives Act.

Had the case against him not fizzled out, just like his 9ft-long amateur space rocket X2000, he faced the prospect of a fine of up to £25,000 if convicted.

After agreeing to two warnings at York Magistrates Court, Mr Bullock said: "I believe it is a fair outcome. I will have nothing on my record as a result of the HSE withdrawing the charges completely, and although there is a blemish there is no stain."

The HSE Explosives Inspectorate investigated a complaint following the launch of Mr Bullock's home-made rocket powered by a secret fuel from the North York moors in July last year. As a result, the space challenger was accused of manufacturing explosives at his home without a licence.

He was also alleged to have conducted the rocketeering in a way which placed people who did not work for him at risk, in that the explosives were not kept in a safe and suitable manner.

Mr Bullock, who was awarded costs, said his space programme was now on hold as a result of the prosecution.

But he has not totally abandoned the idea of beating the British height record of 17,000ft, and then putting a man into space to claim the $10m prize put up by an American credit card company