The reference to fire wasn't just as a technology path, but about the energy requirements to lift a heavy object out of a planet's gravity well. A controlled explosion in a rocket motor is a very high energy reaction. I don't know how you'd do that in a water environment. Maybe a 100% aquatic species could build rockets after discovering nuclear tech, with steam-powered rockets?
Or since this is science fiction, maybe they they've been around long enough as a technological civilization to invent anti-gravity propulsion.
Umm...liquid hydrogen is the standard rocket fuel used by NASA? Which can be easily created through electrolysis. An ocean world provides essentially an unlimited fuel source for an early space faring civ...
And furthermore just Google "Sea Dragon rocket" or "Aquarius rocket" and you can see that humans have already speculated on a process for launching rockets from the ocean
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