Space Agency Awards Contracts for LEO Cargo Vehicles: Startup and Established Aerospace Company to Develop Innovative Spacecraft for Low-Earth Orbit Trips

BERLIN, GERMANY – The European Space Agency has recently awarded initial contracts to a German-based startup and an established aerospace company to develop spacecraft designed to transport cargo to and from space stations in low-Earth orbit.

The two contracts, totaling 25 million euros each, were announced on May 22 by the ESA. The Exploration Company, operating in France and Germany, and Thales Alenia Space from Italy were selected over four other companies to receive funding through the LEO Cargo Return Service program.

Over the next two years, until June 2026, The Exploration Company and Thales Alenia Space will work on refining their concepts, advancing technologies, and meeting the requirements for their cargo vehicles. The second phase of the program, which includes a round-trip demonstration flight to the International Space Station (ISS) in 2028, will see new contracts awarded by ESA.

Both companies are aiming to demonstrate their capabilities in the coming years. The Exploration Company plans to launch its Nyx cargo transporter to the space station by 2027, while Thales Alenia Space is targeting a demonstration mission by the end of 2028. The Exploration Company will utilize a sub-scale reentry vehicle on the inaugural flight of the European Ariane 6 rocket in July. On the other hand, Thales Alenia Space, although lacking experience in building reentry crafts, has previously supplied pressure shells for various ISS modules.

Key requirements set by ESA for the European cargo vehicles include the capacity to deliver 4 metric tons of equipment to low-Earth orbit and return 2 metric tons back to Earth.

The selection process was competitive, with only The Exploration Company and Thales Alenia Space meeting the criteria set by ESA. Samantha Cristoforetti, the ESA astronaut leading the procurement effort, explained that the chosen companies presented the most suitable combination of work plans and financing schemes for the project.

At a meeting in Seville, Spain, last November, ESA member states agreed to prioritize the LEO Cargo Return Service program, signifying a commitment to further investment. The initial 25 million euro contracts are seen as a partial commitment, with ESA planning to seek additional funding from its member states to sustain the program through the demonstration flights to the ISS.

Despite facing challenges in aligning ESA’s budget with the rapidly evolving space industry, Director General Josef Aschbacher remains steadfast in his goal to accelerate ESA’s presence on the space station by 2028. The agency’s willingness to adapt to a more commercial model for space activities signals a shift towards a more agile approach to space exploration.