The European Space Agency (ESA) has announced the preselection of five launch vehicle startups for its European Launcher Challenge. These companies – Isar Aerospace, MaiaSpace, Orbex, PLD Space, and Rocket Factory Augsburg (RFA) – are now eligible for contracts totaling up to €169 million ($198 million) each. This funding, however, is contingent upon decisions by ESA member states at their ministerial conference in November.
ESA’s selection process prioritized “technical maturity, business maturity and sustainability, institutional market planned to be served as well as compliance to procurement rules.” Twelve proposals were initially received. Notably, none of the selected companies have yet achieved orbital launch, though Isar Aerospace attempted a launch in March, which experienced an attitude control failure.
PLD Space successfully completed a suborbital test flight of its Miura 1 rocket in October 2023. RFA, meanwhile, suffered a setback when a static-fire test destroyed the first stage of its RFA ONE rocket in August 2024. Despite this, RFA stated in a social media post: “This is a major milestone for us – and a strong vote of confidence in our technical roadmap, commercial strength, and long-term vision.”
PLD Space’s proposal aligns with its plans to develop the Miura Next family of larger launch vehicles, aiming to strengthen Spain’s position in the European launch sector. “Our project directly impacts the entire value chain, mobilizes cutting-edge technology, and places Spain at the center of Europe’s future access to space,” said Ezequiel Sánchez, executive president of PLD Space.
Orbex, while not detailing its proposal, plans to develop both its Prime and Proxima launch vehicles. “For Orbex, it’s a major opportunity to accelerate launch vehicle development and play a central role in shaping Europe’s future in space,” Phil Chambers, chief executive of Orbex, noted.
Isar Aerospace and MaiaSpace did not publicly discuss their proposals, though Isar acknowledged its selection. “With this initiative, ESA is taking decisive steps towards commercialization and expansion of launch services, which are essential for ensuring sovereignty in space,” the company stated.
Not all applicants were successful. Latitude, a French company, expressed skepticism about the program, suggesting it may favor already well-funded companies. “It’s a pretty weird program,” said Stanislas Maximin, executive chairman of Latitude, “In my opinion, it will be used by some countries to subsidize companies that don’t need subsidizing, like MaiaSpace or Isar. That doesn’t make a lot of sense.”