ESA awards €544M to three launchers in ELC
The European Space Agency signed contracts worth €543.6 million with Isar Aerospace, Rocket Factory Augsburg and PLD Space on 27 August, as part of its
The European Space Agency announced on 27 August that it has signed the first contracts under its European Launcher Challenge, allocating a total of €543.6 million to three European launch providers.
The contracts were awarded to Isar Aerospace (€197.8 million), Rocket Factory Augsburg (€186.9 million) and PLD Space (€158.9 million). The funding is conditional and split into two components.
| Company | Contract Value (€) |
|---|---|
| Isar Aerospace | 197.8 |
| Rocket Factory Augsburg | 186.9 |
| PLD Space | 158.9 |
Component A requires each company to reach orbit by the end of 2027. After that, ESA will use the available funding to support operational launches through 2030. Component B co-funds upgrades to the rockets, with each provider expected to demonstrate the proposed upgrades by the end of 2028.
The allocation of funds for each component was decided by participating Member States at ESA’s Ministerial Council meeting in November 2025 (CM25). The process began with an open call for proposals in March 2025, followed by a preselection of five providers in July 2025. Shortlisted companies submitted final proposals in a second tender stage that closed in April 2026.
During CM25, ESA secured €902.16 million in subscriptions for the European Launcher Challenge. That figure includes a significant contribution from the United Kingdom, which has not yet assigned its share since Orbex closed earlier this year.
ESA’s head of strategy and launches for Space Transportation, Lucia Linares, said: “ESA has set the Challenge and created the conditions for new European launch providers to accelerate their ramp-ups and grow.”
Isar Aerospace is the only provider that has already attempted an orbital launch, though the mission failed. The company is preparing for the second flight of its Spectrum rocket. A launch attempt on 15 June from Andøya Spaceport in Norway was scrubbed after off-nominal behaviour was detected in the rocket’s fluid systems. No new launch date has been announced.
Rocket Factory Augsburg is working toward the inaugural flight of its RFA ONE rocket from SaxaVord Spaceport in Scotland. Preparations were delayed in late July when an issue discovered during pad testing forced the company to destack the vehicle for further investigation.
PLD Space is also targeting the first flight of its MIURA 5 rocket. The launch is expected to take place from the Guiana Space Centre in French Guiana before the end of 2026.
The focus now shifts to whether the selected companies can deliver on the promise behind that funding, as the European Launcher Challenge moves into its implementation phase.
