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European Space Agency’s transformative initiative: private sector goes into space to rescue troubled rockets

The European Space Agency (ESA) announced at the ESA Space Summit in Seville, Spain, a groundbreaking initiative aimed at changing the traditional model of space exploration by engaging the private sector to promote space access and rescue troubled rockets.

The initiative aims to address the short-term space utilization gap caused by delays and technical setbacks with the Ariane 6 and Vega-C rockets. Europe is determined not only to catch up, but also to make a leap in the global space race.

A new era of competition

ESA’s goal is to promote competition and encourage the private sector to develop small rocket services. This approach is very different from ESA’s history of designing and procuring launchers. Instead, ESA aims to adopt a more streamlined procurement model for services to stimulate growth in the European space industry.

European Space Agency’s transformative initiative: private sector goes into space to rescue troubled rockets

“The Launcher Challenge will not only reduce the cost of public funding, but will also create a new market for European space entrepreneurs,” said ESA Director General Josef Aschbach.

ESA’s vision is not limited to small rockets, and it sees this as a first step that could set the tone for long-term alternatives to Europe’s heavier Ariane 6 and Vega-C rockets.

The role of France, Germany and Italy

France, Germany and Italy have played a key role in breaking the deadlock that could have prevented this transformative initiative. Together with other ESA member states, these countries are working to ensure a stable future for heavy and medium launchers.

This cooperation includes funding support of up to €2.12 billion per year from 2023 for Ariane 6 and €1.1 billion for Vega-C. This funding will help bridge the gap between rising production costs and market prices.

In addition, the agreement guarantees a minimum number of institutional launches for Ariane 6 and Vega-C, providing much-needed stability for the industry. These launches will continue from the 16th to the 42nd flight, instilling confidence in contractors such as Airbus-France Aerospace to continue their work.

In exchange for this support, the industry faces the challenge of reducing costs by 11 percent. As Bruno Le Maire, the French Minister of Finance, emphasized, reducing costs will play a crucial role in ensuring that Ariane 6 remains competitive.

Italy has also made significant progress in this deal, as Italian manufacturer Avio may soon operate Vega-C alongside Arianespace, which is currently the only operator in Europe.


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