ESA initiates European Launcher Challenge for new vehicles

The European Space Agency (ESA) has announced a new competition to support the development of new launch vehicles. The competition, called the European Launcher Challenge, was officially launched on March 24. Proposals from interested companies are due by May 5, and winners will be revealed in about eight months. ESA has set aside up to 169 million euros (around 183 million dollars) for each selected vehicle. The competition includes two main components: one for providing launch services for ESA and other European government customers from 2026 to 2030, and another for upgrading launch capacity, with a demonstration launch required by 2028. This initiative builds on previous plans announced in November 2023, when ESA decided to open launches to new competitors while ensuring contracts for its current vehicles, Ariane 6 and Vega C. The agency aims to test a new “fair contribution” approach instead of the traditional georeturn policies which favored companies based in member states. Toni Tolker-Nielsen, ESA's director of space transportation, stated that proposals will be evaluated for technical feasibility and business plans after the May 5 deadline. ESA expects to select two to three companies for the challenge, and these companies will need to match ESA's funding with their own investments. Six European companies have already indicated their support for the challenge, requesting substantial funding and access to launch facilities in French Guiana. However, PLD Space, which is developing a small launch vehicle, chose not to join this letter, emphasizing the need for market selection of the winners. Isar Aerospace, another potential contender, recently scrubbed its first launch attempt of the Spectrum rocket due to poor weather. The company plans to resume its launch efforts as soon as conditions improve.