ESA Announces Recipients of LEO Cargo Return Service Contracts

ESA has awarded €25 million LEO Cargo Return Service contracts to The Exploration Company and Thales Alenia Space.
Credit: Thales Alenia Space/The Exploration Company

The European Space Agency has announced that it has awarded contracts for its LEO Cargo Return Service initiative to The Exploration Company and Thales Alenia Space Italia.

The LEO Cargo Return Service initiative was first announced in May 2023 with the aim of promoting the development of commercial-operated spacecraft capable of transporting cargo to and from low Earth orbit. In November 2023, during the ESA council meeting in Seville, Spain, member states approved the initiative, and €75 million was drawn from the agency’s existing budget for the project’s first phase. The agency explained that it intended to award up to three phase 1 contracts.

ESA announced the awarding of the two LEO Cargo Return Service contracts on 22 May during the Space Council meeting in Brussels. Each company will receive €25 million in funding to complete phase 1 development of their respective vehicles.

“Today ESA has further proven its leadership in space for Europe and European citizens,” explained ESA Director General Josef Aschbacher. “The signature of the low Earth orbit cargo return service contracts shows how ESA has modernised to meet the demands of the next era of the space economy.”

During phase 1 development, the selected companies will mature the design of their respective vehicles, focusing on mission requirements, architectures, technology maturation, and de-risking activities. This phase of development is expected to run from June 2024 to June 2026.

Phase 2 of the initiative will see the companies develop and execute a demonstration mission that must be launched by the end of 2028. However, the commencement of Phase 2 will be subject to decisions and appropriations made at ESA’s next ministerial-level council meeting, which will take place in late 2025.

Nyx Earth – The Exploration Company

The Exploration Company is developing a modular spacecraft that will be capable of being adapted for a number of different roles. The variant that will be utilized for its LEO cargo return service is referred to as Nyx Earth.

“We are delighted to win the competition and sign this contract with ESA. This historic initiative demonstrates ESA’s agility and willingness to act as an anchor client, hence combining public and private funding as NASA did about 15 years ago,” explained The Exploration Company CEO Hélène Huby. “We shall continue to act bold, to act fast, and to act together. This is how we built Airbus and the Euro global success stories – and this is how we will build the next European space global success stories.”

According to the company’s website, Nyx Earth will be capable of delivering up to 4,000 kilograms of cargo from Earth to low-Earth-orbiting space stations. Once its mission in orbit is concluded, it will be capable of returning to Earth with up to 3,000 kilograms of cargo. The company has projected that it will charge customers $150 million per mission, all-inclusive.

The Exploration Company has completed a sub-scale prototype of its spacecraft called the Bikini Demo, which is expected to be launched aboard the maiden flight of the Ariane 6 rocket in the first two weeks of July. It is also currently in the process of completing the manufacture of its larger Mission Possible demonstrator, which is slated for launch in 2025.

Thales Alenia Space

While little is known about the Thales Alenia Space vehicle, the company has released information about its Earth Re-entry Vehicle demonstrator, which features an “Apollo-like shaped capsule” with a 4.5-metre diameter that will be launch vehicle agnostic. Additionally, the company has stated that the vehicle’s structure supports the future development of a crewed vehicle.

“We’re truly honored that ESA has placed its trust in our company by awarding the contract to develop cargo transportation services for commercial operators of Low Earth Orbit stations, thus giving us, as a leading European company, the opportunity to develop a commercial service to offer on the global market,” said Massimo Comparini, Deputy CEO and Senior Executive Vice President, Observation, Exploration, and Navigation at Thales Alenia Space.

Thales Alenia Space Italia will act as the prime contractor, with Thales Alenia Space France assisting as a subcontractor. ALTEC, a joint venture between Thales Alenia Space Italia and the Italian Space Agency, completes the core team. The company has, however, stated that the industrial team will be enlarged during phase 1 development.

The missing third contractor

When the LEO Cargo Return Service initiative was officially approved, ESA stated that it would award up to three contracts. A total of seven proposals were received, of which those from Thales Alenia Space and The Exploration Company were selected. According to the agency, two of the five other bidders were in contention for the third contract with bids of sufficient quality to prompt ESA to ask the companies involved to rework their proposals for resubmission. A decision on this third contract was only confirmed earlier today, with the agency selecting not to award it to either of the two other bidders.

Andrew Parsonson
Andrew Parsonson has been reporting on space and spaceflight for over five years. He has contributed to SpaceNews and, most recently, the daily Payload newsletter. In late 2021 he launched European Spaceflight as a way to promote the continent's excellence in space.