The European Space Agency has officially published a call for proposals for its European Launcher Challenge (ELC). Initiated in November 2023, the programme aims to support the development of new sovereign European launch capabilities. While the challenge will initially focus on small launch capacities, ESA ultimately envisions it as paving the way for a successor to Ariane 6.
ESA published the much-anticipated Invitation to Tender (ITT) for the ELC on 24 March, officially opening the process for proposal submissions. The most notable update from initial reports is that the challenge will be split into two main components. The first will see the selected candidate provide launch services for ESA programmes and “possibly” other institutional customers from 2026 to 2030. The second component will cover a “launch service capacity upgrade demonstration” that requires the launch of the upgraded variant by 2028.
To qualify for contracts under the first component, candidates must complete a successful demonstration mission by the end of 2027. Any ESA mission launched under a Component A contract will receive a 25% contribution from the European Launcher Challenge programme, with the remaining launch cost covered by the ESA programme associated with the selected mission. This structure appears to effectively grant successful candidates a competitive advantage when bidding for these contracts.
While candidates are required to submit proposals for both components, requesting ESA co-funding for the second component is optional. Successful candidates who choose to request funding for the second component must secure private capital covering at least 40% of the overall budget.
ELC evaluation criteria
Each proposal will be evaluated against five weighted criteria, with particular emphasis on competitiveness and the quality of the technical approach.
Evaluation criteria and weighting:
- Suitability of the Challenger and proposed Consortium – 10%
- Robustness of the proposed ELC business case, including pricing competitiveness – 30%
- Ability to respond to institutional market needs – 20%
- Quality and credibility of proposed technical approach and planned human resources – 30%
- Compliance with the administrative tender conditions and acceptance of Contract Conditions – 10%
Proposals must be submitted by 5 May 2025, after which ESA will begin an evaluation period. The agency will then enter into dialogue with Member States to prepare funding proposals for candidates that achieve an overall average score of 60 out of 100 (‘GOOD’) based on the evaluation criteria. These discussions will help align Member State contributions with the geographical distribution of each candidate’s industrial supply chain. The resulting proposals will be presented at the Ministerial Level Council meeting in November, where final funding decisions will be confirmed.
According to ESA, it will award a maximum of €169 million per company. While this appears to be an increase from the initially proposed €150 million per award, the agency has confirmed that the new figure is simply the original amount adjusted for inflation.
The exact number of companies that will receive awards is not yet known, with the agency stating that there is no presumed number: “no minimum, no maximum.”
