Arkadia Space and Green Propulsion for Satellites: EIC Funds Innovation
- Marc Griffith
- Mar 26
- 4 min read
Summary Arkadia Space secures €14.5M from the EIC (grant, equity, and private investment) to bring to market green propulsion for satellites based on hydrogen peroxide and a proprietary propellant: in-orbit testing completed and a plan for an independent European supply chain. Key takeaways
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green propulsion for satellites Arkadia Space secured a total funding of €14.5 million from the EIC Accelerator, including a grant, equity from the EIC Fund, and private investments, to bring to market a green propulsion system for satellites and spacecraft.
Technology and Innovations: Green Propulsion for Satellites
Arkadia, founded in 2020 in Castellón, is developing a bipropellant hypergolic system based on high-concentration hydrogen peroxide and a proprietary fuel as an alternative to highly toxic fuels such as hydrazine and its derivatives.
The hypergolic nature of the solution enables instant ignition on contact of the propellants, eliminating complex ignition systems and improving reliability and precision in maneuvers.
Why It Matters: Operational and Market Impact
According to Arkadia, the system reduces operational and refueling costs by over 60% compared with traditional approaches, in addition to improving safety and operational sustainability. This translates into more precise docking, orbital operations, and lunar landings, with fewer regulatory constraints and risks for integration teams.
Industrial Implications for Green Propulsion for Satellites
The EIC investment is strategic also for the supply chain: Arkadia aims to consolidate an independent European supply chain, reducing external dependencies and ITAR constraints.
A European supply chain for green propulsion for satellites can accelerate commercial adoption and regulatory compliance for European operators and contractors.
The EIC financing includes €2.5 million in grants, €6 million in equity from the EIC Fund, and €6 million from private investors; Arkadia states it is the first Spanish space company to receive this kind of support and one of 61 selected from 923 European applications.
The mix of grants and equity not only provides resources but also institutional validation, useful for winning commercial contracts and industrial partnerships.
In-orbit validation: Arkadia's DARK system was validated in orbit in March 2025 on a D-Orbit satellite, marking the first hydrogen peroxide-based propulsion in space in Europe.
Test Results and Roadmap
Arkadia has confirmed the in-orbit validation of its DARK system and is expanding its test center at Castellón Airport to become one of Europe’s most advanced private hubs.
The expansion of the test center is designed to reduce development times and increase pre-commercial validation capacity.
The company has also signed preliminary commercial contracts (with public announcements expected in the coming months) and last year sealed its first contract with MaiaSpace.
Commercial contracts in development indicate that the technology has moved beyond experimental stages and is entering the integration phase for real customers.
European Strategy: beyond funding, the project signals European commitment to safer and more sustainable propulsion technologies required to reduce the use of toxic fuels in the space sector.
Team, History and Context
Arkadia was founded by former PLD Space professionals: Francho García (CEO), Francisco Espinosa, Ismael Gutiérrez, and Sergio Soler. They have leveraged industrial experience and knowledge of the space supply chain to design a practical alternative to hydrazine.
The founders' proven track record in the sector increases the likelihood of success in industrialization and certification phases.
Previous Funding
In 2023 Arkadia closed a seed round of €2.8 million led by Draper B1; the current EIC package strengthens its financial capacity for commercialization.
A steady progression of rounds and technical validations is a positive signal for investors and industrial partners.
Critical Analysis and Future Scenarios
Transitioning from hydrazine to safer solutions like hydrogen peroxide-based propulsion is not only technical but also regulatory, economic, and trust-based. Technically, peroxide-based hypergolic systems face challenges of stability, compatible materials, and handling oxidizers at industrial scales; regulatory-wise, Europe’s tightening restrictions on hydrazine create a competitive space but require certification standards and procedures acceptable to space agencies and commercial operators. Moreover, the promise to reduce operating costs by 60% must be viewed in light of development, testing, and certification costs, as well as the economies of scale needed for a real market discontinuity. Another critical point concerns the supply chain: building an autonomous European supply chain means investing in production, testing facilities, and qualifications for components that today may be imported. This path is strategic for autonomy but requires time and capital. On the commercial side, in-orbit validation is a strong asset for Arkadia, yet global competition and possible adoption of other green solutions (e.g., less toxic monopropellants or advanced electric propulsion systems) keep the competition high. Finally, customer adoption will require repeated demonstrations, supply contracts, and often integration with existing launchers and platforms; Arkadia's ability to forge strategic partnerships and scale manufacturing will be decisive.
In short, the commercial roadmap will depend on the ability to translate technical validation into industrial certifications, partnerships, and production volumes.
For the Founders and Innovators
Arkadia's story shows the importance of combining sector experience, real-world testing, and European backing to accelerate the adoption of deep-tech technologies.
For startup teams, the lesson is clear: real-world validation and a financial strategy that blends grants and equity can unlock commercial opportunities and scalability.
Market opportunities: investments like EIC's level the technological risk and push toward more resilient supply chains less dependent on external restrictions.
Implications for Sustainability in the Space Sector
The shift toward less toxic propellants has direct effects on safety, regulations, and the management of launch sites and integration, with potential environmental and operational benefits.
A green propulsion for satellites can reduce environmental constraints and costs of handling hazardous materials, enabling faster and safer operations.
Next Steps
Arkadia aims to commercialize the technology in the coming months, with announcements of commercial contracts and expansion of the test center to accelerate time-to-market.
The coming months will be crucial to turn technical validation into large-scale commercial contracts.
Final Reflection for Innovators
Arkadia's path shows how deep-tech innovation requires simultaneous technological progress, testing infrastructure, and financial and institutional collaborations to reach the market.
Investing in real-world validation and building an autonomous supply chain are practical steps to scale high-impact technologies.
Source and original link: https://www.eu-startups.com/2026/03/arkadia-space-lands-e14-5-million-eic-boost-for-its-green-propulsion-systems-designed-to-replace-toxic-space-fuels/
