Spanish startup Arkadia Space has secured a significant $16.8 million funding package from the highly competitive European Innovation Council Accelerator. This landmark achievement makes Arkadia the first Spanish space company to receive this prestigious backing. The investment will accelerate the commercialization of its innovative green propulsion systems designed to replace toxic hydrazine fuels.
A Strategic Investment in Green Propulsion
The financial package is composed of a $2.8 million grant, $7 million in equity from the EIC Fund, and an additional $7 million from private investors. This selection from over 900 applicants signals direct institutional support from the European Commission. It underscores a strategic commitment to developing critical, domestically produced space technologies and reducing reliance on foreign solutions.
For decades, the space industry has depended on hydrazine, a highly effective but acutely toxic and carcinogenic propellant. Its use requires complex hazardous material handling and specialized facilities, adding significant time and cost to launch preparations. European regulations are increasingly restricting such substances, creating an urgent need for viable and safer alternatives.
Innovating with Hydrogen Peroxide
Arkadia is pioneering a hypergolic bipropellant system that combines high-concentration hydrogen peroxide with a proprietary green fuel. The propellants ignite spontaneously on contact, which eliminates the need for complex ignition hardware. This design enhances reliability and precision for critical operations like spacecraft docking and future lunar landings.
The company projects that its technology can lower operational and refueling costs by more than 60 percent compared to conventional systems. This substantial saving is largely due to the simpler and safer ground handling procedures that hydrogen peroxide allows. The streamlined process reduces pre-launch complexity and expenses for satellite operators, a key market advantage.
Proven Performance in Orbit
The EIC's support follows a crucial technology milestone achieved by the company last year. In March 2025, Arkadia’s DARK propulsion system was successfully launched into orbit aboard a D-Orbit satellite on a SpaceX mission. This event marked the first time a European-developed hydrogen peroxide-based propulsion system operated in space.
By June 2025, the company had confirmed successful in-orbit test firings, with performance data matching results from ground tests. The mission also demonstrated a key practical benefit of the technology. The system was fueled at the launch site without the hazardous procedures required for hydrazine.
Charting the Course for Commercialization
This new capital injection is earmarked for advancing the commercial rollout of Arkadia's green propulsion technology. The funds will support further research and development, the expansion of testing infrastructure at its Castellón Airport base, and the scaling of its commercial activities. Arkadia is also developing other systems, like the ARIEL thruster for MaiaSpace's reusable launcher.
According to CEO Francho García, the funding arrives at a pivotal moment for the company. He stated that Arkadia has already demonstrated that its technology meets market demands as a true performance alternative to toxic fuels. The company is now focused on achieving commercial deployment as early as next year.
With this substantial backing from the European Innovation Council, Arkadia Space is strongly positioned to lead Europe's transition to sustainable space propulsion. The investment not only validates its innovative hydrogen peroxide technology but also provides the necessary resources to scale its operations. Arkadia's success will be crucial in helping the European space sector move away from its dependency on hydrazine ahead of tightening regulations.