Pale Blue, a Japanese small satellite propulsion developer headquartered in Kashiwa, Chiba Prefecture, has secured an additional budget allocation for its project under the Ministry of Education, Culture, Sports, Science, and Technology Small Business Innovation Research (SBIR) Phase 3 Fund. The approval was granted by an extraordinary stage gate review committee held in mid-September 2026. The additional funding will support the space demonstration of the company's Hall thruster technology within the project's third phase.
Project Background and Progress
The SBIR Phase 3 Fund project was publicly launched in February 2024 and focuses on developing and demonstrating ultra-small water ion thrusters and Hall thrusters. These propulsion systems are intended to reduce space debris by enabling satellite deorbit and collision avoidance capabilities. The project is divided into three business phases, with distinct technical milestones for each stage.
During Phase 1, Pale Blue completed the basic system design and ground testing and verification for both thruster types. The company is currently working in Phase 2 on detailed system design and ground-based system testing and verification. Development of the demonstration units is in its final stage ahead of delivery, with a scheduled transition to Phase 3 and in-orbit demonstration planned within fiscal 2027.
Additional Budget Approval
The extraordinary review committee evaluated the development status of the Hall thruster in Phase 2 and assessed the company's space technology demonstration plan based on its commercialization strategy. The committee subsequently approved the additional budget distribution for Phase 3. The decision was made ahead of the formal stage gate review for the Phase 3 transition, and the exact additional amount will be published together with that review's results.
Pale Blue stated that the newly approved allocation will allow it to further accelerate the Hall thruster space demonstration planned for Phase 3. The funding is also expected to strengthen subsequent social implementation and commercial deployment efforts. The company views this decision as an important step toward expanding the practical use of its propulsion systems.
Company Position and Outlook
Founded in 2020, Pale Blue develops and manufactures propulsion engines for small satellites and supplies solutions to satellite operators worldwide. The company has achieved multiple successful in-orbit operations of its propulsion systems since its founding. It has also established mass production capabilities at an advanced in-house production facility under strict quality control and efficient processes.
Pale Blue aims to create core mobility technologies for the space industry and lead next-generation space development from low Earth orbit to deep space. The additional SBIR Phase 3 allocation reinforces its role in addressing the growing challenge of orbital debris. It also supports the company's broader mission to deliver reliable propulsion to an expanding global market.
The additional budget approval highlights government-backed confidence in Pale Blue's technical progress and commercial potential. With Phase 2 nearing completion and a Phase 3 transition expected, the company is positioned to demonstrate Hall thruster technology in orbit within fiscal 2027. This milestone could contribute meaningfully to safer satellite operations and the long-term sustainability of the space environment.