Europe’s Leap Towards Reusability: ESA and AVIO’s Ambitious Plans for a Reusable Upper Stage

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Groundbreaking Contract

In a pivotal moment for European space exploration, the European Space Agency (ESA) and Italian aerospace company Avio signed a groundbreaking contract on September 29, 2025, to advance the development of a reusable upper stage for future rockets. This agreement, valued at €40 million (approximately $47 million), marks a significant step in Europe’s ongoing efforts to embrace reusability in space launch systems, a technology that has revolutionized the industry through pioneers like SpaceX. The contract, inked during the International Astronautical Congress (IAC) in Sydney, Australia, initiates 24 months of intensive development activities aimed at demonstrating an in-flight reusable upper stage capable of returning to Earth and being reflown.

This initiative is not just about catching up with global competitors; it’s about securing Europe’s strategic independence in space access, reducing launch costs, and enabling more frequent missions to support an emerging orbital economy. As space transportation evolves towards sustainable, high-cadence operations, reusable upper stages represent the next frontier. Unlike first-stage boosters, which have seen successful reuse in vehicles like Falcon 9, upper stages operate in the harsh environment of orbital velocities, making their recovery and refurbishment exponentially more challenging. ESA and AVIO’s collaboration could pave the way for evolutions of the Vega rocket family or entirely new fully reusable European launchers, positioning the continent as a key player in the new space race.

This article reviews the details of this contract, explores the historical context of reusability in space, examines the technical innovations at play, compares it to global counterparts, and discusses the broader implications for Europe’s space ambitions. With reusability poised to transform space logistics – envisioning orbital hubs akin to terrestrial airports – this development underscores Europe’s commitment to innovation and sustainability in space.

The Historical Context of Rocket Reusability

The concept of reusable rockets traces its roots back to the early days of spaceflight, but it wasn’t until the 21st century that it became a practical reality. NASA’s Space Shuttle program in the 1980s introduced partial reusability, with the orbiter and solid rocket boosters being recovered and refurbished, though at immense cost and complexity. The shuttle’s upper stage equivalent – the External Tank – was expendable, highlighting early limitations.

The true paradigm shift came with SpaceX’s Falcon 9 in 2015, when the company successfully landed and reused its first-stage booster. This achievement slashed launch costs dramatically, from around $10,000 per kilogram to low Earth orbit (LEO) historically, to under $3,000 today. Reusability extended to the Falcon Heavy and, more ambitiously, to Starship, which aims for full reusability including the upper stage. Starship’s design, with its stainless-steel construction, heat shields, and aerodynamic flaps for controlled reentry, has inspired global imitators, including China’s Long March 9 and now, Europe’s nascent efforts.

Europe, meanwhile, has traditionally favored expendable launchers like Ariane 5 and Vega, prioritizing reliability over cost-cutting innovations. The Ariane series, developed under ESA’s umbrella, has been a workhorse for geostationary satellites, while AVIO’s Vega caters to small payloads in LEO and sun-synchronous orbits. the rise of commercial space ventures and the economic pressures from subsidized competitors have forced a rethink. In 2022, ESA launched the “Future Launchers Preparatory Programme” (FLPP), which includes reusability studies. Projects like Themis – a reusable first-stage demonstrator by ArianeGroup – and Prometheus, a low-cost methane-oxygen engine, laid the groundwork.

Upper stage reusability remains elusive worldwide. These stages must endure hypersonic reentry speeds exceeding 7 km/s, manage thermal loads from atmospheric friction, and execute precise propulsive landings or parachute-assisted recoveries. Europe’s Space Rider, an uncrewed reusable spaceplane developed by AVIO and partners, provides valuable reentry experience, but it’s not a full upper stage. The ESA-AVIO contract builds on this heritage, aiming to integrate launch, orbital deployment, and return capabilities into a single reusable module.

To understand the evolution, consider the broader shift in space economics. Expendable rockets, while reliable, contribute to high costs and space debris. Reusability addresses both, with studies showing potential cost reductions of 50-70% after multiple flights. Europe’s delay in adopting this stemmed from institutional inertia and funding models reliant on government contracts rather than commercial markets. But with the advent of mega-constellations like Starlink and increasing demand for smallsat launches, the pressure mounted. The 2023 ESA Ministerial Council allocated funds for reusability R&D, setting the stage for contracts like this one. Historically, Europe has excelled in scientific missions – think Rosetta or Gaia – but launch autonomy has been a vulnerability, especially post-Ariane 5 retirement in 2023.

ESA and AVIO: Key Players in European Space

The European Space Agency, founded in 1975, is an intergovernmental organization with 22 member states, dedicated to advancing space science, technology, and applications. ESA’s space transportation directorate oversees launchers like Ariane 6 and Vega, ensuring sovereign access to space amid geopolitical tensions. Recent challenges, including the retirement of Ariane 5 and delays in Ariane 6, have heightened the urgency for cost-effective, reusable alternatives.

AVIO, headquartered in Colleferro, Italy, is a leading aerospace firm specializing in solid and liquid propulsion. As the prime contractor for the Vega launcher family, AVIO has launched over 20 missions since 2012. Vega C, an upgraded variant, uses the P120C solid rocket motor as its first stage, shared with Ariane 6 for cost synergies. AVIO’s involvement in liquid propulsion includes the M10 engine for Vega E’s upper stage, using liquid oxygen (LOX) and methane – a fuel choice favored for its clean burning and reusability potential. Additionally, AVIO leads the service module for Space Rider, gaining expertise in reentry vehicles.

The partnership between ESA and AVIO is symbiotic: ESA provides funding and oversight, while AVIO brings industrial know-how. This contract results from a joint harmonization process to maximize returns on European and national investments, complementing national programs in Italy and beyond. AVIO’s recent independence in marketing Vega launches from Arianespace further empowers it to pursue innovative projects like this.

AVIO’s track record includes contributions to Ariane’s solid boosters and expertise in methalox propulsion, positioning it uniquely for this challenge. Italy’s space sector, bolstered by the Italian Space Agency (ASI), has invested heavily in AVIO, seeing reusability as a pathway to economic growth and technological leadership.

Details of the ESA-AVIO Contract

The €40 million contract spans 24 months, focusing on preliminary design and technology maturation for a reusable upper stage demonstrator. Activities include assessing system requirements, designing flight and ground segments, and de-risking key technologies. By the end, AVIO will deliver a preliminary design review (PDR), a milestone that outlines the vehicle’s architecture without committing to full-scale prototyping.

The demonstrator aims for in-flight validation, where the upper stage would deploy payloads, deorbit, reenter the atmosphere, and land for reuse. Ground infrastructure, such as recovery facilities and refurbishment sites, is also part of the scope. The project supports multiple scenarios: enhancing Vega’s capabilities or integrating with new reusable launchers under ESA’s European Launcher Challenge, which funds startups like Rocket Factory Augsburg and PLD Space.

The contract was signed by ESA’s Director of Space Transportation, Toni Tolker-Nielsen, and Avio’s Chief Commercial Officer, Marino Fragnito.

Technical Innovations and Challenges

At the heart of the project is the reusable upper stage’s design, conceptualized as a “mini-Starship” with aerodynamic flaps for controlled reentry, heat shields to withstand plasma temperatures up to 1,600°C, and landing legs for vertical touchdown. The vehicle would sit atop an expendable first stage, likely the P120C solid booster from Vega C, resulting in a total height of about 36.5 meters – compact compared to Starship’s 120 meters.

Propulsion is key: AVIO’s M10 engine, a LOX-methane thruster under development for Vega E, could power the upper stage. Methane offers advantages over traditional hypergolics or hydrogen – it’s denser, easier to store, and produces less soot, facilitating reuse. For reentry, the stage might employ propulsive deceleration, using engines to slow down before atmospheric braking, followed by a belly-flop maneuver like Starship to maximize drag.

Challenges abound. Upper stages reach orbital speeds, requiring robust thermal protection systems (TPS) to survive reentry without burning up. Europe’s experience with the Atmospheric Reentry Demonstrator (ARD) in 1998 and the Intermediate eXperimental Vehicle (IXV) in 2015 provides baselines, but scaling to a full stage demands advancements in materials like ceramic composites or ablative coatings. Recovery logistics – whether ocean splashdown or land-based – add complexity, as does rapid refurbishment to achieve economic viability.

Integration with Vega evolves the launcher: Vega E, slated for 2026, replaces upper stages with a cryogenic module, setting the stage for reusability upgrades. This could boost Vega’s payload capacity to LEO from 2.3 tons to over 3 tons while cutting costs through reuse. AVIO’s work on the MR60, a larger methalox engine, could further enhance performance for future vehicles.

The artist’s concept shows a stage with four flaps at top and bottom, mimicking Starship’s design for stability during reentry. This convergence on designs reflects physics-driven efficiencies, but Europe must innovate in areas like lightweight materials to compete.

Comparison with Global Efforts

ESA and AVIO’s plans draw clear inspiration from SpaceX’s Starship, which has demonstrated upper stage reentry prototypes in flight tests. Starship’s Super Heavy booster and Ship upper stage aim for rapid reuse, enabling Mars missions and mega-constellations. Similarly, Blue Origin’s New Glenn features a reusable first stage, but upper stage plans remain vague. China’s reusable Long March variants echo Starship’s flap design, targeting 2030 operations.

Within Europe, ArianeGroup’s Susie (Smart Upper Stage for Innovative Exploration) parallels this effort. Unveiled in 2022, Susie is a reusable upper stage for Ariane 6, capable of cargo or crew transport, with scale-model tests ongoing since 2023. Themis, a hopper demonstrator for first-stage reuse, complements upper-stage work. These initiatives reflect a fragmented yet collaborative European approach, contrasting SpaceX’s integrated model.

Globally, reusability is maturing: Rocket Lab’s Neutron aims for partial reuse, while India’s ISRO explores similar concepts. Europe’s focus on upper stages first is unique, leveraging Vega’s small scale for quicker iteration. Critics note the €40M is modest compared to Starship’s billions, but it emphasizes targeted tech maturation.

Economic and Strategic Implications

Reusability promises to halve launch costs, making space accessible for startups, research, and defense. For Europe, this means competing with SpaceX’s $67 million Falcon 9 launches versus Ariane 6’s $100 million-plus. The contract aligns with ESA’s vision of orbital “transportation hubs” for in-space manufacturing, tourism, and logistics.

Strategically, it bolsters sovereignty amid reliance on foreign providers like SpaceX for rideshares. Italy benefits economically, with AVIO employing thousands and fostering high-tech jobs. Broader EU goals include sustainability – reducing space debris through deorbiting – and innovation spillovers to aviation and energy sectors.

risks include budget overruns, technical setbacks, and market saturation. ESA’s investment leverages public-private synergies, but success hinges on integration with broader programs like Artemis or independent LEO missions.

Future Roadmap and Conclusion

Post-24 months, a successful PDR could lead to full-scale prototyping, with first flights potentially in the early 2030s. Integration with Vega E or new launchers could debut by 2035, supporting ESA’s Artemis program contributions or independent missions.

ESA and AVIO’s reusable upper stage plans represent a bold evolution for European spaceflight. By tackling the complexities of orbital reuse, this initiative not only addresses immediate technological gaps but also secures a sustainable future in space. As Giulio Ranzo aptly stated, it’s about creating “an advanced, lightweight, performance-efficient solution” for higher flight rates and competitive costs. With global space activities accelerating, Europe’s commitment to reusability ensures it remains a vital contributor to humanity’s cosmic endeavors.

Last update on 2025-12-13 / Affiliate links / Images from Amazon Product Advertising API