Japan allocated an additional ¥3.93 billion to Interstellar Technologies’ ZERO rocket development program in October 2026, raising the company’s cumulative grant ceiling under the program to ¥19.37 billion. The company’s October 9 announcement identifies technical development and flight demonstration of the small-satellite launcher as the funded work.
The award belongs to the Ministry of Education, Culture, Sports, Science and Technology’s Small Business Innovation Research Phase 3 fund. Its commercial-rocket theme runs from October 2023 through Japanese fiscal year 2027. Four companies entered the program, and two, including Interstellar, proceeded into its final period following reviews in September 2024 and March 2026.
How the Additional Allocation Was Approved
The ministry published its funding decision on October 7. An external expert committee reviewed written submissions and presentations before approving one additional allocation under the commercial-rocket development and demonstration theme. The ministry described the supplementary review as a means of achieving the project’s objectives and increasing the results delivered through the program.
This stage-gate arrangement links additional support to a formal assessment during development. The October decision adds to an existing project rather than establishing a separate rocket program. The ¥19.37 billion figure is the cumulative ceiling for grants under that program, identifying the maximum allocated support rather than the amount already spent on flight hardware.
Interstellar has also reported ¥20.1 billion in private Series F financing led by Woven by Toyota. Its business partnership with Toyota Motor Corporation and Woven by Toyota covers development of the manufacturing organization for commercialization beyond the first vehicle. Public development support and private investment finance different relationships with the same launch company.
The Vehicle Supported by the Award
Interstellar’s published ZERO design is a two-stage launch vehicle intended to carry up to 1,000 kilograms into low Earth orbit. The specified vehicle is 32 meters long, with a five-meter payload fairing and a fully loaded mass of 71 metric tons. The company markets dedicated launches and shared flights for small satellites.
The first stage uses nine engines, and the second stage uses one. Staging allows the vehicle to discard the lower stage after its work is complete, leaving the upper stage to continue accelerating the payload. The fairing encloses satellites during the atmospheric portion of ascent, protecting equipment until the cover can be separated.
ZERO’s COSMOS engine uses liquid biomethane fuel and liquid oxygen. The company identifies locally produced biogas from livestock manure as the feedstock for the biomethane. Its published engine configuration uses a gas-generator cycle and regenerative cooling, in which flowing propellant removes heat from engine structures before combustion.
The intended service includes configurations for an individual small satellite or combinations of small satellites and CubeSats. These are proposed payload arrangements for the vehicle under development. A dedicated mission centers on one customer’s delivery requirements; a shared flight carries several payloads within the same launch campaign.
Preparing the Hokkaido Launch Site
The rocket’s ground infrastructure advanced during the same month. On October 14, Taiki Town announced completion of its major Launch Complex 1 construction at Hokkaido Spaceport. Interstellar is the complex’s first launch customer and is building specialized propellant plant equipment for its vehicle.
Town-led facilities include a vehicle assembly building, propellant-related infrastructure, the launch pad, and flame trenches that route engine exhaust. The public works provide the physical setting for final assembly, loading, and launch preparation. Vehicle-specific equipment connects that common infrastructure with ZERO’s fuel, oxidizer, and operational interfaces.
Taiki owns the launch facilities, and SPACE COTAN manages and operates them under a concession. The arrangement separates public ownership from private facility operation and from Interstellar’s responsibility for its rocket and specialized equipment. New Space Economy’s account of Hokkaido’s public and private responsibilities explains how these roles fit together.
Support Extends to Follow-On Demonstration Flights
A subsequent November 2 announcement described Interstellar’s selection for the Japan Aerospace Exploration Agency’s STAND program, which supports commercial-rocket launch demonstrations. The company said its work would extend the technology developed for ZERO’s first vehicle into multiple demonstrations beginning with the second vehicle.
The announced program ceiling is ¥12 billion per company, with a planned support period through March 2031, subject to stage-gate evaluations. Interstellar plans to collect flight and operating data and use those results to improve designs, manufacturing processes, and launch operations. That work connects repeated flights with changes to the production and operating system.
JAXA’s STAND program description places these demonstrations within Japan’s objective of establishing more frequent, lower-cost transportation through government and commercial rockets. The program supports development of service functions and improvements in reliability, production, cost, and operability through multiple launches. Interstellar’s stated next phase is to apply the first vehicle’s development work to those follow-on flight demonstrations.
