ISPTech, a German-based developer of non-toxic in-space propulsion systems, has raised €5.5M ($6.4M) in seed funding led by Join Capital. The company builds HyNOx thrusters using nitrous oxide and ethane, and HIP_11 systems with hydrogen peroxide and ionic liquids, for spacecraft from CubeSats to landers. The capital will scale annual production from 4-5 to dozens of systems and fund a dedicated test facility.
European Propulsion Funding Heats Up
The round arrives amid a February 2026 propulsion funding wave: Morpheus Space raised $15M for electric thrusters, while Agile Space Industries secured $17M Series A. Dawn Aerospace has amassed $42M total for its green systems. ISPTech's chemical green propellants target high-thrust needs unmet by electric rivals, aligning with EU regulatory pushes against toxic hydrazine.
Hydrazine Phase-Out Accelerates Demand
The EU's ECHA classifies hydrazine as carcinogenic, proposing restrictions that raise handling costs and testing complexity for traditional systems. Satellite constellations now demand frequent maneuvers for collision avoidance, with over 10,000 satellites projected in LEO by 2030. Current toxic propellants fail to scale affordably for NewSpace operators facing denser orbits and sustainability mandates.
Non-Toxic Thrusters Enable Faster Iteration
ISPTech's HyNOx delivers 0.5N to 400N thrust with Isp up to 290s, self-pressurizing for CubeSat simplicity. HIP_11 offers 22N+ hypergolic ignition at TRL 5 post-vacuum tests, enabling multi-mode operation. Unlike electric propulsion's low thrust, these chemical systems provide rapid delta-V for deorbiting and servicing.
As CEO Lukas Werling told Payload Space:
“Non-toxicity helps test faster. You can develop faster, iterate faster, and the propellants are cheaper. You [also] have less regulations.”
“What we see is that the performance for those commercial applications is not a key driver.”
DLR Heritage Powers Commercial Pivot
HyNOx modules have passed shaker tests and acceptance for 2026 flights with ATMOS Space Cargo and Binar Space Program. Cold Gas modules launch Q4 2025 for 1U+ CubeSats. This drop-in readiness contrasts with competitors' longer qualification timelines.
Join Capital Backs Scale-Up Bet
Join Capital led with HTGF, Faber, First Momentum Ventures, Lightfield Equity, Final Frontier Liftoff, DLR, and Startup BW Seed Fonds participating. The mix signals deep tech conviction in Europe's sovereign space push, following ISPTech's €2M pre-seed. Investors gain exposure to ESA-funded tech with first deliveries imminent.
Satellite Propulsion Doubles by 2030
The market spans $11.05B in 2024 to $23.24B by 2030 at 13.6% CAGR, driven by constellations. Dawn Aerospace flies green systems on 42 satellites; Arkadia Space raised €2.8M for similar hypergolics. Pale Blue's $16M backs water thrusters, but lacks ISPTech's thrust range.
Green propellants rise amid regulatory tailwinds, with ISPTech's DLR-backed IP positioning it for lunar and cargo missions.
DLR Leaders Drive TRL Advances
Co-founders Lukas Werling (ex-DLR Deputy Head of Propulsion) and Felix Lauck (PhD inventor of HIP_11) hold 7+ patents and 50+ papers. They won the Horst Hauck Gründerpreis as top DLR spin-off. This expertise secured contracts and ESA funding, fast-tracking from lab to 24-person team.
2026 Flights Anchor Expansion
ISPTech targets three flight missions in 2026, including ATMOS PHOENIX deorbit. Production ramps via new facilities; hiring spans propulsion engineers and project managers. HIP_11 advances to flight heritage post-TRL 5.