Europe’s space technology sector is experiencing a strategic shift as the continent moves to reduce its dependence on toxic propellants and build sovereign capabilities in satellite operations. Amid tightening EU regulations on hydrazine-based systems and growing demand for sustainable orbital infrastructure, a new generation of deeptech startups is emerging to fill critical gaps in the European space supply chain.
Arkadia Space, the Castellón-based propulsion startup, has secured €14.5 million through the European Innovation Council (EIC) Accelerator — one of the EU’s most competitive deeptech funding instruments. The package comprises a €2.5 million grant, €6 million in equity from the EIC Fund, and €6 million in private investment. Arkadia is the first Spanish space company to access EIC Accelerator funding, selected from 923 applications as one of just 61 startups in this round.
EIC Accelerator backs hydrogen peroxide propulsion
The funding signals the European Commission’s recognition of hydrogen peroxide propulsion as a strategically important technology. Arkadia’s flagship product, the DARK propulsion system, is a hypergolic bipropellant engine that combines high-concentration hydrogen peroxide with a proprietary green fuel. The system ignites spontaneously upon propellant contact, eliminating the need for complex ignition hardware and reducing operational and refuelling costs by more than 60 per cent compared with conventional hydrazine-based solutions.
Founded in 2020 by Francho García (CEO) and Ismael Gutierrez (CTO), the company has spent five years developing alternatives to the toxic propellants that have long dominated satellite manoeuvring. The cost differential is striking: filling a satellite tank with hydrazine typically costs around €2 million, whereas Arkadia’s hydrogen peroxide-based operations run under €50,000 — including all ground equipment.
Arkadia achieved a critical milestone in March 2025 when its DARK system became the first hydrogen peroxide-based propulsion technology to fly in orbit from Europe. Launched aboard a D-Orbit ION Satellite Carrier on SpaceX’s Transporter-13 mission from Vandenberg Space Force Base, the system successfully completed in-orbit test firings that matched ground test data, confirming its viability for commercial satellite operations.
“This recognition confirms that we are on the right path and gives us a tremendous boost to commercialise the technology as early as next year,” said Francho García, co-founder and CEO of Arkadia Space.
European spacetech builds momentum with strategic partnerships
The EIC backing comes as Arkadia deepens its ties with the European space establishment. The company holds four contracts with the European Space Agency (ESA), including work under the Future Launchers Preparatory Programme. Perhaps most notably, Arkadia has secured a supply agreement with MaiaSpace, the ArianeGroup-backed reusable launch vehicle programme, to provide 250-newton reaction control thrusters — a contract that positions the startup within Europe’s next-generation launch architecture.
The company has also developed ARIEL, a 250-newton monopropellant thruster that reached technology readiness level 6 within two years, further demonstrating the versatility of its hydrogen peroxide platform across both satellite and launcher applications.
Arkadia previously raised a €2.8 million seed round in October 2023, led by Draper B1 with participation from Expansion Ventures. The latest EIC funding brings total capital raised to approximately €17.3 million, providing a substantial runway to move from demonstration to commercialisation. The company plans to expand its testing infrastructure at Castellón Airport and targets production of 300 to 400 propulsion systems annually, with a view to becoming a vertically integrated European supplier of green propulsion technology.
Summary
Company: Arkadia Space
Headquarters: Castellón, Spain
Founded: 2020
Round: EIC Accelerator (grant + equity + private)
Amount: €14.5 million
Lead: European Innovation Council
Previous funding: €2.8M seed (Draper B1, 2023)
Use of funds: Commercialisation of green propulsion, R&D expansion, testing infrastructure, scaling operations