ESA extends deadline for European Launcher Challenge proposals

The European Space Agency (ESA) has extended the deadline for proposals for the European Launcher Challenge, a substantial funding opportunity aimed at enhancing Europe's space transportation capabilities. Originally set for 5 May 2025, the deadline has now been extended to 19 May 2025, allowing more time for interested parties to prepare their submissions.

At Bird & Bird, we work with clients across the space and satellite industry to help navigate the broader regulatory and commercial landscape and can provide support for preparing effective bids.  

What is the European Launcher Challenge?

The European Launcher Challenge is a competitive tender designed to select European launch service providers capable of meeting institutional launch demands. This program is part of ESA's broader strategy to increase the competitiveness and diversity of European launch services, including efforts to enhance Europe’s strategic autonomy in space. The Challenge comprises two main components:

• Component A: This involves providing launch services for ESA and other European institutional customers, scheduled to occur between 2026 and 2030. This component aims to secure reliable and cost-effective launch solutions for European missions.
• Component B: This focuses on demonstrating upgraded launch service capacities, including at least one flight demonstration by 2028. This component focuses on advancing technological capabilities and ensuring Europe remains competitive in the global space market.

ESA has allocated a maximum of €169 million per Challenger, covering all activities under Components A and B.

Application and evaluation process

The application process requires Challengers to submit proposals covering both components of the program via the esa-star platform by 19 May 2025 at 13:00 CEST. The evaluation process is divided into two stages:

1. First Stage: Proposals are submitted and evaluated by ESA, which will recommend selected proposals for decision at the ESA Council at ministerial level (CM25) in November 2025, where ESA member States will decide on the exact parameters of the Challenge. This stage focuses on evaluating the technical and strategic merits of each proposal, looking at both the technical feasibility and the companies’ business plans.
2. Second Stage: Following CM25, the second stage of tendering will occur and successful proposals will proceed to negotiations and potential contract awards. This stage will further refine the selection based on detailed criteria and readiness for implementation.

ESA expects to select two to three companies to participate in the European Launcher Challenge and anticipates that the program will significantly boost the capabilities of European launch service providers, fostering innovation and competition within the sector.

Towards a change of industrial policy?

One of four “fundamental principles” of ESA industrial policy is the georeturn policy according to which ESA guarantees that member states are awarded contracts in proportion to their financial contributions toward ESA projects. 

On 18 December 2024, ESA announced they would test alternatives to their strict “georeturn” policy. Instead, under the “fair contribution” approach they consider, ESA would select companies first and then seek funding at the "CM25" ministerial conference in November of this year, where members decide on program funding and levels. The new approach would involve applying georeturn in broad “envelope type of programs” rather than on a project-by-project basis.  If this new approach is adopted, this would constitute a significant change.

Get in touch

At Bird & Bird, we are passionate about fostering a sustainable and innovative European launch market and are excited about the opportunities that the European Launcher Challenge brings.

Our international team has commercial and regulatory expertise in the space and satellite sector and can provide comprehensive bids support, including ensuring compliance with ESA and EU procurement rules and preparing tailored procured documentation. We have end-to-end expertise in space projects, including structuring and negotiating contracts for launch services, advising on regulatory compliance and risk allocation, supporting due diligence on insurance, export control requirements, licensing, and technology transfer for international launch services.

For more information or support in relation to the European Launcher Challenge or other more broadly, please contact Willy Mikalef, Andrew Dean and Hayley Blyth.