EIB Backs Sweden’s ECAPS with €20 Million to Advance Next-Gen Space and Defense Propulsion
- Staff Correspondent
- 3 days ago
- 2 min read
Swedish propulsion pioneer ECAPS AB has secured a €20 million loan from the European Investment Bank (EIB) to accelerate its development of high-performance, non-toxic rocket engines and next-generation mobility systems. The investment, delivered through the EIB’s TechEU initiative, marks the bank’s first-ever loan to Sweden’s space industry and its inaugural financing of green, non-toxic propulsion technologies.
The venture debt funding supports ECAPS’s broader €47 million scale-up plan, focused on expanding production of its proprietary propellant and propulsion systems. These technologies offer a safer, more efficient, and more cost-effective alternative to traditional hydrazine-based solutions, positioning ECAPS to play a central role in Europe’s push for secure, sustainable, and strategically independent space capabilities.
Accelerating Europe’s Dual-Use Innovation
EIB’s financing will help ECAPS strengthen its role in Europe’s space and defense ecosystem by enabling:
Upgrades to test facilities
Development of new engine prototypes
Maturation of propulsion systems for larger spacecraft and auxiliary platforms
Expansion into underwater vehicles, high-altitude platforms, and other advanced mobility domains
These advancements align with the EU’s growing emphasis on dual-use technologies, systems that serve both civilian and defense missions, and reinforce Europe’s efforts to reduce reliance on non-European suppliers for critical space infrastructure.
“ECAPS is exactly the kind of innovative European company our TechEU initiative aims to support,” said Alessandro Izzo, EIB Director of Equity, Growth Capital and Project Finance. He emphasized that dual-use propulsion technologies contribute directly to Europe’s technological resilience and green transition goals.
A Legacy of Proven Performance
From its base in Stockholm, ECAPS has achieved nearly 190 cumulative years of operational performance in orbit, demonstrating exceptional reliability across global space missions. CEO Odysseas Christofi stressed that the EIB partnership comes at a critical moment:
“As Europe faces an increasingly unpredictable geopolitical environment, this collaboration will accelerate world-leading innovation and enhance Europe’s ability to deploy responsive, dual-use capabilities.”
The financing is backed by an InvestEU programme guarantee, reinforcing EU strategic priorities in space, defense, security, and sustainability.