EIB Grants €20m to ECAPS to Boost EU Rocket Propulsion and Dual-Use Tech Growth

The €20 million loan will help fund ECAPS’s €47 million expansion plan, which focuses on scaling production of its proprietary green propellants and advanced rocket engines.

The European Investment Bank (EIB) has approved a €20 million venture debt loan for ECAPS AB, a Swedish aerospace propulsion company known for its non-toxic and high-performance rocket engine technologies. The investment aims to accelerate Europe’s strategic capabilities in space, defence, and advanced mobility systems.

This financing is part of the EIB’s TechEU initiative, designed to support high-growth deep-tech startups and scaleups by providing capital that does not dilute ownership, enabling companies to expand without giving up equity. The loan is also backed by the InvestEU programme, reinforcing EU priorities around security, sustainability, and technological autonomy.

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Strengthening Europe’s Space and Security Capabilities

The €20 million loan will help fund ECAPS’s €47 million expansion plan, which focuses on scaling production of its proprietary green propellants and advanced rocket engines. Key technology advantages include:

• Higher performance compared to traditional propulsion systems

• Safer handling due to non-toxic propellants

• Lower operational costs

• Reduced environmental impact

This positions ECAPS as a critical contributor to the EU’s aim of reducing reliance on non-European propulsion suppliers, particularly at a time when global geopolitical uncertainty underscores the need for indigenous, strategic space technologies.

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Major Upgrades and Future Applications

With the EIB financing, ECAPS will:

• Upgrade and expand testing facilities

Enhancing the company’s ability to evaluate rocket engines under real-world conditions, enabling faster development cycles.

• Build new propulsion prototypes

These will support future spacecraft missions and auxiliary propulsion systems that require scalable, efficient, and clean rocket technologies.

• Prepare engines for larger spacecraft

This includes expanding compatibility with satellites, orbital transfer vehicles, space tugs, and upcoming European launch systems.

• Extend propulsion technologies to new mobility domains

ECAPS is also adapting its systems for:

• Underwater vehicles

• High-altitude platforms (HAPS)

• Autonomous unmanned systems

These applications demonstrate the dual-use nature of the technology — beneficial for both commercial markets and defence/security operations.

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EIB and ECAPS Leadership Highlight Strategic Importance

Alessandro Izzo, EIB Director of Equity, Growth Capital and Project Finance

“ECAPS is exactly the kind of innovative European company our TechEU initiative aims to support. By helping scale propulsion systems that can serve both civilian and security needs, we strengthen Europe’s technological resilience and contribute to the wider green transition.”

Odysseas Christofi, CEO of ECAPS AB

“With a technological heritage exceeding 190 years in space, ECAPS is equipped to support Europe’s strategic priorities in space and defence. This collaboration with the EIB helps accelerate world-leading European innovation and enhances Europe’s ability to deploy dual-use capabilities responsively.”

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A First for Sweden’s Space Sector and for Non-Toxic Propulsion

The agreement marks:

• The EIB’s first-ever loan to a Swedish space company

• The Bank’s first investment in non-toxic, environmentally friendly propulsion

This milestone highlights the EU’s growing focus on strengthening Europe’s space industrial base, improving independent access to next-generation propulsion, and supporting companies that contribute to greener, safer, and more autonomous space operations.