• A consortium led by ITP Aero, with participation from Pangea Aerospace, the engineering and technology group Sener, and Aenium Engineering, will complete the development of the ARCOS aerospike engine — a groundbreaking propulsion technology — and prepare it for integration with European launchers.
• This project is the second most significant initiative funded by the Spanish Space Technology Programme, backed by CDTI Innovación and the Spanish Space Agency, with a total budget of €11.6 million. It is part of a larger €70 million R&D support plan aimed at boosting the competitiveness of the national space industry.

Barcelona, April 09, 2025 – The MERLIn project (Efficient and Reusable Engine for International Launchers) has received the second-largest grant within the Spanish Space Technology Programme (PTE), with a total budget Project of €11.6 million. This funding is part of a broader initiative from CDTI Innovación and the Spanish Space Agency, under the Ministry of Science and the Ministry of Defense, to accelerate the development of key technologies for future space exploration.

This investment reinforces Spain’s commitment to strengthening its space industry and boosting its leadership in advanced propulsion technologies over the next decade.

The PTE is part of the Aerospace PERTE and is funded through the Recovery and Resilience Mechanism of the PRTR Addendum. With a total budget of €70 million, it aims to promote the competitiveness of the Spanish aerospace sector through R&D-based technological capability development.

Pangea Aerospace leads MERLIn’s budget allocation

The project focuses on the development, manufacturing, and integration of ARCOS, the world’s first flight-ready aerospike engine. It is led by ITP Aero, in collaboration with Pangea Aerospace, Sener, and Aenium Engineering. Pangea Aerospace, a start-up based in Barcelona and Toulouse specializing in advanced space propulsion, has been awarded €3.9 million, receiving the largest share of the grant as the project’s technical leader, responsible for developing the engine from design to testing.

MERLIn represents a clear example of successful public-private collaboration in the Spanish aerospace sector, preparing the industry to tackle future global challenges.

Each consortium member contributes unique expertise:

• Pangea Aerospace is responsible for the complete development of the engine, from design to testing.
• ITP Aero coordinates the consortium and contributes its global leadership in propulsion systems.
• Sener provides the thrust vector control (TVC) system, drawing on its deep experience in high-performance engineering solutions.
• Aenium Engineering contributes its capabilities in advanced materials and additive manufacturing.

ARCOS: High-efficiency, reusable propulsion

The funding received through MERLIn marks the first full-system support for ARCOS, enabling Pangea Aerospace to advance development toward a ground-tested, integrated engine ready for future integration with European customers.

ARCOS will deliver 750 kN of thrust and is designed for upper-stage use in medium and heavy launch vehicles, offering improved performance and enabling the re-entry and reuse of upper stages — something only SpaceX has achieved to date.

ARCOS runs on methane and liquid oxygen, a cleaner and more sustainable fuel combination that reduces CO₂ emissions by up to 50% compared to traditional kerosene engines. Thanks to its aerospike geometry, ARCOS is up to 15% more efficient than conventional bell-nozzle engines, dramatically improving launch economics.

For more information on the 2024 resolution of the Spanish Space Technology Programme, here.