Sweden: Pioneer ECAPS gets EIB financing to develop cutting-edge technologies for space and defence

• EIB lends Swedish aerospace company ECAPS €20 million to develop advanced propulsion systems for satellites and spacecraft
• EIB financing also to cover technologies with civilian and defence uses 
• Deal marks first EIB loan to the space industry in Sweden

The European Investment Bank (EIB) is lending Swedish aerospace company ECAPS AB €20 million to accelerate the development of high-performance rocket engines and propulsion capabilities. The financing will also support advances in dual-use technologies, which can be deployed for both civilian and defence purposes.

The support by the EIB is through its TechEU initiative and takes the form of venture debt, a type of loan designed for high-growth startups and scaleups that provides additional capital without diluting ownership. The goal is to bolster production of cutting-edge space technologies within the European Union and to enhance EU security. 

The financing will contribute to ECAPS’s €47 million plan to scale its proprietary propellant and rocket engines, which are more efficient and cost-effective than traditional technologies. They also offer higher performance and safer handling compared to traditional hazardous solutions.

ECAPS intends to upgrade its testing facilities, develop new prototypes and prepare its engines for use on larger spacecraft and auxiliary systems. ECAPS will also use the EIB financing to continue developing systems for other mobility use cases, such as underwater vehicles and high-altitude platforms, expanding the commercial and security-related applications of the technology.

“ECAPS is exactly the kind of innovative European company our TechEU initiative aims to support,” said EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo. “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.”

The agreement marks the EIB’s first loan to a Swedish space company and the bank’s first investment in non-toxic propulsion. By supporting the development of dual-use systems, the operation will help reduce EU reliance on non-European suppliers at a time when space capabilities are increasingly important for communications, Earth observation and broader security priorities.

ECAPS, which is based in Stockholm, has delivered innovations whose cumulative operational life in space totals almost two centuries.  

“With a technological heritage that exceeds 190 years in space, ECAPS is equipped to continue supporting Europe’s strategic priorities in space and defence by advancing critical mobility technologies at scale,” said ECAPS Chief Executive Officer Odysseas Christofi. “As the geopolitical context around Europe remains unpredictable, this collaboration with EIB will be key to accelerate world-leading European innovation, and advance Europe’s collective ability to responsively deploy dual-use capabilities.”

The financing is backed by a guarantee under the InvestEU programme and supports EU policy priorities in the areas of space, security, defence and sustainability.

Background information

About EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in the organisation’s Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the EU is directed towards cohesion regions, where per capita income is lower than the EU average. 

The EIB Group is a key provider of finance and advisory in the critical raw materials sector. Through its new CRM strategic initiative, it aims to invest €2 billion annually across the entire value chain, supporting the EU’s Critical Raw Materials Act and ensuring a secure, sustainable supply.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About ECAPS

ECAPS is the owner and global provider of HPGP solutions – the world’s only sustainable propulsion technologies capable of rapid-response applications and dual-use mobility in space. ECAPS designs, develops, tests, qualifies and manufactures its proprietary propellant, a diverse class of rocket engines, and complete propulsion systems from its facilities in Sweden.

With more than 190 cumulative years in orbit, ECAPS is a leading provider of Swedish-European propulsion solutions, powering critical mobility in space for commercial and government missions since 2010.