Isar Aerospace secures 200 million euros from European Space Agency

By Maria Rugamer

Aug 27 (Reuters) - German rocket startup Isar Aerospace has secured about 200 million euros ($233 million) from the European Space Agency (ESA) under a programme aimed at boosting Europe's launch industry, the company said on Thursday.

The funding comes as European governments seek to increase launch capacity to reduce dependence on SpaceX, which dominates the global market, and to secure independent access to space for civil, commercial and defence missions.

The contract, signed under ESA's European Launcher Challenge, will fund development of future launch vehicles, expansion of testing and launch infrastructure and future missions.

It is the largest of three awards announced so far under the programme, which is backed by more than 900 million euros from member states.

Andreas Schwarz, a member of the SPD party and Germany's parliamentary budget committee, said the contract highlighted the strategic importance of launch capacity as Berlin plans major spending on satellite programmes.

"Launch capacity is an elementary interest of a state," Schwarz told Reuters, arguing governments should consider instruments ranging from long-term launch commitments to state shareholdings in launch providers like Isar to ensure satellites can be placed into orbit when needed.

Isar said it had already met initial programme milestones and that its launch manifest extended through 2028, including missions for ESA and other customers.

($1 = 0.8587 euros)

(Reporting by Maria Rugamer)