Satellite Propulsion Startup Letara Selected for NEDO DTSU PCA Phase, Granted up to 1 Billion JPY in Funding for Landmark 2026 In-Orbit Demonstration

We are excited to announce that Letara has officially qualified for NEDO (New Energy and Industrial Technology Development Organization)’s Deep-Tech Startups Support Program (DTSU) PCA phase.

By the end of this phase, Letara is expected to fully launch satellites into space with our hybrid technology, possibly leading to a historical landmark of becoming the world’s first hybrid propulsion system to enter space within the next few years.

Previously, thanks to NEDO’s NEP program as well as DTSU STS phase, Letara has successfully developed multiple prototypes of hybrid engines that utilize innovative propulsion technology. By being selected for DTSU PCA, Letara is closer than ever to achieving in-space flight demonstration and therefore large-scale commercialization of the propulsion system.

With this selection for DTSU PCA, Letara has been granted up to $6.4M (1 billion yen) in funding for the in-space demonstration of our technology.

About NEDO and DTSU

NEDO is a national research and development agency in Japan that creates innovation by promoting technological development through various funding programs. NEDO acts as an innovation accelerator by supporting the development of high-risk innovative technologies with strong potential for practical application in society. As of April 1, 2025, NEDO has a budget of 146.4 billion yen, along with various fund allocations, and the agency supports 71 projects and programs.

The DTSU program provides support for research, development, and commercialization in three phases for "deep-tech startups" pursuing innovative technologies. These projects typically require long-term development and significant funding to establish the technology, bring it to market, and enable social implementation—often with high societal impact on a national or global scale.

Summary of Adopted Subsidized Projects

Previously, under the NEDO DTSU STS phase (FY2023–FY2024), Letara conducted the development of 1U–2U size EM (engineering models), including ground facilities, BBM, EM design, and various tests. As a result, key components for hybrid chemical propulsion—such as elemental technologies, test infrastructure, and a preliminary model for space demonstration—were successfully developed.

Additionally, in the same phase, Letara established a business operations base in Sapporo and renovated the former Takikawa city-owned Ebeotsu school building to support hybrid propulsion system testing. These efforts laid a strong foundation for environmental simulation and testing, ultimately strengthening the reliability and applicability of the propulsion technology.

In the upcoming DTSU PCA phase (FY2025–FY2026), Letara will enter the in-space demonstration stage. The propulsion systems have been modularized to accommodate various spacecraft scales. Initial demonstration missions will target small satellites, whereas in the future, Letara plans to offer scaled-up hybrid chemical propulsion systems for larger satellites.

Purpose of the Subsidized Project

Through the PCA phase, Letara will address remaining challenges to commercialization and accelerate the societal implementation of its technology. In-space demonstration is essential to this process. Letara will conduct sub-scale demonstrations in orbit, after which the company plans to commercialize and export its proprietary Japanese technology. Expansion into the United States is a strategic consideration, as the U.S. accounts for 60% of global space industry activity. Additional potential applications of hybrid propulsion technology are also under exploration across various sectors.

Expected Outcomes

By the end of the grant project period (FY2026), Letara aims to complete the in-space demonstration of its innovative hybrid chemical propulsion system. The company also plans to prepare for scalability demonstrations with an eye toward the NEDO DTSU DMP program. Through this grant program, Letara targets securing a solid foundation for gaining commercial contracts by the close of the grant period.

A Message from Letara

We at Letara are excited to move forward with our technology’s demonstration with NEDO DTSU PCA, as this will be a crucial step to commercializing our propulsion technology.

Letara is just getting started. Stay tuned as we bring hybrid propulsion into orbit!

■ Related Links

About NEDO DTSU:

https://www.nedo.go.jp/english/activities/activities_ZZJP_100250.html

Letara’s NEDO DTSU STS Grant Press Release (September 2023): https://www.letara.space/post/letara-selected-for-1-6m-nedo-dtsu-sts-grant