On 30 June 2025, the European Defence Agency (EDA) signed the contract for the LEO2VLEO project to develop and deploy a constellation of military defence satellites capable of manoeuvring between Low Earth Orbit (LEO) and Very Low Earth Orbit (VLEO).
The €10 million contract was signed at the EDA headquarters by Chief Executive André Denk and Jeroen Rotteveel, CEO of ISISPACE, who leads the industrial consortium.
Co-funded by the Netherlands’ Ministry of Defence and the Austrian Armed Forces, the project will design, develop, build, launch, and operate a constellation of three 16U satellites. The launch is planned within two years, marking a significant leap in European defence space capability.
Market forecasts by Region, Type, Application, and End-User. Country Analysis, Market and Technology Overview including Critical Raw Materials, Opportunity Analysis, and Leading Company Profiles
Download free sample pages More informationChief Executive Denk said: “LEO2VLEO is not just a demonstration of technology but a testament to our ability to work through multinational cooperation. We are proud to support this pioneering effort that will strengthen the EU’s resilience and readiness in space, an increasingly contested domain.”
ISISPACE CEO Rotteveel said: “It is encouraging to see this project gaining momentum, as it is a crucial step towards developing the space systems necessary for ensuring Europe's safety. Together with our consortium partners, we are confident in our ability to quickly deliver the functionalities required by the Dutch and Austrian Ministries of Defence.”
Earth observation, minimal debris
For EDA and its Capability Technology Area (CapTech) Space, the project represents an achievement in defence research and technology (R&T). It will be the first known European military satellite constellation capable of transitioning between LEO and VLEO – a manoeuvre that enables greater flexibility, higher-resolution imaging, and enhanced responsiveness during crisis operations.
The LEO2VLEO satellites will provide proof of concept and in-orbit demonstration of defence applications, addressing Europe's urgent need for sovereign, rapid-response space assets. Using VLEO offers several strategic advantages, including improved communications, agility, and Earth observation capabilities, while minimising space debris risk.
This novel approach uses off-the-shelf components combined with extensive R&T to accelerate operational readiness. The project also foresees the inclusion of payloads for Earth observation and navigational warfare – both critical in today’s security environment.
EDA’s Hub for EU Defence Innovation (HEDI) supported the initiative through a preliminary study based on its 2023 proof-of-concept framework. This early investment by HEDI has helped pave the way for the current demonstrator phase.
In addition to demonstrating in-orbit performance, the project includes pre-operational capability development, laying the foundation for a future fully operational military satellite system. If successful, LEO2VLEO will set the stage for enhanced autonomy and resilience in European defence missions.
The project brings together a consortium of European innovators, comprising: