The first half of the year shows that the group, specializing in the development of space launchers and missiles for Defense, enjoys excellent confidence. But it is loaded with responsibilities.

BY EMILIO COZZI

For Avio, 2022 had not ended on the best note: a few days before the year concluded on December 21, the first commercial launch of the new Vega C rocket had ended its trajectory in the Atlantic Ocean before reaching orbit, sinking with its cargo of French satellites Pleiades destined for much higher altitudes.

However, it is no coincidence that English speakers compare something difficult to rocket science. Despite the recent reports and sensationalism suggesting otherwise, taking something beyond the sky remains a complex endeavor not within everyone’s reach. Developing space vehicles and launching them successfully, as Avio has been doing since February 13, 2012, when Vega flew beyond the atmosphere for the first time, remains an industrial and entrepreneurial activity fraught with risks. This is evident from the failures of almost every company or agency in the segment.

A reliable path to the stars, however, requires the ability to address every anomaly and malfunction rigorously and ensure it does not recur. If it weren’t for one of the most overused terms in recent years, we would be talking about “resilience.”

And Avio has demonstrated resilience. The results of the first half of 2023 attest to this: the confidence of investors, customers, and the company itself in its technical capabilities and future is solid. As are the accounts for the first six months of the current year. Let’s start with the latter, which represent at least a record for the company based in Colleferro: the order book, which has surged to €1.372 billion, reflects a 35.4% increase over the first half of 2022, and records a Gross Operating Margin of €5.2 million (+€2.0 million). These figures mirror the national strategy in the context of the new space economy and the continental approach to Defense systems.

The numbers confirm, de facto, the substantial investments in Italian space, including contracts from the Recovery and Resilience Plan (Pnrr) for the development of new propulsion systems and commitments to launch national satellites and constellations, with Iride being the most prominent. Among the results, there are also contracts related to solid fuel for tactical propulsion, missiles for defense systems, and the P120C engines produced by Avio for Vega C and Ariane 6, the new European heavy launcher (produced by Arianegroup and marketed by ArianeSpace).

However, European funds project Avio into the development of liquid engines, towards new green and potentially reusable orbital launch systems. One of the bets involves a sector that is still relatively unexplored but is crucially important, as all observers agree: in-orbit servicing (or Ios), a rapidly growing range of activities consisting of maintenance and refueling services to extend the operational life of orbiting assets, satellite deorbiting at the end of life, and the removal of space debris – the so-called “Active Debris Removal.”

New requirements of European Defense

At the beginning of the year, France and Italy signed a contract to procure seven hundred Aster missiles, the darts of the Samp-T anti-aircraft system, supplied by the Eurosam consortium, for which Avio manufactures the propulsion system. “We have always produced propulsion systems for tactical missiles. In the last decade, demand had decreased; today, and even before the conflict in Ukraine erupted, the demand for systems to defend against missile attacks has increased significantly. Our know-how and production equipment allow us to meet this demand,” explained Avio’s CEO, Giulio Ranzo, in an interview with Wired. “Together with Mbda (the leading European consortium in the sector, ed.), we have qualified a new product called Cam ER, and we historically produce Aster missiles, which are the most widespread tactical missiles in Europe.”

A Busy Agenda

Following the failure of the mission launched from the spaceport in Kourou, French Guiana, on December 21, 2022, Vega C remained grounded. Other bad news for Avio arrived in June when the test of the third stage of the launch system – the Zefiro 40, whose malfunction had compromised the flight – experienced an anomaly during the static ignition test. While an independent commission has been tasked with investigating the test findings and has determined that Vega C will return to the launch pad in the last quarter of 2024, there are still 21 launches in the queue, with contracts already signed, including the six signed in November 2022 to launch the “Sentinels” of the European Commission’s Copernicus program. Another two, with the option for a third, through the European Space Agency (ESA), will lead to the launch of the Iride satellites, the cutting-edge constellation for Earth observation by the Italian Space Agency. It is perhaps the most ambitious program, and one of the most participated, in recent Italian space history.

In May, a contract was awarded to launch an experimental vehicle, Clearspace, for the ESA: a “janitor” for the removal of orbital debris. Also in May, it was announced that Vega C would launch the South Korean satellite Kompsat-6 (Korean Multi-Purpose Satellite) for Earth observation on behalf of the Korea Aerospace Research Institute. These contracts align with the goal stated by Ranzo shortly after his reappointment as Avio’s CEO with an overwhelming majority: “increase launch capacity from four to six missions per year.”

There is also confidence in the success of tests on the M10 engine, which runs on methane and will serve as the upper stage of the evolution of Vega C, the Vega E, as well as a crucial step towards acquiring expertise in liquid propellants. The development of future launch vehicles and engines, funded by the Pnrr, is at the heart of efforts to innovate the European rocket fleet and move in the direction of at least partially reusable launchers, keeping pace with the United States.

For example, the Multi-Purpose Green Engine (Mpge), a low-impact environmental liquid propulsion engine for future in-orbit servicing and space logistics applications, worth €55 million, which could replace the Avum+ engine, is of significant importance, especially in light of the ongoing conflict, which raises long-term concerns. An additional €285 million, also from Pnrr funds, comes from two contracts aimed at developing a liquid oxygen and methane engine and a new launcher for light payloads. This is another segment that will see increasing competition for more flexible and timely orbit access, especially for small payloads, all with low-impact environmental propellants.

The Numbers Are Positive

Funds from contracts worth €340 million signed in 2022, thanks to advances for projects that, as required by Next Generation EU, have a pressing deadline of 2026, have boosted revenues and the cash position in the first half of 2023 (€157.7 million and +€102.2 million, respectively). The most recent development in this direction is the acquisition of a stake in T4i (Technology for Propulsion and Innovation), a spin-off of the University of Padua, based in Monselice, which manufactures innovative propulsion systems for space applications, from small satellites to orbital and extra-orbital vehicles. This interest is justified by the orientation of space operations for this and the coming decades towards advanced maneuvering for in-or orbit servicing and the disposal of assets that are no longer operational.

Big goals come with great responsibilities: bringing Vega C back to flight soon (and with it, Europe, as there is still no set date for the debut of Ariane 6). Propelling Italian technology toward space autonomy with cleaner and more efficient engines that can be reused to enhance competitiveness against a competition that will not only come from the United States but also from India and China, which are achieving success after success. It will be essential to keep an eye on the East.

In conclusion, Avio’s journey in the space economy is marked by challenges and opportunities, and the first half of 2023 has shown promising results and a solid foundation for future growth and innovation in the space industry.