Aurora Avionics has signed a £525,000 agreement with Barcelona-based Pangea Propulsion, under which the Edinburgh firm will supply space-ready avionics systems, essentially the rocket’s nervous system, for Pangea’s groundbreaking ARCOS engine.

The deal marks a key moment for the firm, which earlier this year secured a £500,000 investment led by Kelvin Capital, alongside Gabriel and Scottish Enterprise, to support its next phase of growth.

Aurora Avionics CEO, Oren Smith-Carpenter, said: “We have wanted to work with the Pangea Propulsion team since founding Aurora Avionics two years ago.

“They are a world-leading Space company and are doing groundbreaking work. We think the combination of two ambitious, agile organisations will be a large step forward for European space.

“This marks another significant milestone in our growth journey. The progress so far has been remarkable, and we remain determined to ensure Aurora Avionics stays at the forefront of technological development in the space industry.”

Barcelona-based Pangea Propulsion is pioneering the development of the aerospike engine, a long-theorised design often described as the “holy grail” of rocket propulsion.

Unlike conventional engines, which only work best at certain altitudes, aerospikes adjust automatically, making rockets more efficient.

This allows rockets to fly more efficiently from launch to space, carrying more satellites and equipment while keeping costs down.

According to the firm, Pangea is the first company in the world to successfully fire an aerospike engine using sustainable methane and oxygen propellants, and its flagship ARCOS engine is on track to become the first flight-ready reusable aerospike.

The company is also advancing other breakthrough propulsion programmes – from leading the design of very high-thrust engines with the European Space Agency to pioneering in-space mobility systems, cementing its role at the forefront of Europe’s space ambitions.

Pangea Propulsion CEO, Adrià Argemí, said: “We had a competitive process for our Avionics contract. We were impressed by the customer-first focus of the Aurora Avionics team and their NewSpace specific technology.

Europe needs companies to join forces to accelerate access to space and stay competitive — agreements like this are how we make it happen.”

“We are already enjoying working with the team and expect this contract to be the start of a long collaboration.”

Based at the Royal Observatory in Edinburgh, Aurora Avionics was founded in 2023 by aerospace engineers Oren Smith-Carpenter and Rowland Fraser, both of whom previously worked at launch vehicle company Orbex.

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Most recently, the company celebrated the appointment of Commercial Lead Myles Bax, who will play a key role in driving international engagement and supporting the next stage of fast-paced growth.

Myles Bax, Commercial Lead at Aurora Avionics said: “This deal is a real inflection point for our business.

“It is testament to the vision of Oren and CTO Rowland Fraser that we are now in a position to land significant contracts with leading players in the small launch sector.

“Aurora Avionics has gone from strength to strength since we launched in 2023. Securing a partnership with a market leader like Pangea is a huge achievement for our team and a clear signal of the opportunities ahead.”