ESA is laying the foundations for a circular economy in space: from satellite repair to recycling waste in orbit
Over the past two years, the European Space Agency (ESA) has intensified work on the concept of a circular economy in space – a model in which satellites, subsystems, and materials in orbit are no longer “consumables”, but resources that can be repaired, upgraded, reused, and ultimately recycled. The key shift is simple: instead of pushing faulty or obsolete spacecraft into “graveyard” orbits or leaving them to uncontrolled breakup, the idea is to establish a whole ecosystem of in-orbit services that extends equipment lifetime and reduces the amount of debris.
This change is not just an environmental message, but also an economic calculation. The number of satellites in low Earth orbit (LEO) and geostationary orbit (GEO) continues to grow, and with it grow collision risks, insurance costs, and pressure on limited “traffic” and frequency resources. ESA openly speaks about the need to treat orbital space as a finite resource, not as an infinite dump. In that framework, the circular economy in space represents the next step after classic debris-mitigation measures: on the one hand, stricter standards to prevent the creation of fragments, and on the other, the development of technologies that will enable repairs, replacements, and reuse in orbit.
From “Zero Debris” goals to a circular orbit
In recent years, ESA has strongly emphasized the “Zero Debris” approach, aiming to significantly limit the creation of space debris in valuable orbits and by 2030 achieve a “debris-neutral” goal for its future missions and activities. That policy, supported by internal requirements and the broader “Zero Debris Charter” framework, sets an ambition: every new mission must be designed so that it does not leave a problem for future generations.
But even with the strictest standards, a large amount of inactive satellites and rocket stages already exists in orbit, and the expected growth of constellations means that the launch tempo will be hard to slow in the foreseeable future. That is why ESA increasingly stresses that long-term sustainability is impossible without moving from the linear “launch–use–discard” model to a circular model in which valuable parts are kept in orbit. In practice, that means developing in-orbit servicing, then in-orbit assembly and manufacturing, and finally recycling – so that as little material as possible returns as waste, and as much as possible is turned into feedstock for new structures.
SysNova campaign: six months for missions of the future circular economy
A concrete basis for that shift was provided by ESA’s campaign “System Studies for the Circular Economy in Space”, carried out through the Open Space Innovation Platform (OSIP) within the SysNova program, which relies on competitive “technology challenges” and system studies to map realistic options for future missions. Through the campaign, industry and academia were invited to propose concepts and systems that can deliver three key capabilities: refurbishment and upgrading of existing satellites, manufacturing and assembly of large structures in orbit, and recycling debris into useful materials.
The result was four pre-Phase A studies, conducted in a six-month cycle, which covered different “points” of the orbital economy – from low orbit, through geostationary, to specialized orbits suitable for recycling. The teams presented their results on 27 February 2025 at ESA’s research center ESTEC in Noordwijk in the Netherlands, in a format that encouraged exchange of findings and the establishment of future partnerships.
At ESA, they summarized the message without unnecessary superlatives: the studies showed that in-orbit servicing, manufacturing, and recycling are no longer just laboratory experiments, but concepts that can form the foundation of a future circular economy in space – provided that standards, compatible architectures, and business models are developed.
IRUS: a service spacecraft that changes the “rules of the game” in LEO
The most concrete short-term advance from the campaign is IRUS (In-orbit Refurbishment and Upgrading Service) – a mission concept led by Astroscale, with partners such as BAE Systems and DHV Technology. The idea is to develop a servicing spacecraft (“servicer”) that can autonomously approach a client satellite in low orbit, dock safely, and then use robotic arms to replace critical components.
According to publicly available study summaries, the servicing spacecraft relies on the technological “heritage” of Astroscale’s platforms and experience in in-orbit servicing, and foresees modular containers with components that can be removed and replaced. Typical target components mentioned include onboard computers, reaction wheels, batteries, and solar panels – parts whose failure often means an early end to a mission, even though the rest of the system may remain functional.
A key assumption, however, is that satellites are designed with future servicing in mind. That includes standardized interfaces, access points, the ability to handle tools in microgravity, and architectures that tolerate partial replacement without “bringing down” the entire system. Otherwise, a servicing mission becomes an expensive improvisation. That is why the IRUS study, alongside the technical design, strongly emphasized the commercial case: according to consortium estimates, the market for satellite refurbishment and upgrading in the 2030–2040 period could be large enough to justify development, but primarily for satellites that are designed from the start to be “serviceable”.
In January 2026, Astroscale UK announced that it had received an ESA Phase A contract worth 399 thousand euros for further development of the IRUS concept. The statement says the goal is to produce a more detailed design and further verify the mission’s technical feasibility and business rationale. In the same release, Ross Findlay from ESA is quoted, highlighting that demonstrating in-orbit refurbishment is a key step toward a circular economy in space, with an emphasis on reducing debris and extending satellite lifetime.
GEO as a “strategic zone”: LOOP and the question of standards
The second concept from the campaign, LOOP (“Preparing the foundations of circular on-orbit economy”), focuses on geostationary orbit – an area that hosts high-value, long-lifetime communications satellites, but where every maneuver and every service is logistically complex and expensive. The project was coordinated by Growbotics Space with industrial partners, focusing on the development of servicing “kits” and modular solutions for repairing and refurbishing key subsystems, including electric propulsion, power processing units, and electric thruster equipment.
GEO is specific for at least two reasons. First, it is an orbit that is economically extremely important because of continuous coverage of areas on Earth. Second, the spatial resource is limited: GEO slots and the associated frequencies are part of a complex regulatory and market framework. In that context, in-orbit servicing and upgrading are not only a technical project, but also a matter of standardizing interfaces and reaching business agreements among operators, manufacturers, and service providers.
LOOP, according to available descriptions, tried exactly that: to define principles and architectures that would allow GEO satellites to be designed as platforms that can be repaired and refurbished, instead of being “migrated” to graveyard orbit after losing functionality. Such an approach could potentially reduce the need for replacement launches, and also open a market for new services – from delivering spare parts to precise robotic interventions on subsystems.
ROBOFAB: manufacturing large structures in orbit as a prerequisite for new infrastructure
The third project, ROBOFAB (Robotic Fabrication for Space Applications) by KINETIK Space, targets a problem familiar to all space mission designers: the largest systems are often limited by the dimensions of the launch vehicle. Large antennas, solar “farms”, sails, telescope reflectors, or massive structures for future commercial and scientific platforms today must be launched in a folded state and then deployed after launch – with risks of mechanical failures and strict mass and volume constraints.
ROBOFAB proposes a different path: a satellite equipped with robotic arms and tools for shaping carbon tubes and with 3D printing, capable of “printing” and assembling structures in orbit that would be impractical to launch from Earth. In practice, that could mean launching a “factory” into orbit that makes parts from standardized feedstock and assembles them into functional objects, from large antennas to energy structures.
Although this is often described as a technological leap, in ESA’s logic ROBOFAB fits into the circular economy: if manufacturing and repair can be done in orbit, then the need for constant launching of finished components is reduced. In the long run, such a capability also opens the path toward recycling – because feedstock could come not only from Earth’s industry but also from processed orbital waste.
Recycling Space Plant: a solar furnace as an answer to growing orbital debris
The most ambitious long-term concept of the campaign is Recycling Space Plant, led by Thales Alenia Space with support from the PROMES laboratory of CNRS. At the core of the idea are dedicated recycling “plants” in orbit, equipped with a solar furnace for melting materials. The concept is tied to Sun-synchronous orbit, where a large number of observation satellites operate and where the logistics of collecting discarded objects is one of the key open questions.
The study starts from reality: a lot of material already exists in orbit – aluminum, titanium, composites, electronic modules, and structures – which are energy- and cost-intensive to manufacture and launch, and after mission end often become a passive hazard. Recycling Space Plant aims to close that loop: instead of merely removing debris, it is turned into feedstock for new manufacturing in orbit.
Publicly released executive summaries show that the team considered several fundamental challenges: how to sort and prepare materials for melting in vacuum, how to manage the system’s energy and heat, which processes to choose for different alloys and composites, and how to design future satellites so that they are “recyclable” – meaning their materials can be separated and reused. Those documents also mention a long-term horizon: development could proceed through consolidation studies and then Phase A activities, with a vision of more fully closing the material loop in space in the period after the 2040s.
ESA’s selection: a combination of short-term demonstration and long-term systemic impact
After evaluating the results, ESA selected two directions for further refinement in its Concurrent Design Facility (CDF) sessions: IRUS as a concept with potential for a relatively quick demonstration of refurbishability and upgrading in orbit, and Recycling Space Plant as a long-term innovation that could change the way orbit is used as an “industrial space”.
That combination reflects a strategy increasingly seen in European programs: first prove that servicing can be done reliably and be commercially sustainable, and then build capabilities for more complex interventions – manufacturing, assembly, and recycling. In other words, without reliable servicing it is hard to imagine autonomous factories or recycling plants in orbit, because all those structures require maintenance, replacements, and flexibility.
What a circular economy in space means for industry and public policy
For European industry, a circular economy in space opens several layers of competitiveness. The first is technical: developing robotic servicing, standardized interfaces, and modular satellites could become Europe’s market “signature”, similar to how certain niches in telecommunications or Earth observation once were. The second is regulatory: if serviceability and recyclability standards are built into public tenders and programs, manufacturers will have an incentive to change satellite design. The third is geopolitical: in conditions of growing commercialization, orbit is increasingly shaped by rules of access and responsibility, so the ability to maintain infrastructure in orbit becomes an element of strategic autonomy.
From a public-policy perspective, three themes intersect here. First, space traffic management and safety: less debris means fewer risks and less need for avoidance maneuvers that consume fuel. Second, the environmental aspect on Earth: if satellite lifetimes are extended and the number of launches reduced, the need for manufacturing and logistics chains linked to launches is also reduced. Third, innovation policy: a circular economy in space requires interdisciplinary development – robotics, materials, thermal systems, autonomy, and also legal frameworks for liability and ownership of “secondary raw materials” in orbit.
Next steps: contracts, new campaigns, and European collaborations
After the campaign, ESA announced continuation through consolidation contracts and preparation of mission proposals. Public information shows that after the SysNova cycle ended, Phase A contracts were awarded for in-orbit refurbishment missions (ORUM), and the agency is also considering the possibility of a new campaign that would track industry interest and technological progress. At the same time, potential collaborations with the European Commission are mentioned, which through its own programs monitors the development of in-space operations and services.
In that sense, a circular economy in space is no longer an isolated project of one department, but part of a broader shift toward sustainable infrastructure in orbit. If, over the next decade, it can be proven that critical subsystems can be reliably replaced in LEO and that serviceability standards become common, then ideas such as orbital recycling plants and robotic manufacturing of large structures will move from studies into engineering plans. The biggest unknown remains the pace: technological steps are large, and business models are only emerging. But the direction is clear – orbit is increasingly seen less as a place of one-time consumption and more as a space where resources are preserved, refurbished, and reused.
Sources:- European Space Agency (ESA) – OSIP and the call for the space circular economy campaign ( link )- ESA Clean Space blog – “Space Circular Economy” vision and explanation of the in-orbit services ecosystem ( link )- ESA Clean Space – overview of activities and studies toward a circular economy in space ( link )- ESA Nebula / Activities Portal – IRUS (In-orbit Refurbishment and Upgrading Service) study summary ( link )- ESA Nebula – executive summary of the IRUS study (PDF) ( link )- ESA Nebula / Activities Portal – Recycling Space Plant study summary ( link )- ESA Nebula – executive summary of Recycling Space Plant (PDF) ( link )- Astroscale – announcement about ESA Phase A contract for IRUS (13 January 2026) ( link )- European Space Agency (ESA) – “Zero Debris Charter” and debris-neutral target by 2030 ( link )
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