NordSpace Wins $1M from Canada’s Space Agency to Build the Country’s First Homegrown Satellite Thruster

A Canadian space company has just taken a big step toward making sure the satellites this country launches in the future are powered by Canadian technology. NordSpace, based in Markham, Ontario, announced on November 12, 2026 that the Canadian Space Agency has awarded it a $1 million contribution to develop Zephyr-EP, the first commercial electric propulsion system for small satellites designed and built in Canada.

The funding comes through the agency’s Space Technology Development Program, and it backs a piece of hardware that sits at the heart of how modern satellites work. Electric propulsion is what keeps a satellite in the right orbit, steers it away from other objects, and brings it down safely at the end of its life. Until now, Canada has had no commercial company making this equipment, which meant Canadian satellite operators had to buy it from foreign suppliers, sometimes ones subject to export restrictions.

What Zephyr-EP actually is

Zephyr-EP is a Hall effect thruster, a type of electric propulsion that uses an electric field to accelerate propellant and produce thrust. It is far more fuel efficient than chemical propulsion, which is why it has become the standard choice for the large commercial constellations now filling low Earth orbit. The thruster can run on either xenon or krypton propellant, giving operators flexibility on cost and supply, and it is built for a long working life so it can support missions that last years.

One of the more practical design choices is that the thruster is clusterable. That means several units can be grouped together when a larger satellite needs more thrust, while a single unit serves a small satellite. NordSpace says Zephyr-EP is the lead product in a wider family it is developing, with variants planned for microsatellites and larger platforms, plus a chemical thruster to sit alongside the electric line.

The company is building the thruster at its Space Systems Lab in Markham, which has thermal vacuum and vibration test facilities plus an ISO 5 clean room. The site can produce up to one small satellite per month. NordSpace is working on the propulsion physics with Dr. C. Malardier-Jugroot, a professor in the Department of Chemistry and Chemical Engineering at the Royal Military College of Canada.

Why Canada needs its own thruster

The timing matters because low Earth orbit is getting crowded fast. Constellations have grown from tens of satellites to tens of thousands, and every one of those spacecraft needs propulsion to hold its orbit against atmospheric drag, dodge other objects, move between orbital layers, and deorbit cleanly when its job is done.

Canada has been in an awkward spot on this front. The country builds satellites and has ambitious plans for its own constellations, yet the propulsion systems those satellites depend on have had to come from abroad. That creates a strategic problem: a supplier in another country can be cut off by export controls, delays, or political friction, and a Canadian constellation would have no domestic fallback.

NordSpace frames the point bluntly. "To be a true spacefaring nation, Canada needs to design, build, and own the enabling technologies that let its satellites reach orbit, stay there, and come home safely," said Rahul Goel, the company’s founder and CEO. "There is no Canadian company today supplying electric propulsion for small satellites, and that gap sits directly in the path of every serious sovereign constellation this country wants to build, including NordSpace’s own. Zephyr-EP closes that gap."

A pathfinder already flew

Zephyr-EP is not starting from zero. NordSpace says the electric propulsion technology aboard Terra Nova, the company’s first satellite, was a smaller pathfinder article built in house that proved the team could design and build this kind of hardware. Terra Nova was built on the company’s Athena spacecraft bus, and it continues to operate in orbit after its inaugural launch.

The company also says every spacecraft bus it produces going forward will come standard with a Zephyr-EP, starting with Athena and extending to the Aquila bus now in development. The thruster is designed to serve both commercial and defence missions, and NordSpace says it will also be available to other Canadian operators who currently have no domestic option.

Part of a bigger Canadian space plan

The thruster award fits into a much larger picture NordSpace has been building. The company describes itself as Canada’s only vertically integrated space missions company, meaning it works across the whole chain: launch vehicles, spacecraft, and the spaceport they fly from. Its Tundra light lift vehicle and the Tempest medium lift launcher now in development are powered by the Hadfield-150 engine, which the company calls Canada’s first orbital class liquid rocket engine. It also operates the Atlantic Spaceport Complex in St. Lawrence, Newfoundland and Labrador.

"Combined with our Athena and Aquila spacecraft buses, our Tundra and Tempest launch vehicles, and the Atlantic Spaceport Complex, we are putting in place every ingredient of a real Canadian space economy, where Canadian satellites launch on Canadian rockets from Canadian soil," Goel said.

The announcement does not give a date for the first Zephyr-EP flight, and it would be a mistake to read one into it. Hardware like this goes through ground testing, qualification, and integration before it flies, and the company has not published a timeline.

For Canadians watching the space sector, the story is less about a single $1 million cheque and more about what it represents. Canada has talked for years about space sovereignty, about not depending on other countries for the tools it needs in orbit. A homegrown thruster is one of the least glamorous and most important pieces of that puzzle, and this week it got its first real backing.

Frequently Asked Questions

What is Zephyr-EP?

Zephyr-EP is a Hall effect electric thruster being developed by NordSpace in Markham, Ontario. It is designed to be the first commercial electric propulsion system for small satellites made in Canada, running on xenon or krypton propellant and built for long missions.

How much funding did NordSpace receive from the Canadian Space Agency?

NordSpace received a $1 million contribution from the Canadian Space Agency under its Space Technology Development Program. The funding supports the development of Zephyr-EP and anchors a broader company investment in Canadian electric propulsion manufacturing.

Why does Canada need its own satellite thruster?

Canada currently has no commercial manufacturer of small satellite electric propulsion, so Canadian operators must buy from foreign suppliers that can be subject to export restrictions. A domestic thruster removes that dependency and supports sovereign Canadian constellations in low Earth orbit.