Kreios Space: Pioneering Very Low Earth Orbit with NATO’s Backing

In an exciting development for the aerospace industry, NATO has recently invested in Kreios Space, a Spanish startup founded in 2021 by six ambitious graduates. Their mission? To revolutionize satellite technology by placing satellites closer to Earth than ever before.

The Challenge of Low Earth Orbit

Traditionally, orbiting a satellite within 500 kilometers of Earth has been deemed impractical. The atmosphere at this altitude creates significant drag, causing satellites to lose altitude rapidly. This drag necessitates a massive amount of fuel to maintain orbit, making such missions economically unfeasible. Consequently, the industry has largely focused on higher orbits, leaving the potential of very low Earth orbit (VLEO) unexplored.

To put this into perspective, the Moon is approximately 384,000 kilometers away from Earth. Geosynchronous orbits (GEO), where satellites like SpainsatNG operate, hover at around 35,768 kilometers. Medium Earth orbits (MEO) lie between GEO and 2,000 kilometers, while low Earth orbit (LEO) encompasses altitudes below 2,000 kilometers. VLEO, which sits below 500 kilometers, has remained largely untouched—until now.

Kreios Space’s Innovative Approach

Kreios Space, based in Vigo, Spain, is tackling the challenges of VLEO head-on. The company has developed an innovative electric engine that transforms the very drag that makes these orbits hostile into a source of propulsion. Their target altitudes range from 150 to 400 kilometers.

Francisco Boira, one of the founders, explains the challenge succinctly: “VLEO orbits are not currently used because at these distances there is a lot of aerodynamic drag. To counteract it, huge amounts of fuel are needed, enough to give the satellite an autonomy of days and make it entirely unfeasible.”

The solution? The ABEP (Air-Breathing Electric Propulsion) engine. This groundbreaking technology captures atmospheric air, converts it into plasma, and uses it as propellant, all powered by solar energy. The result is a satellite capable of remaining in orbit for years, without relying on fossil fuels or leaving debris behind.

NATO’s Strategic Investment

In September 2025, Kreios Space secured an €8 million funding round led by the NATO Innovation Fund, a €1 billion private equity fund supported by 24 NATO allies. This investment marks a significant milestone, as Kreios is the first Spanish startup to catch the attention of the Atlantic alliance.

David Ordóñez from the NATO Innovation Fund emphasized the importance of Kreios’s work, stating that their technology represents a breakthrough into an orbit previously considered out of reach. This funding follows an earlier €2.3 million round raised in 2024, bringing the total investment to over €10 million.

Advantages of Very Low Earth Orbit

Operating at VLEO offers numerous advantages. Satellites in this orbit can capture images with three times the resolution of those in higher orbits using the same technology. They also provide direct broadband connectivity to mobile devices without the need for bulky antennas, significantly reducing communication latency to between 2 and 8 milliseconds. In contrast, LEO satellites experience latencies of around 50 milliseconds, while geostationary satellites can take nearly half a second.

Moreover, VLEO orbits are relatively uncrowded and free from the space debris that plagues higher altitudes. Boira points out that this could help mitigate the risks associated with Kessler syndrome, where a single explosion in LEO could trigger a catastrophic chain reaction of collisions. If a Kreios satellite’s propulsion system fails, it would simply descend and burn up in the atmosphere, posing no risk to other satellites or aircraft.

However, there are trade-offs. Operating closer to Earth requires more satellites to achieve global coverage and more energy to maintain altitude. Launch logistics are also more complex, as current providers like SpaceX typically position satellites at a minimum of 500 kilometers. This means that VLEO-bound satellites must be released at higher altitudes and allowed to descend, which could increase costs.

From Classrooms to Cutting-Edge Facilities

The six founders of Kreios Space—Adrián Senar, Jan Mataró, Francisco Boira, Adrià Barceló, Max Amer, and Francisco Bosch—were classmates at the Polytechnic School of Catalonia. Their shared vision led to the establishment of the company in 2021, when they were all under 25 years old. They found essential institutional support in Galicia, which helped them navigate the early stages of their venture.

Today, Kreios Space operates from the free zone of Vigo and is preparing to move to new facilities in Porto do Molle, Nigrán. These state-of-the-art facilities will house a clean room and a vacuum chamber, essential for testing precision components under conditions that simulate outer space.

Future Prospects and Applications

The recent funding will be directed towards launching the first two test satellites, including the inaugural in-orbit demonstration of the ABEP engine. If successful, the next phase will involve deploying commercial constellations focused on Earth observation and direct-to-device communications.

The potential applications are vast. High-resolution Earth observation can benefit agriculture, resource management, and defense. In Spain, Kreios is already collaborating on an early fire-detection project called Ícaro, in partnership with the University of Vigo and Telespazio Ibérica.

The communications capabilities of VLEO satellites could also prove invaluable, maintaining functional networks even when ground infrastructure fails. This capability would have been particularly beneficial during Spain’s recent nationwide blackout or the devastating floods in Valencia.

Kreios Space, still in its infancy at under five years old, has already made significant strides. With proprietary technology, NATO backing, and a satellite on the verge of launch, this young team of Spanish engineers is poised to make a lasting impact on the aerospace industry.