Mitsubishi gets subsidy from Japan to develop its own orbital tug

The Japanese aerospace company Mitsubishi today announced that Japan’s Space Strategic Fund has awarded it a subsidy of an undisclosed amount to its develop its own orbital tug.

The goal is to develop an OTV [orbital transfer vehicle] that can respond flexibly to user needs, navigate between orbits, and load and release payloads in space without being limited to specific applications or transport routes. The company also aims to verify the feasibility of autonomous rendezvous, proximity operations and docking (RPOD) using physical AI and robotics for the safe and effective capture, handling and release of payloads in space.

The Space Strategic Fund was created by the Japanese government in 2023 as a ten year $6.6 billion program to encourage the growth of a private Japanese space sector, to essentially transition Japan from a government space program run and owned by its space agency JAXA to a independent and competing private sector, following the capitalism model.

That fund however was given to JAXA to manage, and so far it appears it has not moved aggressively to promote an independent sector. Inside, the awards it has given out so far have mostly been to either fund its own programs, or help its big space partners, such as Mitsubishi. This could change of course as privately-owned spacecraft begin garnering customers outside of JAXA. It is however taking a long time, and meanwhile Japan’s space industry continues to trail badly both China and India, and even South Korea. While these Asian companies are developing multiple rockets and spacecraft, Japan presently has no operational rockets, and its commercial space sector is barely alive.

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Japanese company NEC initiates its own orbital tug project

Having won a grant from Japan’s $6.6 billion strategic fund (designed to encourage private enterprise in space), the Japanese company NEC Corporation has now begun work on its own commercial orbital tug, which it dubs an Orbital Transfer Vehicle (OTV).

Moving forward, NEC plans to conduct market feasibility studies, conceptual design, and demonstrations for OTVs by the end of fiscal year 2027 to clarify the required functions and other specifications. Following this, NEC plans to begin development of a demonstration model in fiscal year 2028, with the goal of launching it and conducting in-space demonstrations in fiscal year 2032, and aims to bring the technology to practical use in the future.

While the overall goal makes sense, the timetable seems far too slow. By the time NEC is ready with its operational OTV in 2032, at least a half dozen tugs will have been in operation for at least three to five years. Already several tugs have flown missions, with several more in the pipeline. Moreover, these companies have found less demand for tugs than expected, and have been repurposing their technology to other purposes.

Regardless, it does appear Japan is beginning to use this strategic fund as intended, to encourage the development of a private space industry, independent of its government space agency JAXA.

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