
CHIBA, Japan (Oct.7) – Pale Blue has been granted additional funding for its project under the Ministry of Education, Culture, Sports, Science and Technology’s “Small/Startup Business Innovation Research Phase 3 (SBIR-3) program.” A special stage-gate review committee held in mid-September 2026 to evaluate this supplemental budget allocation, ultimately approving the additional funds for the Phase 3 in-orbit demonstration This additional funding was awarded ahead of the scheduled stage-gate review for Phase 3 transition.
Announced in February 2024, the SBIR Phase 3 program is an initiative to develop and demonstrate miniaturized water ion thrusters and Hall thrusters in space. The project is divided into three program phases. Phase 1 concluded with the successful basic system design and ground-based verification of each thruster. During the currently ongoing Phase 2, detailed system design and comprehensive ground testing are underway. The development of the demonstration unit has entered its final stage on schedule for delivery, with the transition to Phase 3 and the in-orbit demonstration slated for FY2027.
In this review, the committee validated the in-orbit technology demonstration plan and additional factors based on the status of Hall thruster development in Phase 2, alongside the company’s sales strategy for commercial implementation. Backed by this additional grant, Pale Blue will further accelerate the Phase 3 in-orbit demonstration of the Hall thruster as well as its subsequent commercialization.
Project Name: Small/Startup Business Innovation Research Phase 3 (SBIR-3) program, Space Field
Project Theme: Development and Demonstration of Technologies Needed for Reducing Space Debris
Project Name: Development and Demonstration of Miniaturized Water Ion Thrusters and Hall-Effect Thrusters for Deorbit Maneuvers and Collision Avoidance in Satellites
Additional Funding Amount: To be announced alongside the results of the stage-gate review regarding the transition to Phase 3
Reference Articles:
Pale Blue Passes Stage-Gate Review for SBIR 3 Project Phase 2
https://pale-blue.co.jp/news/1433/
Pale Blue approved to advance to Phase 2 of MEXT’s SBIR-3
https://pale-blue.co.jp/news/959/
Pale Blue develops and manufactures propulsion systems (engines) for small satellites, providing highly reliable solutions to satellite integrators and operators worldwide. Since its founding in 2020, Pale Blue has successfully achieved in-orbit operations for a number of propulsion systems, building a proven track record of performance in space. Under rigorous quality control and efficient production processes, Pale Blue has established a mass production system at its cutting-edge in-house facility to meet the growing global demand. Pale Blue is committed to creating mobility that is core to the space industry, leading the next generation of space development, ranging from Low Earth Orbit to deep space.
Website:https://pale-blue.co.jp/