The new company expects to receive a first order from the Swedish Space Agency early in 2001 to demonstrate the new fuel and will start development of satellite motors using the new propulsion system.

Both Swedish Space Corporation and Volvo Aero will hold a 50% interest in ECAPS (ECological Advanced Propulsion Systems).

With their combined know-how of satellite systems and rocket engines, the two companies say they have the expertise required to develop an attractive and competitive alternative, called HPGP 101 (High Performance Green Propellant), as a replacement for today's predominant fuel "hydrazine."

Additional plans include the development of a complete propulsion system, with rocket engines, valves, lines and tanks using HPGP 101.

The current fuel, hydrazine, is hazardous and carcinogenic. Consequently, handling is controlled by strict regulations. The new fuel, HPGP 101, is based on a patent owned by ECAPS.

"The foremost advantage of this fuel is that it is environmentally friendly. Moreover, the new "green" fuel is neither explosive nor particularly hazardous, which means that it can be handled with rubber gloves," says Claes-G�ran Borg, Chairman of ECAPS.

"It is expected that this will give substantial cost savings as a result of reduced handling expenses." In addition to the handling advantages, the new fuel is characterized by significantly higher performance than hydrazine.

After the technology has been tested fully, ECAPS will market and sell the new fuel and propulsion system for use in smaller satellites in low earth orbit. The propulsion system will position a satellite in the correct orbit and heading in the right direction.

"A preliminary estimate of the total market for such a propulsion system is between SEK 500 million to SEK 1 billion from 2005 to 2015," says Ulf Palmn�s, President of ECAPS.

ECAPS expects an order from the Swedish Space Agency in the first quarter of 2001 valued at about SEK 11 million for a technology demonstration. Initially, development will take place at the Swedish Space Corporation and Volvo Aero. Claes-G�ran Borg, president of the Swedish Space Corporation, is Chairman of ECAPS. Ulf Palmn�s from Volvo Aero's Space Division is the President of ECAPS.

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