Italian rocket manufacturer Avio has officially reduced the scope and funding of its Space Transportation System (STS) programme. The decision follows technical complexities encountered during the development of the company's new MR10 and MR60 methalox engines, which were intended to validate technologies for future reusable launch vehicles.
The original project aimed to develop two rocket demonstrators, including a single-stage vehicle and a two-stage version. Avio had initially secured €217.5 million in public funding in June 2022, sourced from Italy's National Recovery and Resilience Plan, the National Complementary Plan, and additional state funds.
Data from the monitoring platform OpenPNRR indicates that approximately €101.1 million, or 46.47 percent of the total budget, had been spent on the programme before the contract was amended. Avio noted that further technical challenges could potentially arise as the project moves toward completion.
Despite the revisions, Avio confirmed that the single-stage flight demonstrator, known as FD1, is fully integrated. Ground testing for the vehicle is scheduled to conclude by the end of 2026. The launch is planned for the Salto di Quirra test range in Sardinia, where the company is currently building a temporary launch complex.






