# Building Green Propulsion Systems for Small Satellites in India

> How young entrepreneurs are developing cost-effective, environmentally friendly thruster technology to compete in the global aerospace market.

[Watch on YouTube](https://www.youtube.com/watch?v=U2OsR_jQg90)

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## The Problem with Traditional Satellite Propulsion

For decades, satellite manufacturers have relied on hydrazine-based propellants to power the thrusters that keep spacecraft on course. These propellants are proven, efficient, and well-understood. But they come with significant drawbacks: hydrazine is highly toxic, requiring elaborate safety protocols during handling and testing. Several European nations have moved to ban its use, and UN sustainability goals are pushing the aerospace industry toward greener alternatives.

The shift away from hydrazine creates both a challenge and an opportunity. Satellite manufacturers—especially the growing cohort of private companies building small satellites for communications, Earth observation, and scientific missions—need propulsion systems that are safer, cheaper, and just as reliable. Traditional aerospace giants have been slow to respond, in part because pivoting large-scale production lines is complex and expensive. That gap has opened the door for startups to develop next-generation thruster technology from the ground up.

Dream Aerospace Technologies, an Indian startup founded by recent aerospace engineering graduates, is developing a green monopropellant thruster designed specifically for small satellites. Their solution targets the constraints faced by satellite builders who need low-thrust, lightweight systems that can be integrated easily and operated without hazardous materials. The technology addresses not only environmental and safety concerns but also the practical realities of cost and performance in a competitive market.

## From Balloon Payloads to Rocket Engines

The founders' path to aerospace entrepreneurship began during their undergraduate studies. While still in their first year of engineering school, they participated in a NASA competition to design and launch scientific payloads aboard high-altitude balloons. These balloon satellites—miniature sensor packages carried to altitudes of 30 to 35 kilometers—measure atmospheric parameters for weather and climate research. Out of hundreds of applicants worldwide, their experiment was selected as one of 100 to fly on NASA's Cubes in Space program, earning recognition from the International Ballooning and Rocketry Federation.

That early exposure to satellite systems sparked deeper interest in propulsion. By their final year, the team had designed and built a miniature 300-newton rocket engine running on kerosene and liquid oxygen. The project, funded as part of their degree requirements, gave them hands-on experience with combustion chamber design, fuel injection, and thrust analysis—skills that would prove essential when they turned their attention to commercial satellite propulsion.

After graduation in 2021, the founders faced a common crossroads: accept industry jobs or PhD offers, or risk starting a company. Guidance from aerospace veterans—including former executives from India's BrahMos missile program and mentors at the Indian Space Research Organisation—helped crystallize their focus. The advice was specific: explore low-thrust propulsion options using greener propellants, an area where established players had yet to deliver competitive solutions. That problem statement became the foundation of Dream Aerospace.

## Developing a Proprietary Green Propellant

Dream Aerospace's core innovation is a proprietary monopropellant designated RH-521, developed in partnership with the Energetic Materials Laboratory at IIT Kanpur. Unlike bipropellant systems, which require separate fuel and oxidizer tanks plus complex plumbing, monopropellants simplify the propulsion architecture. This reduces weight, lowers manufacturing complexity, and makes integration into small satellites more straightforward—critical advantages when every gram counts and every cubic centimeter is contested.

The propellant is designed to deliver specific impulse (ISP)—a measure of propulsion efficiency—that rivals or exceeds hydrazine, while eliminating toxicity. It operates at pressures below 50 bar, avoiding the need for heavy, high-pressure storage tanks that would negate the mass savings elsewhere in the system. This pressure threshold makes the technology suitable for cube satellites and other small spacecraft where volume and mass budgets are severely constrained.

The thruster platform is scalable across a range of mission profiles. Depending on the satellite's orbital maneuvers—station-keeping, orbit raising, deorbiting—the system can be configured to provide thrust from one newton up to twenty-two newtons. This flexibility allows satellite manufacturers to specify propulsion based on mission requirements rather than adapting their spacecraft to fit available thrusters.

> **KEY** — Monopropellant systems use a single chemical that decomposes to produce thrust, eliminating the need for separate fuel and oxidizer. This simplifies design, reduces weight, and lowers cost—crucial for small satellite applications.

## Targeting the B2B Satellite Market

Dream Aerospace's primary customer base is not government space agencies but private satellite manufacturers. In India alone, four or five established startups are now building satellites for commercial applications, and dozens more operate globally. These companies typically outsource propulsion systems because developing thrusters in-house diverts engineering resources from their core competencies in electronics, communications, and payload integration.

This business-to-business model offers faster paths to revenue and clearer product-market fit than long government procurement cycles. Satellite builders need plug-and-play propulsion modules with well-defined interfaces, predictable performance, and reliable supply chains. By positioning the thruster as a standardized component, Dream Aerospace can serve multiple customers across different mission types without extensive customization.

Internationally, companies like Dawn Aerospace have demonstrated the viability of this approach, delivering propulsion systems that satellite manufacturers integrate directly into their platforms. Dream Aerospace studies these competitors closely, identifying areas where existing solutions fall short. Many international thrusters use bipropellant systems that add weight and complexity. Others require storage pressures exceeding 50 bar, which increases tank mass and cost. By focusing on monopropellant chemistry and moderate pressure requirements, Dream Aerospace aims to offer a lighter, simpler, and more cost-effective alternative without sacrificing performance.

## Navigating the Funding Landscape

Hardware startups, especially in aerospace, face steep capital requirements. Developing a rocket thruster demands specialized materials, precision machining, high-temperature test facilities, and iterative prototyping—all expensive. For founders without family wealth or industry connections, bootstrapping becomes essential. Dream Aerospace began by offering technical workshops and courses in rocket propulsion and computational fluid dynamics, teaching third- and fourth-year engineering students how to design rocket engines. These workshops generated initial revenue of several hundred thousand rupees, enough to fund early experiments and prototypes.

The next milestone came through institutional support. The startup secured incubation at the SIIC facility at IIT Kanpur, gaining not only workspace and mentorship but also credibility. Association with a respected research institution signals to customers, investors, and government agencies that the technology has undergone scrutiny and passed technical due diligence. That credibility opened doors to formal grant programs.

Dream Aerospace has now secured multiple non-dilutive grants totaling several tens of lakhs. The Tamil Nadu government's T-Seed program awarded ten lakhs for product development after a months-long selection process involving application review, boot camps, and pitch evaluations. Another ten-lakh grant came through the NIDHI PRAYAS scheme administered by IIT Kanpur, specifically targeting proof-of-concept development. The Software Technology Parks of India (STPI) provided additional funding through its TIDE 2.0 program, structured as a compulsorily convertible preference share investment facilitated by Pontaq Venture Capital.

> **KEY** — Non-dilutive grants allow startups to develop technology without giving up equity. Programs like NIDHI PRAYAS, T-Seed, and TIDE 2.0 provide critical early-stage capital for hardware startups that need funds for prototyping before they can demonstrate commercial traction.

The startup has also won prize money from competitions, including a joint India-Canada innovation challenge and a pitch event hosted by IIT Bombay. Each of these funding sources addressed specific development stages—initial R&D, prototype fabrication, testing infrastructure—allowing the team to reach Technology Readiness Level 4, where the basic technology has been validated in a laboratory environment and is progressing toward field demonstrations.

## The Defense and Aerospace Opportunity in India

India's defense budget historically allocated nearly half of its procurement spending to imports. That figure has declined as government programs like iDEX (Innovations for Defence Excellence) and policy initiatives such as Atmanirbhar Bharat push for domestic manufacturing. Still, more than 30 percent of defense procurement comes from abroad, representing billions of dollars in potential market opportunity for Indian startups that can deliver competitive alternatives.

Aerospace and defense present unique advantages for startups compared to legacy contractors. Established firms operate with rigid production schedules, long lead times, and bureaucratic inertia that makes rapid iteration difficult. Startups, by contrast, can pivot quickly in response to customer feedback, adjust designs to meet emerging requirements, and adopt new manufacturing techniques without reengineering entire product lines. This agility is particularly valuable in sectors like satellite propulsion, where mission requirements vary widely and customization is common.

Government programs are structured to exploit this startup advantage. iDEX, operated by the Ministry of Defence, posts problem statements directly from the armed forces and offers grants ranging from one crore to ten crores for companies that can develop solutions. These challenges cover everything from drone technology to battlefield communication systems to propulsion for unmanned platforms. Startups that solve these problems gain not only funding but also potential procurement contracts and validation from end users.

For entrepreneurs entering this space, the key is to begin with a well-defined problem validated by conversations with actual customers—satellite manufacturers, defense labs, or space agencies. Too often, founders develop technology in search of a problem, only to discover late in the process that the market doesn't exist or that incumbents already offer satisfactory solutions. Market research, customer interviews, and early prototyping with user feedback prevent these costly missteps and ensure that scarce development resources are directed toward genuine needs.

## Building a Team and Scaling Operations

Dream Aerospace currently operates with a lean team: five full-time employees focused on core R&D, testing, and business development, plus seven part-time contributors who provide specialized expertise in areas like materials science, manufacturing, and regulatory compliance. This hybrid structure keeps fixed costs manageable while ensuring access to the breadth of skills needed to bring a complex aerospace product to market.

As the technology advances toward flight-ready systems, scaling the team will be necessary. Hiring in aerospace requires finding engineers comfortable with high-stakes testing, rigorous documentation, and the long development cycles typical of space hardware. Equity compensation, clear technical milestones, and the opportunity to work on cutting-edge propulsion technology help attract talent even when early-stage salaries can't match those of established aerospace firms.

Partnerships with academic institutions also extend the team's capabilities. Collaboration with IIT Kanpur's Energetic Materials Laboratory provides access to specialized equipment, testing facilities, and faculty expertise that would be prohibitively expensive to replicate in-house. These relationships accelerate development timelines and lend additional technical credibility to the startup's work.

## Advice for Aspiring Aerospace Entrepreneurs

Breaking into aerospace entrepreneurship without family wealth or industry connections is challenging but increasingly viable. The first step is to validate the problem. Speak with potential customers—satellite manufacturers, defense contractors, research institutions—and confirm that the pain point you're addressing is real and that they would pay for a solution. Many technical founders skip this step, assuming that impressive engineering will automatically find a market. It rarely does.

Next, bootstrap where possible. Offering consulting services, teaching technical workshops, or doing contract R&D generates early revenue without diluting equity or taking on debt. This self-sufficiency buys time to refine the technology and build a track record before seeking institutional funding.

When ready to scale, pursue non-dilutive grants aggressively. Programs like NIDHI PRAYAS, TIDE, T-Seed, and iDEX exist precisely to fund early-stage hardware development. They require detailed applications, pitch presentations, and milestone tracking, but the capital comes without giving up ownership. Incubation at a recognized institution—IIT, NIT, or specialized aerospace hubs—provides not only infrastructure but also mentorship and network access that accelerates progress.

Finally, be prepared for family resistance, especially as a first-generation entrepreneur. Parents who see engineering degrees as pathways to stable jobs may view startup risk as irresponsible. Demonstrating traction—grants awarded, prototypes built, customers engaged—can shift that perspective. So can framing the work as contributing to national priorities like Atmanirbhar Bharat or sustainable aerospace. In many cases, parental financial and emotional support becomes critical during the early years when revenue is uncertain.

> **ASIDE** — First-generation entrepreneurs often face skepticism from families unfamiliar with startup culture. Early wins—grants, incubation acceptance, customer pilots—build credibility and can turn skeptics into supporters.

## Key takeaways

- Traditional hydrazine-based satellite propellants are toxic and face regulatory pressure, creating demand for safer, greener alternatives.
- Monopropellant systems simplify thruster design by eliminating the need for separate fuel and oxidizer, reducing weight and complexity for small satellites.
- The B2B satellite market offers faster revenue paths than government contracts, as private satellite manufacturers routinely outsource propulsion systems.
- Non-dilutive grants from programs like NIDHI PRAYAS, T-Seed, TIDE, and iDEX provide critical early-stage capital for aerospace hardware startups in India.
- India's defense sector still imports over 30% of its procurement, representing significant opportunity for startups that can deliver cost-effective domestic solutions.
- Bootstrapping through technical workshops, consulting, or contract R&D allows hardware founders to self-fund initial prototypes before seeking institutional support.
- Validation from customers and mentors—not just impressive engineering—determines whether an aerospace startup finds product-market fit.


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