Orbital Operations Wins Pentagon Funding to Test Cryogenic Space Tug
Orbital Operations received up to $35 million from the Defense Department under a prototype agreement to demonstrate its Astraeus cryogenic maneuvering vehicle in orbit. The Long Beach startup also raised a $7 million seed extension, bringing its total funding to roughly $16 million. Astraeus is intended to keep liquid hydrogen and oxygen cold for extended periods, maneuver quickly, and support logistics, tactical, or refueling missions.
Orbital Operations, based in Long Beach, California, secured a prototype agreement worth as much as $35 million from the Defense Department for an orbital demonstration of Astraeus. The company also added $7 million in seed extension funding led by DTX Ventures, lifting total backing to about $16 million.
Astraeus is meant to use onboard refrigeration to limit boil-off of liquid hydrogen and oxygen, allowing longer stays in orbit than a disposable stage. Its design targets rapid maneuvering, payload delivery to higher orbits, return to low Earth orbit for refueling, and mission-specific logistics, tactical, or refueling roles. The roughly 13-person team plans more hot-fire tests, refrigeration work, and qualification before flight.
The award could accelerate reusable in-space logistics, potentially affecting military satellite operators, commercial launch firms, and insurers by making orbital servicing and refueling more feasible. If such vehicles mature, they may extend satellite lifetimes and enable faster responses to orbital events, though costs, safety, and debris risks would shape public outcomes. The startup’s growth may also influence local hiring and investor interest in space infrastructure.