Japan’s NEC Corporation has launched a project to develop an Orbital Transfer Vehicle (OTV) – a spacecraft designed to transport satellites to their intended orbits after they have separated from the rockets that lift them into space.

Without an OTV, a satellite must use its own engines and fuel to reach its destination. With an OTV, even small satellites without powerful engines can be placed in distant orbits. And OTVs can transport multiple small satellites simultaneously, further increasing their efficiency.

NEC expects OTVs “to make important contributions to accelerating all aspects of space development. Not only will they promote the development of future space economies – such as the utilization of geostationary orbits and cislunar space – but by lowering the barriers to space utilization, they will also encourage the entry of new operators into the sector.”

The company has been selected to receive a grant for this project from the Japan Aerospace Exploration Agency (JAXA) under the heading “Technologies for Realizing Flexible Mobility in Space: (A) Development of Inter-Orbital Transportation Vehicles.”

NEC has spent decades developing and manufacturing spacecraft, including the geostationary communications satellite Kizuna, the lunar orbiter Kaguya and the deep-space probes Hayabusa and Hayabusa2.

Launched in 2003, Hayabusa returned to Earth in 2010 with the first samples from an asteroid (Itokawa), collected from the surface during a touch-and-go operation.

Hayabusa2, launched in 2014, twice landed on a larger asteroid (Ryuga), deployed three rovers, and blasted a hole in the rock to collect subsurface samples. It returned those samples to Earth in a capsule that landed in the Australian outback in 2020.

Based on this experience, NEC plans to conduct market feasibility studies, conceptual design and demonstrations for OTVs by the end of its current fiscal year, which ends in March 2027. Starting next year, the company plans to develop a prototype satellite for launch by 2032.

Soon after that, according to its press release, NEC aims to put the technology into practical use, ideally to “realize missions that deliver social benefits, and deepen research activities aimed at exploring new frontiers.”

The press release is fine as far as it goes, but OTVs go much farther.

As explained by Japan space and defense expert Paul Kallender, senior researcher at Keio University’s Shonan Fujisawa Campus (Keio SFC) west of Tokyo:

“In military space, OTV capability is a leading critical/strategic technology allowing militaries enhanced flexibility and greater range of options to disperse spacecraft into multiple orbits.”

“The most famous OTV vehicle,” Kallender adds, “is the US Space Force’s X-37B space plane. Arguably, the second most famous (or most infamous) OTV is the X-37B’s Chinese dark mirror-doppelganger Shenlong (Divine Dragon).

“NEC’s OTV project is publicly framed as civil space logistics to accelerate satellite deployment and on-orbit services across diverse orbits. However, its core capabilities – multi-orbit transfer, rendezvous and docking, and on-orbit servicing/refueling – are inherently dual-use, with clear relevance to responsive military logistics, satellite inspection, space situational awareness, and future cislunar security operations.”

Schematic diagram: NEC

Writing in the Japan: RMA (Revolution in Military Affairs) Substack, Kallender notes that “In low-Earth Orbits (LEO), OTVs enable: 

  • More and better-placed military Intelligence, Surveillance and Reconnaissance (ISR) satellites, or tactical satellites, or swarms of satellites in proliferated constellations; 
  • More and better-placed on-orbit spy satellites in different orbits to better spy on other satellites;
  • More and better-placed ASAT (attack) or sentinel/bodyguard maneuverable satellites in different orbits to, well, attack or defend against counterparts.

The last of these capabilities is a key enabler for Space Force’s push to develop maneuver warfare capabilities.”

Summing up, Kallender notes that NEC’s OTV is “a critical new enabler for Japan’s military space enterprise because it is being specifically designed for a much higher geostationary orbit and for entry into cislunar space.”

“Cislunar space is the entire area of space encompassing the Earth-Moon system. Cislunar space is, literally, the new high ground of military space.”

In its Mid-term Management Plan 2030, NEC identifies the “new security environment” as a major opportunity, stating that “As the global order transforms, Japan has the potential to emerge as a credible third option. Persistent geopolitical tensions and innovations in AI are driving not only defense market growth, but also a broadening of the security landscape.”

This includes:

  • The blurring of the line between peacetime and contingencies
  • The convergence of civilian and defense technologies and markets
  • The growing importance of digital infrastruture

Japan’s defense build-up plan is driving a 2.5 times increase in the nation’s defense-related market – a major opportunity for NEC. In addition to being a leading-edge satellite developer, the company is one of Japan’s top suppliers of information and communications systems and related software.

NEC plans to “steadily expand its business in priority areas such as cross-domain operational capabilities, command and control, pursuing global expansion through equipment transfers and expanded sales of dual-use products in line with government policy.”

One of the most important of those OTV “missions that deliver social benefits” is national defense.

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