European version of SpaceX's Starship? ESA signs deal for reusable upper stage demonstrator

Two men sit behind a covered table with an ESA sign on it talking to each other.

SYDNEY — The European Space Agency and Avio will work together to develop a reusable rocket upper stage as the agency looks to transform its space launch capabilities.

The European Space Agency (ESA) and Avio signed a two-year contract worth 40 million euros (about $47 million U.S. at current exchange rates) on Monday (Sept. 29) at the International Astronautical Congress (IAC) here in Sydney, Australia, with the goal of preparing for in-flight demonstration of a reusable upper stage.