Nano-satellite maker GOMspace has received nearly €1.5 million in the form of a ''development contract'' offered by the Luxembourg National Space Programme LuxImpulse.
The funds, allocated by the European Space Agency, will be used by the Denmark-headquartered company to develop a new product, dubbed the Mega-Constellations Operation Platform (MCOP).
The project to launch MCOP will become a ''key part'' of the GOMspace Luxembourg office's role, which is to offer constellation services for small satellites.
It is set to be completed in the first quarter of 2020.
GOMspace previously said it was planning to hire up to 50 people in Luxembourg by 2021.
Last September, GOMSpace and the Luxembourg government signed a memorandum of understanding (MoU) to develop new space activities in the Grand Duchy.
At the time, the Economy Ministry committed to providing the local subsidiary of GOMSpace funding through LuxImpulse and other types of research and development grants.
LuxImpulse, a government initiative carried out as part of Luxembourg's membership in the European Space Agency, provides funding to help companies active in space resources and space exploration to bring their ideas to market.
GOMSpace, established in 2007, is listed in Stockholm, headquartered in Denmark and has offices in Sweden, Luxembourg, the US, and Singapore.
Globally, it employs nearly 200 people and serves international customers in more than 50 countries.