The European Space Agency (ESA) has awarded Avio a contract to develop a new version of the Vega launch vehicle, Vega-E. The contract, announced July 23, is worth 118.8 million euros ($140 million). ESA did not announce when the rocket variation would be ready for flight. Vega is Europe’s light launcher that operates from Europe’s Spaceport in French Guiana. Vega-E will use building blocks from the Vega-C launcher, which is slated for first flights in 2022. Vega-E will feature a completely new upper stage, featuring a new low-cost liquid-fuelled engine. It will also have three stages, while Vega-C which has four. Two stages will be derived from Vega-C: the first stage P120C solid rocket motor which provides the thrust at liftoff and the second stage solid rocket Zefiro-40 motor. The new third stage is the liquid oxygen–methane cryogenic upper stage which is the core of Vega-E preparation.