The Ad Astra Rocket company from Webster will develop the Vasimr engine which uses plasma, an electrically charged gas, as a propellant.
"This is like no other rocket that you may have seen in the past. It is a plasma rocket. The Vasimr rocket is not used for launching things. It is used for things already there, which we call 'in space propulsion,'" said the company's CEO, Franklin Chang-Diaz, who is a former astronaut and flew on seven space shuttle missions.
This in turn creates thrust, helping to propel the engine at extreme speeds.
Over a three-year period, NASA will give the company in the region of USD 10 million to enable the engine to fly in space, 'rt.Com' reported.
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This will be achieved with a demonstration of their new prototype, the VX-200-SS, which will be able to fire continuously for more than 100 hours.
NASA will then consider employing the propulsion system on future excursions to Mars.