1 | Introduction and Overview

The Aqualunar Challenge, a collaborative initiative between the UK Space Agency and the Canadian Space Agency, aims to develop innovative technologies for extracting and purifying water from the Moon's surface. It comprises two tracks, the UK track with a total of £1.2 million prize and the Canadian track with a total of $1M CAD that will be awarded in grant funding to UK and Canadian space tech companies respectively.

The joint initiative aims to find solutions to extract and purify water from ice on the lunar surface. This challenge is crucial for future lunar missions, including Artemis, as water is essential for sustaining human life, producing oxygen, and generating rocket fuel. The competition has attracted numerous innovative solutions from both countries, highlighting the importance of international collaboration in space exploration.

2 | Technical Challenges

A sustained human presence on the Moon will require frequent launches from the lunar surface, and each launch will, according to NASA, require tons of propellant. In 2023, NASA published a Technology Assessment for Producing Propellant from Lunar Water which shows different technologies to produce propellant from lunar water. However, many other volatiles are likely to be present in the areas where lunar water is stable. 

Extracting water from the Moon presents several technical challenges. The lunar soil known as regolith, which contains ice, is found in permanently shadowed regions with extreme cold temperatures. Traditional excavation methods are not feasible due to the harsh environment (approx. -200°C, low gravity., and a vacuum) and limited electric power. Innovative techniques such as microwave heating, solar concentrators, and cold trap methods are being explored to effectively extract and purify water from the lunar soil.

NASA outlines the importance of separating and purifying water before it can be used for electrolysis to produce oxygen and hydrogen gas. In addition, water for human consumption on the Moon must be 100% clean to sustain the life of astronauts and space travelers.

3 | UK Competition

The UK Space Agency's Aqualunar Challenge UK has seen remarkable innovations. The notable winner is the SonoChem System by Naicker Scientific, which uses microwaves to defrost lunar ice and ultrasound to break down contaminants, providing clean water for astronauts. The UK Space Agency has awarded ten technologies, each with unique approaches to purifying lunar water, showcasing the country's commitment to advancing space exploration. The finalists received seed funding and non-financial support to develop their ideas further. The winner, Naicker Scientific, was awarded the £150,000 first prize, with two runners up winning £100,000 (FRANK, the Filtered Regolith Aqua Neutralisation Kit developed by father and sons team RedSpace Ltd.) and £50,000 (AquaLunarPure, developed by Queen Mary University of London) respectively.

4 | Canada Competition

The Aqualunar Challenge Canada is managed by the Canadian Space Agency in partnership with Impact Canada. The competition called on Canadian innovators to develop solutions for purifying lunar water. Unlike the recently finished Acqualunar Challenge in the UK, the Canadian track is still ongoing, with the Canadian prize winner to be selected in spring 2026. The finalists include the Canadian Space Mining Corporation, Sixpenny Architectural Fabrication, 778 Labs, and Lotic Technologies Inc., each with very different technologies and approaches to purify water. The four finalists each received $105,000 CAD. The first prize winner will receive an additional $400,000 CAD. 

5 | Benefits on Earth

The technologies developed for the Aqualunar Challenge have significant potential benefits on Earth. Innovations in water purification can be applied to improve water treatment processes in remote and resource-limited areas, including in Africa, in remote areas on other continents, or in areas with fresh water sources. These advancements can help address global water scarcity and provide clean drinking water to communities in need. The challenge also drives innovation that can lead to new products and services benefiting humans on Earth.

The extraction and utilization of lunar resources raise several legal issues. While existing international agreements provide a foundational framework, the specifics regarding resource ownership and commercial exploitation remain contentious.

The Outer Space Treaty of 1967 and the Moon Agreement of 1984 provide the fundamental legal framework for space exploration, emphasizing that the Moon and its resources are the common heritage of humankind. However, the lack of widespread ratification of the Moon Agreement and the emergence of private sector involvement complicate the legal landscape. National laws further add to the complexity by allowing private entities to extract and own space resources.

The emergence of private companies in space exploration and resource extraction adds another layer of complexity. While private sector innovation can accelerate technological advancements, it also raises questions about regulation, oversight, and equitable access to resources.

6.1 The Outer Space Treaty (1967)

The Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies known as the Outer Space Treaty (OST) forms the basis of international space law. It prohibits national appropriation of celestial bodies and emphasizes that space exploration should benefit all humankind. Article 2 OST reads as follows: “Outer space, including the moon and other celestial bodies, is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means.” However, the OST does not explicitly address the extraction and commercial use of space resources.

6.2 The Moon Agreement (1984)

The Agreement Governing the Activities of States on the Moon and Other Celestial Bodies known as the Moon Agreement aims at establishing a regime for the exploitation of lunar resources, declaring them the “common heritage of mankind” (Article 11(1) of the Moon Agreement). The Moon Agreement calls for an international regime to govern resource activities and ensure equitable sharing of benefits. Article 6(2) of the Moon Agreement gives the parties to the Moon Agreement the limited right to collect on and remove from the moon samples of its mineral and other substances for carrying out scientific investigations and states: “Such samples shall remain at the disposal of those States Parties which caused them to be collected and may be used by them for scientific purposes. States Parties shall have regard to the desirability of making a portion of such samples available to other interested States Parties and the international scientific community for scientific investigation. States Parties may in the course of scientific investigations also use mineral and other substances of the moon in quantities appropriate for the support of their missions.” Similar to the OST, Article 11(2) of the Moon Agreement states that “The moon is not subject to national appropriation by any claim of sovereignty, by means of use or occupation, or by any other means.” Article 11(3) of the Moon Agreement further specifies the obligations of the parties to the Moon Agreement: “Neither the surface nor the subsurface of the moon, nor any part thereof or natural resources in place, shall become property of any State, international intergovernmental or non-governmental organization, national organization or non-governmental entity or of any natural person.” The legal exploitation of lunar resources, including ice / water, seems to require a regime to be implemented first. Article 11(5) obliges the parties to the Moon Agreement to establish an international regime, including appropriate procedures, to govern the exploitation of the natural resources of the moon as such exploitation is about to become feasible. Article 11(7) of the Moon Agreement states that the main purposes of such international regime to be established shall include: “(a) The orderly and safe development of the natural resources of the moon; (b) The rational management of those resources; (c) The expansion of opportunities in the use of those resources; (d) An equitable sharing by all States Parties in the benefits derived from those resources, whereby the interests and needs of the developing countries, as well as the efforts of those countries which have contributed either directly or indirectly to the exploration of the moon, shall be given special consideration.” The regime that Article 11 of the Moon Agreement envisions is yet to be established. The Principles for Space Resource Activities currently available as initial draft only (see below), can be seen as a start to establish an international regime for the exploration and development of the resources on the Moon. To achieve a high acceptance rate, the international community must find a practical compromise that includes as many countries as possible, else its future will share the same destiny as the Moon Agreement.

The Moon Agreement has not been widely ratified by major spacefaring nations, limiting its practical impact. For example, China, Canada, Germany, Japan, the UAE, the UK, and the USA have not even signed the Moon Agreement, and India has signed, but not ratified the Moon Agreement. Since these nations are not party to the Moon Agreement, the regime for the lawful exploitation of the natural resources of the Moon does not seem to be on the agenda in the near future. Rather, it seems that there will be another space race, this time for the resources of the Moon.

6.3 National Laws

In the absence of a clear international consensus, some countries have enacted national laws to address the commercial exploitation of space resources. The U.S. Commercial Space Launch Competitiveness Act, for example, grants private entities the right to extract and own space resources. This has raised concerns about potential conflicts with international agreements and the possibility of a “space resource grab.”

As lunar resource activities become more feasible, the development of clear and comprehensive legal frameworks will be crucial. These frameworks must balance the interests of various stakeholders, ensure compliance with international law, and promote sustainable and responsible resource utilization.

The Legal Subcommittee of the U.N. Committee on the Peaceful Uses of Outer Space (COPUOS) recently published their Initial Draft Set of Recommended Principles for Space Resource Activities (March 2025). This set of draft principles emphasizes compliance with international law and ensures freedom of access (Principle 2 A-B) and non-appropriation (Principle 2 C-D). It promotes the use of space resources, including water on the Moon, for peaceful purposes (Principle 3) and highlights the importance of safety (Principle 4), sustainability and environmental protection (Principle 5), prioritizing scientific research (Principle 6), and includes principles for the sharing of information and data (Principle 7), coordination and cooperation (Principle 8), and the international responsibility for non-governmental entities (Principle 9). While these Principles seem to be a good starting point, they do not conclusively address the more practical questions of how to access, secure, and use resources such as ice/water, and to develop and protect technologies when resourcing water from ice on the Moon.

The legal aspects of lunar resource extraction are likely to remain a subject of ongoing debate and negotiation. Addressing these legal challenges will require international cooperation, innovative legal solutions, and a commitment to the peaceful and equitable exploration and use of space resources.

7 | Conclusions

The Aqualunar Challenge represents a significant step forward in the quest to utilize lunar resources for sustainable space exploration. The innovative technologies developed through this competition not only pave the way for future lunar missions but also offer valuable solutions for water purification on Earth. As we continue to explore the Moon, addressing the technical and legal, but also ethical challenges will be crucial for ensuring the responsible and equitable use of lunar resources. The cross-border Acqualuna Challenge emphasizes the importance of international collaboration and the potential for these technologies to benefit water purification efforts on Earth.

Credits: Moon photo taken by SpaceTech.Lawyer. All rights reserved.