Calgary Startup Secures $4.2M to Advance Hypersonic Propulsion

A Calgary aerospace startup has secured a $4.2-million federal contract to advance hypersonic propulsion systems, a move that underscores Canada’s urgent need to catch up in a rapidly evolving area of defence technology. North Vector Dynamics, co-founded by aerospace engineers and academics with ties to the University of Calgary, will partner with Defence Research and Development Canada (DRDC) to design and test propulsion concepts for vehicles capable of travelling at speeds greater than Mach 5.

“For a startup, this is huge,” said Paul Ziadé, co-founder and chief executive officer of North Vector Dynamics. “It gives us clarity on the next few years, means job creation, and allows us to create intellectual property here in Canada rather than relying on technology from the United States or Europe.”

Ziadé said the contract provides the runway to hire recent science and engineering graduates in Calgary and sponsor related research projects at local universities. “Being able to offer exciting opportunities to young graduates is huge here in Calgary,” he said. “Traditionally, Canada has procured defence equipment from abroad. Owning our own IP means we can defend ourselves on our own terms.”

The project will focus on hypersonic aeropropulsion, including scramjet engines—a type of air-breathing system that can propel vehicles at more than five times the speed of sound. Ziadé said the company’s work aims to bolster Canada’s ability both to understand and to counter threats from emerging technologies. “Air-breathing hypersonic vehicles are very difficult to detect early,” he said. “Radar systems can’t always see over the horizon, and these vehicles can be highly maneuverable and unpredictable. Our countermeasures must be updated to address this new threat.”

Alongside its hypersonics research, North Vector Dynamics is also building drone interceptors in Calgary to counter the growing threat of small unmanned aerial systems. The startup is positioning itself as what Ziadé calls a “full-spectrum air defence company,” with offerings “from small DJI-type drones all the way to Mach-7 hypersonic systems.”

Dr. Robert Huebert, a political science professor and director of the Centre for Military, Security and Strategic Studies at the University of Calgary, said the contract signals how quickly Canada must adapt to new realities in international security. “When you have an enemy that has hypersonics, you need to understand it,” Huebert said. “You need to be able to defend against it, detect it and show that you have the capability yourself, so that these weapons never get used in the first place.”

Huebert noted that Russian and Chinese advances in hypersonics have raised alarms within NATO, including at NORAD, where senior commanders have publicly questioned North America’s ability to detect or intercept such weapons. “If someone at that level is saying he does not have confidence in his ability to respond, you can understand how far behind we are,” Huebert said.

Both Ziadé and Huebert highlighted Calgary’s growing role in defence innovation, despite the city’s traditional identity as an energy hub. Alberta’s aerospace industry, access to testing ranges such as CFB Suffield, and a young, skilled workforce provide what Ziadé described as “the makings of an absolute monster industry.”

Huebert agreed. “There is a very strong sense of entrepreneur here in Calgary, and a growing awareness that this is something that can succeed,” he said. “The ability within Calgary to pivot and develop this expertise is critical as we go into a much more dangerous international environment.”

The contract is part of Ottawa’s effort to modernize continental defence, including nearly $40 billion for NORAD renewal, which will fund over-the-horizon radar and other systems designed to spot incoming threats earlier. It also comes as Canada seeks to boost defence spending by nine billion dollars this year to meet NATO obligations.

Ziadé said the company’s next steps include raising private capital, expanding into U.S. and European markets, and positioning Calgary as a centre for advanced security innovation. “We’re designing and building for Canada, but also with our allies in mind,” he said.

For Huebert, the presence of a local defence startup offers opportunities for his students to connect with real-world projects. “Centres like ours have to be able to train graduate students to critically think about what all of this means in the greater Canadian security realm,” he said. “Having a company like this here allows for those necessary conversations—and the chance for Canada to finally start doing more by ourselves.”

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