A US Department of Defence agency and Nasa selected Lockheed Martin Corp to design and develop the first nuclear thermal rocket engine to be tested in space, part of a programme called DRACO.

Through a contract announced on Wednesday with the federal research and development organisation known as DARPA, Lockheed Martin will design and build the nuclear-propelled engine along with an experimental spacecraft, called X-NTRV. The goal will be to launch the spacecraft with the nuclear engine in 2027.

The overall value of the contract is roughly US$500 million, with Nasa committing about US$250 million and DARPA contributing the rest...