Avio is moving ahead with efforts to develop a larger methane-fueled rocket engine and a prototype small launch vehicle with more than $300 million in funding from the Italian government.

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Jeff Foust has more than a decade of experience writing about space policy, entrepreneurial ventures and regulatory affairs. In 2001, he established spacetoday.net to aggregate and summarize the day's space-related news stories. In 2003, he started The...