This paper presents the progress of the KvarkenSat project, which is supported by EU ERDF Interreg funds. The goal of this project is to present the KvarkenSat mission as an example of regional economic development and competence building. KvarkenSat will carry a multi-spectral camera to analyze the status of the forests and the marine waters as well as an Automatic Identification System (AIS) receiver for sea vessel monitoring. Additionally, a GNSS receiver will be included to retrieve raw data from the GPS and Galileo constellations for advanced precise point positioning (PPP) algorithm studies. The spacecraft will also perform an in-orbit demonstration of a small green water-based thruster system for deorbit and collision avoidance purposes.