NASA has promised to award $250,000 to the first team that proves it can extract breathable oxygen from lunar surface material , the latest award in the space agencyโ€™s Centennial Challenges program.

The cash prize is the reward for winners of the agencyโ€™s Moon Regolith Oxygen (MoonROx) challenge, the third contest set by NASA to encourage development of a commercial space industry.

In the MoonROx contest, NASA and the Florida Space Research Institute (FSRI) challenge inventors to pull at least 5 kilograms (11 pounds) of breathable oxygen from a volcanic ash-derived substance called JSC-1, which will serve as a substitute for lunar surface material.

But it doesnโ€™t end there. Participants not only have to extract the oxygen but also must do it within eight hours. The competition ends June 1, 2008.

โ€œOxygen-extraction technologies will be critical for both robotic and human missions to the moon,โ€ said Sam Durrance, executive director for FSRI. โ€œLike other space-focused prize competitions, the MoonROx challenge will encourage a broad community of innovators to develop technologies that expand our capabilities.โ€

Earlier this year, NASA detailed two other centennial challenges.

The 2005 Beam Power Challenge will award $50,000 to the first team that uses wireless technology to lift a weight off the ground. Such technology eventually could be employed to beam payloads off Earth.

Meanwhile, the 2005 Tether Challenge calls for teams to build the strongest tether of a specific diameter. The tethers will be stretched to the breaking point, with winners advancing through the ranks toward a final showdown with NASAโ€™s โ€œhouse tether,โ€ made of existing material. Beat the house tether and you snag $50,000.

NASA plans to set aside about $80 million toward Centennial Challenge prizes over the next five years. Partly spurred by the $10 million Ansari X Prize for a private, manned suborbital spaceflight โ€” which was snared last year by Scaled Compositesโ€™ SpaceShipOne โ€” the cash prizes also are geared to help support NASAโ€™s space exploration vision.

That vision, announced by U.S. President George W. Bush on Jan. 14, 2004, calls for a resumption of human missions to the moon by 2020, with a subsequent push to Mars and beyond.

โ€œThe use of resources on other worlds is a key element of the vision for space exploration,โ€ said Craig Steidle, NASAโ€™s associate administrator for the Exploration Systems mission directorate, in a statement. โ€œThis challenge will reach out to inventors who can help us achieve the vision sooner.โ€