In this paper, data will be presented on the potential design and performance of a novel
water-fuelled Hall effect thruster (HET) named AQUAHET using high fidelity particle-in-cell
(PIC) simulations. Hall effect thrusters are one of the leading in-space propulsion technologies.
The potential for electric propulsion as a means for exploring deep-space is clear given the mass
limitations of chemical propulsion, and it is crucial to develop thrusters of a high power with the
thrust capability to accomplish this. Xenon as a propellant is currently the industry standard;
however, the rarity and volatile price of this element has led to research efforts aimed at finding
viable alternatives. One of the primary aims of the study are to evaluate how competitive water
vapour is as a propellant in comparison with oxygen, a novel propellant already explored in the
WET-HET. The plasma behaviour within HETs is highly complex, and while the most essential
behaviours are modeled, there are some phenomena that are still poorly understood. This work
will further focus on incorporating the electron-wall interactions in PlasmaSim, an in-house PIC
simulation, to investigate the impact of wall losses on the thruster performance when operating
with oxygen or water as propellant. Additionally, an optimization of the thruster geometric and
magnetic field parameters is performed to obtain the most efficient design.