The ESA (European Space Agency) is currently pursuing the development of the e.Deorbit mission that will remove a large defunct satellite from Earth orbit: ENVISAT. To fulfil the mission autonomy requirements, ESA has decided to embed in the GNC (Guidance, Navigation, Control) software, fault tolerance capacities against actuator faults. The aim of this paper is to present the development and validation of a model-based fault diagnosis and tolerant control solution for such faults. The proposed solution is based on a new class of nonlinear unknown input observers, optimal in the L2-gain sense, and a modified version of the nonlinear inverse pseudo control allocation technique. An intensive simulation campaign conducted within a high-fidelity nonlinear industrial simulator, demonstrates the efficiency of the approach.