German government pledges more than €2 bln for nuclear fusion

(UPDATE with reactions from startup Proxima Fusion and technical certifier TÜV Nord.)

The German government will invest more than 2 billion euros by 2029 to support its ambition to build the first nuclear fusion reactor in the country. In its fusion energy action plan, the government said the funds will flow into research and developing pilot projects.

Fusion energy “promises the possibility of supplying electricity that is base-load capable, clean, safe and resource-efficient” and could become “a crucial pillar for our society and our economy,” the action plan says, adding that energy-intensive processes such as hydrogen production could also benefit from fusion power plants.

Fusion technology is still in the experimental stage, and even many proponents say that commercial use is at least decades away, meaning that neither Germany nor Europe can count on the technology in their efforts to become climate neutral by 2045 and 2050 respectively.

However, researchers and investors have become increasingly confident it could one day provide a safe, climate-friendly, and practically inexhaustible energy source. The US, China, Japan, and the UK, as well as the European Union, have already invested billions of euros in developing it. Dozens of startups backed by private capital have entered the field, injecting new momentum.

The government said it wants to create explicit regulations for fusion to provide planning security for start-ups and industry. It also plans to establish a fusion ecosystem comprising science and industry, improve training, and increase international cooperation, among other steps.

"Our energy for tomorrow should be secure, environmentally friendly, climate-friendly and affordable for everyone," said research and technology minister Dorothee Bär. Nuclear fusion could be a key technology in helping to meet demand in the future, she said.

Germany’s fusion industry has criticised a lack of support mechanisms, regulations and fundamental decisions. Leading startups last week urged Germany to seize a “unique historical opportunity” to lead in the technology, by committing three billion euros for the construction of three demonstration plants. It was unclear whether the government’s two-billion-euro pledge would cover three pilot plants.

Proxima Fusion, Marvel Fusion and Focused Energy said Germany risked falling behind the US and China if support does not move beyond basic research. They said industrial pilot projects should become reality by 2030, and a first commercial plant later in the same decade.

Proxima Fusion said the government's action plan sends an important signal that Germany is committed to fusion and is positioning itself as a European leader. "It is crucial that the funds are invested in technology transfer, particularly in building a fusion demonstrator," CEO Francesco Sciortino said.

Technical certifier TÜV Nord, which is involved in fusion projects such as Germany's Wendelstein 7-X and France's ITER,  warned that the timelines for developing nuclear fusion power are "very ambitious", given the number of challenges that must be overcome. "All concepts still need to prove in practice that net energy can be generated and used continuously," the organisation said. It added that the fuel cycle remained unresolved and that more material research is required.

"Plant safety and radiation protection are not yet a focus, although they will be important during operation,"  TÜV said, adding that approval procedures also remain unclear.