German nuclear fusion startup plans to build a new experimental plant: the state government has already spent 400 million and is waiting for Berlin's approval

German startup Proxima Fusion has received €400 million in support from Bavaria to build a €2 billion nuclear fusion testing facility.

On Thursday, February 26, local time, Proxima announced on its official website that the company had signed a memorandum of understanding with Bavaria, Rhein Group, and the Max Planck Institute for Plasma Physics (IPP) to develop the Alpha demonstration stellarator.

Source: Proxima official website

The planned Alpha demonstration stellarator is a testing facility with the key goal of achieving “net energy gain”—meaning the output energy exceeds the input energy in fusion experiments. If successful, it will pave the way for the future construction of Europe’s first commercial fusion power plant.

Proxima and Bavaria have agreed to each cover 20% of the construction costs (about €400 million), contingent on the German federal government providing the remaining €1.2 billion. The press release stated that the four partners are working together to increase the chances of securing federal funding.

Proxima CEO Francesco Sciortino told the media that the company’s goal is to complete the construction of a commercial power plant “by the 2030s.”

Sciortino also stated in the press release, “We are committed to integrating Germany’s first commercial fusion power plant into the grid, which is a strong, internationally recognized signal that Europe is actively shaping its energy future.”

It should be noted that the U.S. Lawrence Livermore National Laboratory (LLNL) achieved “net energy gain” as early as 2022 and attracted $1.6 billion in corporate investment into fusion last year.

In contrast, Europe has been gradually falling behind in the fusion race. Part of Europe’s difficulties stem from France’s International Thermonuclear Experimental Reactor (ITER) project, which has faced recent engineering delays and has consumed a significant portion of the EU’s fusion budget.

Germany is trying to play a more active role in this context. Last year, the German government approved an action plan called “Germany’s Path to a Fusion Power Plant” at the federal cabinet meeting in Berlin, aiming to build the world’s first fusion power plant.

According to this plan, by 2029, Germany will have invested over €2 billion in the field to fund related research, support research infrastructure, and develop demonstration devices.

However, an insider from one of Proxima’s competitors said that obtaining €1.2 billion in federal funding from Germany is “almost a fantasy,” and added, “Bavaria’s €400 million is certainly impressive, but without federal funds, it’s meaningless.”

Most current fusion companies use “tokamak” devices to confine plasma, while Proxima employs a design called “stellarator.” Due to the construction challenges of stellarator configurations, most nuclear fusion experiments today are tokamaks.

[Image: Spiral magnetic field without transformers, forming a helical shape, called stellarator. Source: IAEA official website]

According to the International Atomic Energy Agency (IAEA), both types of reactors have their advantages. Tokamaks excel at maintaining plasma temperature, while stellarators are better at maintaining plasma stability.

The IAEA article mentioned that although tokamaks are currently more popular, stellarators could someday become the preferred choice for future fusion power plants.

Proxima CEO Sciortino said that if funding falls through, the company might abandon the plan, but he is “not too worried” because the current environment is relatively supportive. He expects the German government to complete the investment screening process by the end of this year.

(Source: Caixin)