Proxima Fusion recently announced that it has signed a Memorandum of Understanding (MoU) with the Free State of Bavaria, RWE, and the Max Planck Institute for Plasma Physics (IPP) to build the world’s first commercial stellarator fusion power plant in Europe.
The MoU covers two projects. The first is Alpha, a demonstration stellarator to be built near the IPP in Garching. When operational in the 2030s, Alpha is intended to become the first stellarator to demonstrate net energy gain.
The second is Stellaris, a commercial fusion power plant planned for the site of a former nuclear fission plant in Gundremmingen, currently being decommissioned by RWE.
Under the MoU, the Free State of Bavaria has indicated a potential state contribution of 20 percent of total project costs, subject to federal funding. Proxima plans to finance approximately 20 percent through private international investors, and RWE has signaled its willingness to participate financially as well.
The Alpha demonstration stellarator alone is estimated to require approximately 2 billion euros. Bavaria is supporting magnetic fusion research through its High-Tech Agenda with up to 400 million euros, and federal contributions are also expected through the German High-Tech Agenda.
The four partners will work together on site selection, permitting, regulatory processes, project structure, and financing. IPP will lead on plasma physics and scientific oversight of Alpha. Proxima Fusion will lead on engineering and construction. RWE will contribute operational expertise from its experience building and running complex power plant facilities.
Proxima also plans to establish a magnet factory and expects the two projects to create up to 1,000 jobs and thousands of supplier contracts for European manufacturers.
This agreement is one of the most significant fusion industry announcements in Europe to date and follows a period of increasing private investment across the global commercial fusion sector.