Fusion startups around the world are racing to build the first fusion power plant. The German player Proxima Fusion could have come one step closer to this.
Fusion startups around the world are racing to build the first fusion power plant. The German player Proxima Fusion could have come one step closer to this: According to media reports, Bavaria is ready to support the startup with funding of up to 400 million euros for the construction of a fusion demonstrator called “Alpha”.
The fusion energy company has signed a declaration of intent (a so-called Memorandum of Understanding, MoU) together with the Free State of Bavaria, the Max Planck Institute for Plasma Physics (IPP) and RWE. In the MoU, the partners declare their intention to work together to create the first commercial magnetic fusion power plant, according to a statement from Proxima Fusion.
However, under one condition: the federal government must contribute 1.2 billion euros. In total, the construction should cost two billion euros. Proxima Fusion itself also wants to cover 400 million euros in costs. RWE has also agreed to participate financially in the project. The plant is scheduled to go into operation in the 2030s.
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The system for demonstration purposes is to be built in Garching near Munich.
The demonstrator is an important intermediate step towards the possible future commercial use of fusion energy. Nuclear fusion could provide us with virtually unlimited energy that produces no CO₂ emissions.
Key technologies are to be tested in the demonstration plant. The Max Planck Institute for Plasma Physics (IPP) will be responsible for the scientific management, while Proxima Fusion will be responsible for the engineering and construction of the demonstration facility.
This founder is behind it
Proxima Fusion was founded in 2023 as a spin-off from the Max Planck Institute for Plasma Physics (IPP) after scientists achieved a breakthrough in stellators in 2022 – a previously theoretical concept for systems that are intended to reliably generate fusion energy. One of them was the current Proxima Fusion founder Francesco Sciortino.
Last year, Proxima Fusion closed a financing round of 145 million euros. In an interview with Gründerszene in June 2025, founder Sciortino said that government support was “indispensable” for the construction of a fusion plant. You can find the entire interview here.
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