Energy / Europe · Public record
Proxima Fusion signs Japan deals to build fusion power plant supply chain in Germany
Proxima Fusion, valued at $2.7 billion, is working with Japanese industrial partners to establish manufacturing capacity in Germany for components needed in its planned fusion power stations. The agreements signal Europe's attempt to convert scientific leadership in fusion research into industrial capability and supply chains.
What was announced
Munich-based Proxima Fusion signed memoranda of understanding with Fujikura and Kyoto Fusioneering in Tokyo on Oct. 28. Japanese Prime Minister Sanae Takaichi and German Chancellor Friedrich Merz attended the signing.
The agreement with Kyoto Fusioneering will expand existing work on next-generation gyrotrons, devices that generate high-power microwaves used to heat plasma. The agreement with Fujikura will explore plans for industrial-scale manufacturing in Germany of high-temperature superconducting tape, a specialized metallic tape that can carry electrical current with virtually no resistive losses.
Proxima is studying plans to build a manufacturing facility in Lower Saxony. CEO and co-founder Francesco Sciortino told CNBC the company hoped to make around 5,000 kilometers of tape annually by 2030. The 140 million euro facility would be financed partly by proceeds of a $468 million funding round in July, which valued Proxima at $2.7 billion.
Why fusion and why now
Fusion energy seeks to replicate the way the sun produces power, using super-heated plasma to fuse two light atomic nuclei into one heavier one, releasing vast amounts of energy in the process. There are two main approaches: one uses high-powered lasers, while the other uses powerful magnets to confine the plasma.
Proxima is developing a type of magnetic device called a stellarator, which is designed to hold the plasma in place for long periods. The superconducting tape is wound into coils to form powerful magnets that confine and control the heated plasma inside the stellarator.
Ann Mettler, president of Brussels-based clean-energy think tank Catalyse Europe and a former vice president of Breakthrough Energy, told CNBC that developing the technology should be a strategic imperative for Europe. She said Europe is a resource-poor geography and very dependent on China, calling fusion a silver bullet because the promise is abundant, clean, limitless energy.
Who is involved and what they need
Fujikura, a 141-year-old company that employs over 50,000 people worldwide, is a leader in manufacturing high-temperature superconductors, having built its reputation in optical fibers. Sciortino said Fujikura thinks the tape has the potential to be the next optical fiber.
Proxima expects to need around 20,000 kilometers of the tape for its Alpha fusion demonstrator and a further 40,000 kilometers for its planned Stellaris fusion power station. Proxima's backers include Alphabet-owned Google.
Proxima has competitors including U.S.-based Commonwealth Fusion Systems, which is also backed by Google, and Helion Energy, as well as Canada's General Fusion. China has state-backed players, most notably China Fusion Energy Co., while Tokyo-based Helical Fusion leads Japan's push. Sciortino said he remains confident Proxima will be the first company to turn on a pilot plant and is aiming for net energy gain during the early 2030s.
The industrial challenge
Sciortino told CNBC that establishing production of the tape in Germany was crucial as it would help Europe create the expertise and supply chains needed to turn its fusion research leadership into industrial capability. Mettler said every geography wants to turn leadership in science into industrial leadership and this is where Europe has traditionally been not so good.
According to Mettler, while Europe had industrial giants to be proud of, disruptors tended to be more successful in frontier technologies. She said if Europe is first to develop this technology, it will give Europe a huge advantage, but key to that will be building the supply chain.
Sciortino said the key to profitability would be making the plant as simple as possible to operate. He said Proxima can take care of complexity in the design and manufacturing, but there needs to be simplicity in the operation. Mettler said the supply chain in fusion energy needs to be built years before, noting that people often think of frontier technologies as a switch that can be thrown.
What to watch
- Whether Proxima begins construction of the Lower Saxony manufacturing facility and reaches the 5,000 kilometers annual production target by 2030
- Whether Proxima achieves net energy gain during the early 2030s, as Sciortino stated the company is aiming for
- Which company turns on a pilot fusion plant first among Proxima, Commonwealth Fusion Systems, Helion Energy, General Fusion, China Fusion Energy Co., and Helical Fusion
- Whether the memoranda of understanding with Fujikura and Kyoto Fusioneering convert into binding manufacturing agreements
What we don't know yet
- The specific technical specifications or performance targets for the gyrotrons being developed with Kyoto Fusioneering
- The timeline for construction and operation of the Alpha fusion demonstrator and Stellaris fusion power station
- How much of the $468 million funding round will be allocated to the tape manufacturing facility versus other Proxima projects