Germany Allocates Over NT$330 Billion to Fusion Energy, Launches Demonstration Plant Subsidy Competition in September

The German federal government will invest approximately €9 billion (NT$330 billion) to advance fusion energy commercialization, opening applications for demonstration plant subsidies in September. The initiative targets two technological pathways—magnetic confinement and laser-based fusion—aiming to outpace the U.S. and China in deploying the world’s first commercial fusion power plant.

Editorial Team8/4/2026Updated 8/4/2026

Government Launches 'Milestone Program' to Secure Leadership in Fusion Commercialization

The German federal government announced on July 30 that it will launch the 'Milestone Program' in September, offering competitive subsidies to support companies in constructing fusion demonstration power plants. The program plans to invest around €9 billion (approximately NT$330 billion), focusing on two technological pathways: magnetic confinement fusion and laser-based fusion. One company from each pathway will be selected for phased funding. Dorothee Bär, Germany’s Federal Minister for Research, Technology, and Aerospace, stated that the initiative aims to accelerate the commercialization of fusion technology and seize a leading position in the global energy transition.

The German federal government emphasized that fusion technology does not require burning fossil fuels and produces significantly less radioactive waste than conventional nuclear power, making it a key option for future clean energy. To achieve technological breakthroughs, the government will provide financial support through the Federal High-Tech Development Agenda (Hightech-Agenda), with plans to decide on a preferred development pathway by the mid-2030s based on technological progress.

Nationwide Deployment of Three Research Centers, Linking Over 30 Institutions

To accelerate the development of fusion technology, the German federal government simultaneously announced the establishment of three fusion research centers, connecting over 30 universities, research institutions, and enterprises across the country. The first research center, a collaboration between startup Proxima Fusion and the Max Planck Institute for Plasma Physics (IPP), will focus on magnetic confinement fusion technology. This approach uses magnetic fields to control plasma at temperatures exceeding 100 million degrees Celsius, maintaining stable fusion reactions.

The second research center, comprising Focused Energy, Marvel Fusion, and the European XFEL, will concentrate on laser-based fusion technology. Research will explore how high-energy lasers can compress fuel to trigger fusion reactions. The third research center, located at the Karlsruhe Institute of Technology (KIT), will address critical bottlenecks in fusion commercialization, including high-temperature-resistant reactor materials, fuel cycles, and nuclear waste management.

The German federal government stated that these research centers will receive stable funding through the Federal High-Tech Development Agenda to drive technological breakthroughs. Minister Bär noted that Germany possesses deep expertise in foundational science and industrial manufacturing, expressing hope that a comprehensive industrial chain layout will secure a leading position in the global fusion competition.

Technological Challenges Remain, Development Pathway to Be Decided by Mid-2030s

Despite being viewed as a future energy solution, fusion technology still faces significant challenges to commercialization. The German federal government acknowledged that sustainable power generation through fusion has not yet been achieved. Key obstacles include maintaining stable reactions at temperatures exceeding 100 million degrees Celsius and overcoming challenges in high-temperature-resistant reactor materials and fuel cycle technologies. Additionally, the high construction and operational costs of fusion power plants introduce uncertainties in the commercialization timeline.

According to the German federal government’s plan, the 'Milestone Program' will disburse funds in phases based on technological progress. Companies applying for subsidies must propose clear technical milestones to ensure the effective use of funds. The government expects to decide on a preferred development pathway—either magnetic confinement or laser-based fusion—by the mid-2030s, concentrating resources to advance commercialization.

The U.S. and China are currently the global leaders in fusion technology. Germany introduced its 'Fusion Action Plan' last October, aiming to leverage its strong scientific research and industrial foundation to build a complete fusion industry chain and secure a leading global position. Minister Bär stated that Germany will use competitive mechanisms to stimulate innovation and accelerate the commercial application of fusion technology, offering new solutions for the global energy transition.

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