Proxima Fusion, a Munich-based startup, has signed a Memorandum of Understanding with the Free State of Bavaria, energy company RWE, and the Max Planck Institute for Plasma Physics (IPP) to construct the world's first commercial stellarator fusion power plant in Europe. This ambitious project, named Stellaris, is planned for the site of a former nuclear power plant in Gundremmingen, currently being decommissioned by RWE. The agreement, signed on February 26, 2026, jumpstarts Europe's industrial deployment of fusion power.
The project's roadmap begins with building a demonstration stellarator called Alpha near the IPP in Garching. Alpha, slated to be operational in the 2030s, aims to be the first stellarator to achieve net energy gain, meaning its plasma will produce more energy than it consumes. This demonstration reactor is crucial for testing and validating key fusion technologies, accelerating the development of the commercial Stellaris plant. Proxima Fusion will lead the engineering, public procurement, and construction of the Alpha and Stellaris projects, while IPP will provide scientific leadership and plasma physics expertise.
Financing for the €2 billion (approximately $2.1 billion) Alpha project is structured with shared contributions. Proxima Fusion intends to finance about 20% of the total costs through private international investors, which amounts to approximately €400 million ($420 million). The Free State of Bavaria has indicated it will co-finance another 20%, also around €400 million ($420 million), subject to federal funding. RWE has also expressed willingness to participate financially and will contribute its expertise in power plant construction and operation. The remaining funding, an estimated €1.2 billion ($1.26 billion), is anticipated from the German federal government through its Fusion Action Plan, which earmarks over €2 billion ($2.1 billion) for fusion research and pilot projects by 2029.
The German government has significantly increased its investment in fusion research, with more than €1 billion ($1.05 billion) allocated by 2028, and a further €755 million ($793 million) from a federal infrastructure fund specifically for pilot projects. This push aligns with the High-Tech Agenda Germany, an €18 billion ($18.9 billion) strategic plan aimed at establishing Germany as a global innovation leader by 2029, with fusion identified as a critical future technology. The overall goal is to have the first fusion power plant constructed in Germany by 2040, a target that the Stellaris project, along with the Alpha demonstration, is directly addressing.
