The global energy crisis triggered by the ongoing conflict involving Iran has pushed alternative energy sources back into focus, with fusion technology emerging as a potential long-term solution for Europe’s energy needs.
Disruptions to shipments through the Strait of Hormuz, a critical route for global oil supplies, have led to what the International Energy Agency describes as one of the most significant supply shocks in history. The situation has prompted European policymakers to reassess reliance on imported fossil fuels and accelerate the search for domestic energy options.
While renewable sources and conventional nuclear power remain central to this effort, attention is increasingly turning to nuclear fusion, a technology that promises large-scale energy production without carbon emissions or long-lived radioactive waste.
Fusion energy works by combining light atomic nuclei to release energy, in contrast to nuclear fission, which splits heavy atoms. According to the International Atomic Energy Agency, fusion has the potential to produce significantly more energy per unit of fuel than both fossil fuels and traditional nuclear methods. Despite its promise, the technology is still in the experimental stage, with researchers working to achieve sustained and economically viable reactions.
One company at the forefront of this effort is Proxima Fusion, a Munich-based startup founded in 2023 as a spin-off from the Max Planck Institute for Plasma Physics. The company is focusing on stellarators, a less widely used type of fusion reactor.
Unlike the more common tokamak design, stellarators use complex magnetic fields to stabilise plasma, the high-energy state of matter required for fusion. While more challenging to design and build, stellarators are considered easier to operate over long periods and may offer greater stability.
Proxima Fusion is currently developing a demonstration device known as Alpha, which aims to test whether a stellarator can produce as much energy as it consumes. The project is in its manufacturing phase, with operations expected to begin in the early 2030s. The company is also planning a commercial-scale power plant, Stellaris, which could become one of the first fusion facilities designed for continuous energy production.
Germany has positioned itself as a key player in this field, committing significant investment to fusion research following its exit from nuclear fission in 2023. The government has outlined plans to support the development of fusion technology, including funding aimed at accelerating progress toward a functioning power plant.
However, not all experts are convinced that fusion will become commercially viable in the near future. Some researchers argue that the costs remain uncertain and may not fall as quickly as anticipated. Studies suggest that expectations around cost reductions could be overly optimistic, particularly given the complexity of the technology.
Even so, interest in fusion continues to grow as Europe seeks ways to strengthen energy security and reduce exposure to global supply disruptions.
