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Fusion Industry Association

FIA Outlines EU Financing Pathway for Fusion

From the FIA, Partnering with Governments

On 21 July, the Fusion Industry Association published a paper outlining a practical EU financing roadmap for commercial fusion energy. As fusion projects move from research to demonstration, first-of-a-kind plants and commercial deployment, they require different funding and financing tools at each stage of development. Europe’s financing framework must evolve from a collection of individual programmes into a coherent funding architecture that supports the entire fusion commercialisation journey.

Key recommendations include:

  • Rebalancing EU funding towards commercial deployment alongside research.
  • Adapting existing instruments such as the EU Innovation Fund, Horizon Europe, InvestEU and the future European Competitiveness Fund to better support fusion.
  • Mobilising private investment through guarantees, blended finance and capital market reforms.
  • Exploring a dedicated European Fusion Fund to finance pilot plants and first-of-a-kind projects.

With the upcoming EU Fusion Strategy and negotiations on the next EU budget, Europe has a unique opportunity to build a financing framework that allows fusion companies to scale in Europe.

Read the full paper and annex below:

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Tags: Post Tags: EU | Fusion | Fusion Energy |

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Common Fusion Approaches

Magnetic confinement: Plasma is heated to 100 million °C or more, then squeezed and held in place by strong magnetic fields, allowing many fusion reactions to occur. (Example: tokamaks, stellarators)

Inertial confinement: Tiny fuel pellets are struck by powerful lasers. The outer layer explodes outward, compressing the core to fusion conditions for a few nanoseconds, producing a brief but intense pulse of energy from each pellet. (Example: National Ignition Facility)

Hybrid systems: Combine compression (e.g., from lasers, plasma pistons, or mechanical impact) with moderate magnetic fields to reduce energy losses and improve confinement.

Electrostatic fusion: Uses high electric potentials to accelerate ions toward a central reaction zone, causing them to collide at high energies and fuse. The ions are guided and confined by electric fields rather than magnets, creating a compact environment for fusion reactions.

  • ABOUT
    • ABOUT THE FIA
    • STAFF
    • BOARD OF DIRECTORS
    • JOB OPPORTUNITIES
  • POLICY
    • PUBLIC PRIVATE PARTNERSHIPS
    • REGULATORY CERTAINTY
    • SCALING THE INDUSTRY
  • NEWS
    • FROM THE FIA
      • BLOG
      • INDUSTRY REPORTS
      • FUSION NEWS VIDEOS
    • FUSION IN THE NEWS
    • FOR THE MEDIA
  • MEMBERSHIP
    • FULL MEMBERS
    • AFFILIATE MEMBERS
    • EDUCATION & RESEARCH PARTNERS
  • EVENTS
    • EVENTS
    • UK FUSION FORUM 2026
  • LEARN
    • ABOUT FUSION ENERGY
    • FAQ
    • FUSION VS. FISSION
    • PATH TO COMMERCIAL FUSION
  • CONTACT