New European Union Report Outlines New European Public-Private Partnerships for Fusion Energy

Report says “Promoting a faster and viable commercialisation of fusion energy will require both public and private investment”

The European Commission recently published a report analyzing a strategic public-private partnership (PPP) approach to foster innovation in fusion energy titled Analysis on a strategic public-private partnership approach to foster innovation in fusion energy.

There is an increasing recognition that public funding alone is not sufficient for developing viable commercial fusion energy. As other countries around the world initiate their own PPPs to accelerate fusion technology, an EU PPP for fusion could address the need for continued innovation, and retaining know-how, competitiveness and leadership in fusion.

The report confirms that existing funding instruments are sufficiently flexible and advises against creating completely new instruments which would require significant political, legal and other actions. Three separate and complementary funding opportunities are identified for industrial innovation in fusion and should be pursued in parallel:

• Create a Co-Programmed European Partnership (CPEP) for fusion innovation under the Horizon Europe program before its next budget in 2028. This would complement other innovation partnerships while reserving 25% of funds for additional EU fusion firms with high-risk/high-potential approaches to scale.
• Start an Innovation Partnership through Fusion for Energy (F4E) to evolve the focus towards industrial innovation. The program would support the development of key enabling technologies, reprioritizing available budgets to use towards mandated DEMO objectives.
• Ensure funding availability for fusion start-ups in the EU including SMEs in the supply chain. This can be achieved through Horizon Europe’s EIT-KIC InnoEnergy instrument. As key enabling technologies are developed, more tools such as the Innovation Fund, Breakthrough Energy Catalyst, European Investment Bank (EIB) and other funds will become more relevant.

Taking steps towards an EU fusion innovation strategy, the EU should propose a Strategic Research and Innovation Agenda (SRIA) which defines the main areas of focus and milestones to be achieved. The report also recommends communicating with industry to establish an EU representative organization. The FIA welcomes this suggestion and believes it would be the right candidate for this role.

The report is available below or on the European Commission’s website.