Nuclear fusion research, which could be a game-changer in the fight against climate change, is heating up globally. Europe has an early lead, but there are concerns over future competitiveness.
In September, the long-awaited report on the EU’s competitiveness from former European Central Bank chief Mario Draghi was delivered to the European Commission. The 400-page report touches on many topics, but the security and competitiveness of Europe’s energy system are among the main priorities.
The report endorses a vital role for nuclear power in Europe’s energy future. Nuclear fusion, the process that powers the sun, is singled out as a particularly important evolving technology.
“Nuclear fusion is a disruptive technology that holds the potential to revolutionise the energy landscape in the second half of this century,” Draghi wrote. “It could play a pivotal role as a low-carbon, climate-friendly, affordable and safe energy solution based on an abundant and accessible supply of fuel material.”
He notes that the ITER project in France, initiated by the EU in 2006, has “propelled the EU to the forefront of global fusion research, investing billions of Euros in the industry’s supply chain and research.” But he adds that despite this, “its practical deployment remains several decades away, necessitating further concerted effort and investment to bring this revolutionary energy source to market.”
There are ways to change this timeline, however, if some of the key demonstration and commercialisation roadblocks are addressed.
Drahi calls for the EU to “develop an overarching EU innovation strategy for nuclear fusion energy and support the creation of a public-private partnership to promote its rapid, economically viable commercialisation.” That partnership should contain “a clear technology development roadmap,” with public and private investment acting in synergy.
One of the key roadblocks in Europe is the competitiveness of fusion efforts compared to other parts of the world. In the global race for fusion energy, Europe has been a major player. However, Europe faces fierce competition from countries like the United States, China, and South Korea, which have been accelerating their efforts in fusion research through both public and private sector initiatives.
Supply chain concerns
There are particular concerns about the supply chain needed for nuclear fusion.
The most promising type of fusion primarily needs deuterium and tritium as fuel. Deuterium can be extracted from seawater, and tritium can be bred in fusion reactors using lithium. These are relatively easy to source, especially compared to the uranium and plutonium needed for nuclear fission.
Aside from the fuel, there are many other components needed. The supply chain for fusion technology is both specialised and fragmented, involving a complex web of suppliers that provide everything from advanced superconductors to high-precision magnets, cryogenics, and high-temperature materials. Europe currently plays a central role in the global fusion supply chain, but vulnerabilities exist.
One of the most significant challenges is the limited number of suppliers capable of producing the highly specialised components needed for fusion reactors. For instance, the production of components like superconducting magnets or vacuum vessels involves only a few companies across Europe, making the supply chain susceptible to disruption.
According to the Fusion Industry Association’s Supply Chain Report for 2024, the supply chain is rapidly developing globally – with spending increasing from $485 million in 2022 to $612 million in 2023.
Fusion companies reported plans to spend 21% more on their supply chain in 2024 versus 2023. But at the same time, a variety of critical components were highlighted as having current or future supply risks, including cryogenic devices, HTS wire, power electronics, and vacuum chambers.
“Greater long-term certainty around financing and policy is still needed to give the supply chain confidence to scale up to meet future needs of the fusion industry,” the report concludes.
European companies reported particular concerns about supplying these components as they scale up – with a particular concern being that some of the most complex and expensive components come from a single supplier.
Business incentives
Companies raised concerns to the FIA that they are not yet seeing business incentives in place, and there were worries that complex export and import regulations will make it hard to source parts that are not available inside the EU. Laser components, HTS wire, and power electronics were highlighted as areas of particular concern.
Commercial power plants could need millions of power semiconductor components and high-voltage capacitors, potentially turning fusion power into the largest customer for this limited production and creating concern about overreliance on single-source suppliers or geographies.
“Europe boasts one of the world’s most advanced research and development ecosystems, with numerous pioneering laboratories driving progress in fusion energy,” noted FIA’s EU director Cyrille Mai Thanh.
He said: “The continent’s supply chain is already well-organised, but the central challenge now lies in building and commercialising fusion power plants to deliver energy to the grid. While the U.S. enjoys robust private investment in fusion and Chinese companies benefit from strong governmental support, European startups struggle with both limited private investment and public funding, not to mention the lack of regulatory framework for fusion creating uncertainty.”
“Raising money is a real issue in Europe,” he added. “So far, the highest fundraising by a fusion company was not more than €100 million compared with over $2 billion in the US just for one company. Financial incentives are critical because the development and deployment of fusion technologies are expensive and take time. Stimulating private capital by de-risking investment through public guarantees would help European fusion startups scale up faster.”
Public support for competitiveness
The European Commission has identified fusion as a keen area of research and development interest, and there is hope that the Draghi report will motivate the EU executive to tackle the competitiveness gap.
At a Euractiv event last year, the Commission’s Deputy Director-General responsible for the coordination of Euratom policies, Massimo Garribba, told the audience that the Commission is thinking about how to respond to the changing needs as fusion moves from a research phase to one with more commercial needs, particularly with increased private sector involvement.
“There are colleagues from the private sector who talk about timetables which are much more aggressive than those we have in ITER, where we should get the full performance in 2035. They’re talking about commercial deployment much earlier; it’s a ten-year difference in what we’re talking about,” he said. “This is potentially the benefit of the ecosystem and the possibility of having disruptive technology from the private sector.
The Draghi Report painted a sobering picture of Europe’s current position in the global race for fusion energy in the context of a generally concerning situation for competitiveness. But it also provides a blueprint for regaining and maintaining competitiveness.
Draghi has argued that ramping up investment in research and development, fostering collaboration, and securing the future of supply chains will be key to safeguarding Europe’s competitiveness. The sector will be looking to policymakers for how some of these concerns can be addressed as fusion moves into the next phase.
[Edited By Brian Maguire | Euractiv’s Advocacy Lab ]