Munich Startup
Proxima Fusion plans first commercial fusion power plant

Proxima Fusion plans first commercial fusion power plant

Proxima Fusion

Proxima Fusion

Saskia Müller

Saskia Müller

Together with partners, the Munich startup Proxima Fusion wants to build a commercial fusion power plant. A demonstration reactor is to be built in Garching beforehand.

March 6, 2026

3 min. read time

Proxima Fusion has signed a memorandum of understanding together with the Free State of Bavaria, RWE and the Max Planck Institute for Plasma Physics. The so-called Memorandum of Understanding, or MoU for short, describes the planned collaboration between the Munich startup and its partners in building a demonstration reactor and a subsequent commercial fusion power plant. In this case, the parties involved want to collaborate on planning, approval procedures, project structure and financing.

The project begins with the demonstration stellarator Alpha in Garching near Munich. Subsequently, the Stellaris power plant is to be built at the former Gundremmingen power plant site.

Demonstrator Alpha: testing and reducing risks

The Alpha demonstration reactor is to be built in the immediate vicinity of the Max Planck Institute for Plasma Physics. The facility is to demonstrate for the first time a positive energy balance of fusion plasma. Plasma refers to an extremely hot, electrically charged state of matter. In a fusion reactor, atomic nuclei fuse together and release energy.

The demonstrator is to test key technologies under realistic conditions and reduce technical risks. The Max Planck Institute for Plasma Physics assumes scientific leadership and research into plasma physics. Proxima Fusion is responsible for engineering, procurement and construction.

Francesco Sciortino, co-founder and CEO of Proxima Fusion, says: 

“This MoU is a milestone that visibly positions the European fusion industry on the global stage.”

Stellaris power plant planned in Gundremmingen

The planned Stellaris fusion power plant is to be built at the site of the former Gundremmingen nuclear power plant. RWE is currently decommissioning the facility. According to the agreement, some of the existing infrastructure could continue to be used.

The partners plan to finance the project from private and public funds. Proxima Fusion intends to finance approximately 20 percent of the project costs through international investors. The Free State of Bavaria is signaling a possible stake of around 20 percent, provided that federal funds flow into the project.

Markus Krebber, CEO of RWE, says: 

“The potential of fusion technology for future energy supply is enormous.”

Sibylle Günter, scientific director of the Max Planck Institute for Plasma Physics, also sees progress on the path to practical use of the technology:

 “The scientific successes of recent years have paved the way.”

According to the project partners, the construction of Alpha and Stellaris could create several thousand jobs. Investments are expected to flow into construction, manufacturing, power electronics and superconducting magnets.

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