Alternative Concepts and Key Enabling Technologies for Fusion Power Plants

Background and Scope

The global demand for clean, abundant, and sustainable energy has never been greater. Fusion energy holds the potential to revolutionise energy production by providing a near limitless, carbon-free power source that minimises radioactive waste. It has been broadly recognised as a promising path to producing affordable electricity, according to numerous strategies, reports, such as Draghi[[The Draghi report on EU competitiveness]], and roadmaps unveiled worldwide[[For instance: China, Japan, South Korea, US, UK]].

However, despite significant scientific and technological advancements, commercial fusion energy faces a number of technological, material, and economic barriers. These include:

• Achieving and maintaining the extremely high temperatures and pressures required for sustained fusion reactions
• Engineering materials that can withstand extreme neutron flux and thermal loads over long operational periods
• Developing critical components such as breeding blankets, gyrotrons, first walls, and divertors
• Designing high-power, efficient and high-repetition rate laser systems for inertial confinement fusion, and
• Designing cost-effective and scalable fusion reactors that compete with existing energy sources.

Europe has a competitive advantage in fusion with highly skilled scientists and engineers, leading experimental facilities and, is also the primary contributor and host of ITER[[https://www.iter.org/]], the world’s first fusion experimental device of "power plant level". Europe is also beginning to see growing private investor interest in fusion energy, particularly in emerging companies beyond publicly led initiatives, with a strong push towards commercially viable solutions.

This Challenge, supported by a transfer of budget from Euratom Research and Training Programme[[Euratom Research and Training Programme - Research and innovation]], will therefore support SMEs and start-ups advancing new fusion reactor concepts and key enabling technologies for fusion power plants.

Expected Outcomes and Impacts

The Challenge aims to accelerate the transition from achieving fusion energy gain to the full commercialisation of fusion energy, positioning Europe as a global leader in the field. It supports the Competitiveness Compass for the EU[[Competitiveness compass - European Commission]] by helping fusion energy start-ups and SMEs deploy and scale up their innovative technologies and concepts. Aligned with the Clean Industrial Deal[[Clean Industrial Deal - European Commission]] roadmap, the Challenge contributes to a decarbonised energy mix and strengthens EU funding for the next generation of clean energy technologies. It also contributes towards establishing an innovation ecosystem that fosters investment and promotes growth in the fusion sector.

By developing and scaling up breakthrough innovations for fusion energy, the Challenge is expected to:

• Keep technology leadership in the field of nuclear fusion and build a value chain for the commercialisation of nuclear fusion, expected in 2040
• Enhance competitiveness and nurture the ecosystem of European companies;
• Attract new deep-tech startups and SMEs to the sector
• Facilitate the scaling up of technologies that address critical bottlenecks for the feasibility of commercially viable fusion power plants
• Contribute to the emergence of globally competitive European fusion energy leaders
• Develop new skills and create jobs within the EU, and
• Raise awareness about the potential of nuclear fusion in the private and public sector.

Specific conditions

Fusion systems require the integration of several different technologies[[IAEA-TECDOC-2047]], which stand at varying stages of maturity, from advanced sub-systems to early-stage components. The TRLs of applicants can therefore vary from 4 to 6 at the point of application for support.

Regardless of the area(s) addressed, candidate companies should clearly demonstrate how the proposed innovation advances the TRL or address one or more of the critical bottlenecks, including cost-effectiveness, that affect the design, construction, and operation of commercially viable fusion power plants.

Indicative budget: EUR 20 million in 2027[[This is a continuation of the 2026 Challenge for which EUR 10 million was allocated from Euratom in 2026]]

In view of the contribution transferred to EIC from Euratom for this challenge, it is expected that at least 50% of the indicative budget will be provided to legal entities established in Member States or countries associated to both Euratom and Horizon Europe.