Germany Launches Fusion Milestone Program: Plans to Invest €2.5 Billion to Support Fusion Companies Toward Commercialization

On October 7, 2026, the German Federal Agency for Breakthrough Innovation (SPRIND), on behalf of the German Federal Ministry of Research, Technology and Space (BMFTR), officially launched the Fusion Milestone Program. The program is an important component of Germany's High-Tech Agenda (HTAD), aiming to promote fusion startups and young companies from technology R&D toward demonstration power plant construction through funding support linked to technological progress and commercialization outcomes, further shortening the distance from laboratory research to commercial application of nuclear fusion.

According to the program arrangements, the German government will provide funding support through the “Special Fund for Infrastructure and Climate Neutrality” (SVIK), with plans to invest €500 million in public funds by 2029. In the long term, the total scale of public support funding is expected to reach up to €2.5 billion. SPRIND will comprehensively adopt various financial instruments including equity investment, direct grants, and where applicable, loans, guarantees, and warranties, based on enterprise development stages and project needs, to support fusion companies in advancing key technology R&D, engineering validation, and commercialization layout.

Unlike traditional funding models that primarily support scientific research activities and technology development, the Fusion Milestone Program places greater emphasis on enterprises' own commercialization roadmaps and phased achievements. Participating companies need to propose a complete development plan from their current technology level toward a fusion demonstration power plant, clarifying technical objectives, economic indicators, and verifiable milestones at each stage, and comprehensively considering key factors such as demonstration device construction, supply chain development, strategic partners, scientific research cooperation, intellectual property management, and subsequent financing.

In terms of fund management, the program will establish a dynamic assessment mechanism based on milestone completion. After advancing tasks at each stage, enterprises need to undergo independent external expert evaluation; for enterprises that clearly fail to meet established goals or no longer meet relevant requirements, the program will terminate their support eligibility. At the same time, multiple enterprises and different technology routes will advance in parallel, screening technology solutions with greater development potential through competition and comparison. This mechanism aims to reduce the risks brought by betting on a single technology route, and through phased achievement verification, improve the efficiency of public fund use and the willingness of private capital to participate.

According to the goals set by the program, participating companies ultimately need to submit a Technical Design Report (TDR) to provide a complete design blueprint for a fusion demonstration power plant. Before reaching this goal, the program will also support the construction of technology demonstration devices proposed in Germany's High-Tech Agenda and Fusion Action Plan, promoting fusion technology from laboratory research into the engineering validation stage. SPRIND currently positions this program as a long-term project, planned to continue until 2037, striving to establish a continuous advancement mechanism from technology R&D and demonstration validation to power plant design.

The launch of this program is an important measure in Germany's continuous strengthening of its nuclear fusion strategic layout in recent years. On October 1, 2025, the German Federal Cabinet adopted the Fusion Action Plan, listing nuclear fusion as one of the key technology directions of the High-Tech Agenda, and proposed investing more than €2 billion by 2029 to support fusion research, develop related scientific research infrastructure and key technologies, while promoting the landing of the world's first fusion power plant in Germany. The newly launched Milestone Program further extends policy support to the near-commercialization stage led by enterprises, complementing cooperative research projects such as “Fusion 2040” and “Hubs for Fusion.”

German Federal Minister of Research, Technology and Space Dorothee Bär stated that the fusion field is at a critical stage of transition from basic research to industrialization and commercial application, and Germany hopes to further consolidate its competitive advantage in the field of fusion science and technology through the Milestone Program. She pointed out that the program will leverage private investment as an important supplement to existing scientific research funding measures at the near-commercialization stage, strengthening Germany's position as a base for scientific research and technological innovation.

Rafael Laguna de la Vera, President of the German Federal Agency for Breakthrough Innovation, stated that the program not only supports technology development but will also focus on cultivating enterprises with sustainable development capabilities, continuously optimizing fund allocation through measurable progress, rapid validation, and dynamic adjustment mechanisms. Germany will allow multiple fusion technology routes to compete in parallel and decide subsequent resource allocation based on actual results. Even if some routes ultimately fail to achieve expected goals, the technical experience and research outcomes they generate are still expected to bring value to the fusion field.

From the perspective of nuclear fusion industry development, Germany is attempting to connect the key links between scientific research achievement transformation, engineering demonstration, and power plant design through a combination of long-term public funding, phased technology validation, and enterprise commercialization roadmaps. As funding support gradually tilts toward verifiable engineering progress and enterprise development capabilities, the program is expected to promote further coordinated development of Germany's fusion industry chain, demonstration device construction, and private capital investment, providing policy and funding support for achieving its fusion power plant construction goals.