Total investment in the fusion industry now stands at over $7.1bn with government funding increasing 57% in 12 months to $426m and timelines on track for deployment in the 2030s, the Fusion Industry Association (FIA) said in its annual report.
The fourth annual Global Fusion Industry Report showed that investments in fusion energy efforts globally increased for another year, but the growth was slower than in the previous two years as many companies in the industry expect funding to be a major challenge in the medium term.
The increase in investments was lower than the 2023 estimated jump of $1.4bn in new funding and the massive $2.8bn that the fusion energy industry attracted in 2022 alone.
Two-thirds of respondents said funding will be a major challenge in the next five years, said the FIA, a non-profit organisation whose members are private companies working in the nuclear fusion industry.
Total funding came from a wide range of investments across many of the 45 fusion companies, including notable deals such as $100m for Xcimer, $90m for SHINE, and $65m for Helion.
The US is still the global leader for commercial fusion with 25 companies in the survey, followed by the UK, Germany, Japan, and China, all with three.
Switzerland is a new entrant into this year’s report, hosting two fusion companies, while Australia, Canada, France, Israel, New Zealand, and Sweden all have one.
“Ambitious targets need ambitious resources and a step change in growth will be required once private companies deliver results on their prototype machines,” said Andrew Holland, the FIAs chief executive officer.
‘Growth Is Positive, But Will Not Be Enough’
“The growth seen in the last 12 months is positive, but will not be enough to deliver fusion’s ambitious goals. The sector needs continued support from public and private investors if it is to continue to innovate.”
According to Holland, the next few years are vital to making the vision of sustainable and abundant fusion energy a reality.
In another recent report, the FIA said spending on the supply chain for a new generation of advanced nuclear fusion reactors increased from about $485m in 2022 to $612m in 2023 with companies reporting plans to increase that spend by a further 21% in 2024.
The FIA said 77% of its fusion supply chain member companies are investing in increasing their capacity to support the fusion industry, with investments ranging from tens of thousands to several million.
Nuclear fusion is the process by which two light atomic nuclei combine to form a single heavier one while releasing massive amounts of energy – the same process that powers the Sun and all other stars.
According to the International Atomic Energy Agency, if nuclear fusion can be replicated on earth at an industrial scale, it could provide virtually limitless clean, safe, and affordable energy to meet the world’s demand.
