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Bavaria, Proxima, IPP and RWE launch merger alliance
Memorandum of Understanding paves the way for demonstrator "Alpha" in Garching and commercial fusion power plant "Stellaris" in Gundremmingen
02.03.2026
Source: Proxima Fusion GmbH, Bayern Innovativ GmbH
A milestone for the European fusion industry was set in Munich: The Free State of Bavaria, Proxima Fusion, the Max Planck Institute for Plasma Physics (IPP) and RWE AG have signed a Memorandum of Understanding (MoU).
The MoU formulates a clear roadmap towards Europe's first grid-connected magnetic fusion power plant and provides for a joint co-financing model from public and private funds.
Two reactors as a target
The partnership is pursuing two central projects:
- Construction of the "Alpha" demonstration stellarator in Garching near Munich
- Development of the first commercial magnetic fusion power plant "Stellaris" in Gundremmingen
The "Alpha" demonstrator is intended to achieve a positive energy balance of the plasma for the first time and thus pave the technological and economic way for commercial use. Proxima Fusion is responsible for engineering and construction, while IPP is responsible for scientific management.
Proxima Fusion is receiving a grant of up to 400 million euros for "Alpha" as part of the Bavarian high-tech strategy. The project is regarded as a central building block for systematically bundling research, industry and capital.
Strategic location Gundremmingen
The planned "Stellaris" power plant is to be built at the former nuclear power plant site in Gundremmingen. The existing infrastructure offers clear advantages in terms of approval, speed and costs. RWE will contribute its extensive operating experience.
As part of the investor conference FusionX: Global, which we at Bayern Innovativ brought to Germany for the first time together with the FusionX Group, Tobias Gotthardt, Bavarian Ministry of Economic Affairs, Dr. Cord-Henrich Lefhalm, RWE and Francesco Sciortino, Proxima Fusion, discussed the importance of the cooperation. The panel was moderated by Dr. Rainer Seßner, Bayern Innovativ GmbH.
Francesco Sciortino emphasized: "This MoU is a milestone that visibly positions the European fusion industry on the global stage. It marks the starting point of an industrial ecosystem that bundles existing and new know-how in Europe and anchors value creation here." and "We are incredibly grateful that Bayern Innovativ supports us and the entire ecosystem. FusionX came to Munich because of Bayern Innovativ and this event is the most important thing for Fusion. The ecosystem meets with investors. Without Bayern Innovativ, we would not have networked so well with the Bavarian government to bring together an event like this. This morning we had a press conference with the Bavarian government, RWE and the Max Planck Institute for Plasma Physics and we also talked about FusionX. I think the whole ecosystem is grateful that this is happening now, because the international system sees that something special is happening here."
Industry, speed and investment
The bundling of politics, science, industry and capital is intended to create speed. The co-financing model sends a clear signal to international investors. A large proportion of the investment flows directly into the industrial supply chain, from superconducting magnets to power electronics and power plant infrastructure.
Several thousand jobs are already expected during the construction phases of "Alpha" and "Stellaris". Bavaria is thus positioning itself as a core European location for the commercialization of fusion energy.
In addition to Proxima Fusion, other fusion companies such as Marvel Fusion and Gauss Fusion are active in Bavaria. Bavaria is consciously focusing on technological diversity and wants to become the home of fusion technology in Europe.
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