Proxima Fusion has signed a memorandum of understanding (MoU) with Bavaria, RWE and the Max Planck Institute for Plasma Physics (IPP) to connect the world’s first commercial stellarator fusion power plant to the grid in Europe.

The agreement outlines building a demonstration Alpha stellarator near the IPP in Garching during the 2030s, designed to achieve net energy gain and validate commercial technologies. Alpha paves the way for the Stellaris fusion power plant, planned for Gundremmingen, the site of a former nuclear fission power plant currently being decommissioned by RWE.

Proxima Fusion will lead on engineering, procurement and construction (EPC), IPP will handle plasma physics and the scientific leadership of the Alpha demonstration stellarator, RWE will bring its power plant expertise, and Bavaria will support permitting and funding. The partners aim to secure federal backing under Germany’s High-Tech Agenda, with Proxima funding 20% privately and Bavaria contributing another 20%.

Stellaris and Alpha promise thousands of jobs in construction, magnets and manufacturing, reducing Europe’s energy import reliance. Proxima CEO Francesco Sciortino called it "a milestone that visibly positions the European fusion industry on the global stage".

RWE CEO Markus Krebber highlighted Germany’s research edge and the Gundremmingen site’s advantages in terms of existing infrastructure. IPP’s Sibylle Günter noted Germany’s leadership in stellarator research, while Bavarian leaders Markus Söder and Hubert Aiwanger framed fusion as baseload clean power for electric mobility, AI and data centres.