However, several critical non-technical obstacles prevent startups from turning fusion energy into a reality. Aleksei Zolotarev, Founder & CEO of Next Step Fusion, highlights these key challenges and offers insights on how startups can overcome them, propelling the technology towards commercialisation.

Nuclear Fusion and Its Current Solutions

Thermonuclear fusion is a process akin to what powers the Sun and other stars, where atomic nuclei merge to form a heavier nucleus, releasing vast amounts of energy. Unlike nuclear fission, which splits atoms and produces long-lived radioactive waste, fusion offers a much cleaner and potentially limitless energy source with minimal environmental impact. If this reaction can be replicated on Earth, it would provide a safe and affordable energy source to meet global demand without emitting carbon dioxide, the main driver of climate change.

Research into nuclear fusion began in the 1950s. Due to its high costs and technical complexities, fusion energy remained largely confined to government research institutes, which operated in relative isolation without close international collaboration. This situation persisted until the 1990s when the decision was made to construct ITER – an international fusion reactor aimed at uniting the efforts of leading nations and demonstrating the potential for generating industrial-scale energy from fusion.

In the early 2000s, the first commercial companies interested in the industry emerged. In recent years, an increasing number of private startups have entered the market, independently developing fusion devices. Today, around 50 companies worldwide are actively working on this technology.

For instance, Commonwealth Fusion Systems is developing a compact tokamak – a device that uses powerful magnetic fields to contain the hot plasma necessary for initiating a fusion reaction. Helion Energy is creating the first commercial fusion reactor for Microsoft, using a pulsed magneto-inertial approach, which allows for a more compact and potentially more cost-effective setup compared to traditional fusion methods. Tokamak Energy is also working on compact tokamaks using new materials, such as high-temperature superconductors, which could enhance plasma containment efficiency and accelerate the development of fusion energy.

At Next Step Fusion (NSF), we are developing simulation software, ML-based plasma control systems, tokamak optimization software, and digital twins for tokamaks and future fusion power plants. Given that plasma containment and control are critical aspects of fusion energy, we employ machine learning for plasma simulation and control, as well as for tasks such as monitoring, fault prediction, maintenance planning, and staff training.

In addition to technological challenges like plasma control and the development of efficient reactors, the industry faces several other significant hurdles that hinder its potential. I will discuss these further in the next section.

Challenges for Fusion Startups and Their Solutions

One of the greatest challenges is low public awareness. Fusion energy holds immense promise, yet the general public remains largely unaware or misinformed of it. Many people lean towards what they already perceive as green energy, simply because they lack knowledge and understanding of fusion. This lack of awareness fosters misconceptions, with fusion often seen as a distant, almost science-fiction concept. However, the current level of technological development suggests otherwise – fusion is no longer a distant dream but a very real and achievable goal.

It’s important to recognize that, beyond private companies, the state has the unique ability to drive the widespread implementation and promotion of large-scale ideas. By actively collaborating with the fusion industry, the state can lead efforts in multiple directions. This challenge can be effectively addressed through comprehensive education initiatives. Demystifying fusion technologies and showcasing their potential as a leading source of clean energy are crucial. Simplifying complex concepts into accessible language and fostering open dialogue will help bridge the knowledge gap, garnering increased support from businesses, governments, and the public alike.

As small startups, we are doing what we can to advance fusion technology, but we recognize that a global shift in society’s perception of fusion can only occur through sustained media attention and the promotion of the fusion industry's achievements. Public dialogue plays a crucial role in making fusion more understandable to a broader audience and helps create a robust informational environment that supports the industry's development.

Another challenge is the lack of specific regulatory frameworks. Historically, fusion research has been conducted in laboratories overseen by regulators responsible for nuclear fission. However, since fusion was far from commercial operation, regulators were in no hurry to develop dedicated regulatory frameworks for fusion. In some cases, this has led to overly strict requirements that fail to consider the lower risks specific to fusion energy. At present, there are no well-defined regulatory frameworks for fusion, and regulators are only now starting to take initial steps towards establishing suitable regulations.

Most scientific fusion devices operate for a limited amount of time per year, produce short discharges, and neither store nor produce tritium, among other constraints. However, once fusion reactors and fusion power plants begin construction, regulators will need to develop a more comprehensive and standardised framework to ensure safety and compliance.

Special attention must be given to the regulation of tritium, which will be used as fuel in the first fusion reactors. While tritium is a radioactive isotope with dual-use potential, its risks are significantly lower compared to uranium or its isotopes. For example, after the Fukushima accident, a relatively large amount of tritium ended up in the ocean without causing major environmental harm. Fusion reactors will contain far less fuel than fission reactors, so specific safety standards for tritium should be developed based not only on the substance itself but also on the much smaller volumes involved. These standards should differ from those currently applied in research facilities to reflect the unique conditions of commercial reactors.

We anticipate additional regulatory challenges, as the use of machine learning in reactor control will demand a new regulatory approach. Although we are not yet implementing it, we are concerned that future regulations may not adequately address the complexities of this technology.

To expedite the development of regulatory frameworks, startups can actively collaborate with regulatory bodies, sharing their expertise and data to create more flexible and relevant standards. Participation in pilot projects and providing safety information will help better understand the technological processes and associated risks.

Finally, insufficient funding remains one of the key challenges for startups in this field. The fusion industry has attracted over $7.1 billion in total investments over its entire history, which is negligible compared to investments in trivial mobile apps or web services. For instance, while fusion secured more than $900 million in new funding in 2023, the mobile gaming sector alone attracted $2.4 billion in the first quarter of 2024.

Government projects, such as ITER, require multi-billion-euro investments, but these experimental facilities risk becoming obsolete due to slow construction and the rapid pace of technological advancement. Instead, governments could focus on supporting private companies by creating a predictable regulatory environment and attracting venture capital to accelerate innovation.

Additionally, the industry’s development is hampered by the limited number of investors and startups in the fusion sector. Over the past two years, approximately 222 investors have invested in at least one of the 45 companies working in this field. Attracting new players will not only increase financial inflows but also speed up innovation and commercialisation of fusion technologies. Examples of well-known investors such as Bill Gates, Jeff Bezos, and Sam Altman, who have already invested in this area, show that with the right conditions, the industry can attract even more attention and resources.

Fusion energy has the potential to transform global energy systems, providing a clean, safe, and virtually limitless power source. While technical advancements are crucial, addressing non-technical challenges – such as public awareness, regulatory frameworks, and funding – will be equally important in making fusion energy a commercial success. By collaborating with governments, educating the public, and fostering a favourable regulatory and investment environment, fusion startups like Next Step Fusion can help bring this revolutionary technology to market.