Nuclear Fusion Research Shifts Focus: Commercial Niche Products instead of Energy Promises

Charlotte Dering, Alexander Wimmers, Fanny Böse, Claudia Kemfert, Johanna Krauß, Björn Steigerwald and Christian von Hirschhausen

DIW Weekly Report, 2026, vol. 16, issue 7/8, 55-63

Abstract: Nuclear fusion research shifts focus: commercial niche products instead of energy generation. Nuclear fusion, in which atomic nuclei are fused, promises clean, safe, and virtually inexhaustible energy. Since the 1950s, this promise has justified extensive public investment in research, without any real progress being made toward commercial use in the energy sector. However, nuclear fusion research is currently undergoing significant change: while large public research institutions (big science) are unable to progress beyond basic research, private companies are increasingly focusing on subcomponents such as magnet development and laser technology. With the help of an evaluation scheme, the activities of very different private nuclear fusion companies can be compared and conclusions drawn for research and innovation policy. Four companies are examined in terms of their development status and potential. The comparison shows that private companies are increasingly focusing on components and sub-areas that could be commercially exploited in the short- and medium-terms. In contrast, the expectations for large-scale research extend far beyond the 2050s. Thus, German research policy should not stick to the goal of using nuclear fusion for energy generation, but rather focus on the innovative momentum of private actors while fundamentally evaluating the existing structures of publicly funded large-scale research.

Keywords: nuclear fusion; economics; R&D; laser; magnets (search for similar items in EconPapers)
JEL-codes: L51 L95 Q48 (search for similar items in EconPapers)
Date: 2026
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