Israel Releases Draft National Fusion Strategy With Up to $650 Million Investment Scenarios

First National Fusion Policy Document

In October 2026, Israel's Ministry of Energy and Infrastructure released a draft national fusion strategy — the first of its kind for the country — and opened it for public comment. The document sets out a framework for positioning Israel as a supplier to the emerging global fusion industry, drawing on capabilities developed in the defense sector and existing research infrastructure.

The strategy identifies a narrow window for countries to enter fusion supply chains before they consolidate around established players. It notes that private fusion companies have raised approximately $16 billion since 2021, and that governments in multiple major economies are already funding national programs and building supplier networks.

Three Scenarios, One Recommendation

The draft presents three investment scenarios ranging from $135 million to $650 million. The Ministry recommends Option 2 — a National Fusion Research Center — with a proposed spend of $150–350 million over a five-to-seven-year horizon.

Option 2 would establish several public-private technology consortia, upgrade national neutron and high-power laser facilities, and introduce milestone-based funding for companies modelled on approaches used in the United States. A new graduate track and programs to attract overseas-based experts are also included. The Ministry describes this option as the most balanced choice, closing key capability gaps without committing the full state budget to a comprehensive national program at the outset.

Identified Supply-Chain Strengths

The strategy maps existing Israeli capabilities that could be adapted for fusion applications, particularly technologies with dual-use origins in the defense sector.

  • Power electronics and radio-frequency systems for plasma heating in magnetic-confinement reactors
  • Artificial intelligence, simulation, and digital-twin tools for real-time plasma control and secure plant operation
  • Precision engineering and vacuum systems for reactor vessels
  • The SARAF accelerator at Soreq, cited as a world-class asset for testing materials under neutron radiation

Longer-Term Ambitions

With additional investment beyond the recommended scenario, the strategy states that Israel could compete in tritium-breeding blanket manufacturing and superconducting magnet design — two high-value fusion components where global supply chains are still forming.

Regulatory and International Objectives

The strategy sets out several organizational goals alongside the funding scenarios.

  • A regulatory framework that treats fusion separately from nuclear fission, including a regulatory sandbox to attract companies to conduct testing in Israel
  • A national policy on tritium and other export-controlled fusion components, developed in cooperation with the United States
  • Closer engagement with international programs and partners, including ITER, the US Department of Energy, and bilateral funds such as BIRD
  • Doctoral and postdoctoral fellowships, a new inter-university graduate program in fusion, and an annual Israeli-international fusion conference and investor event

Next Steps

The draft remains open for public comment while the government evaluates which scenario to adopt and fund. No timeline for a final decision has been specified in the published document.

EPC Talks Collapse for Czech Dukovany New-Build; CEZ to Relaunch Procurement

Negotiations Break Down After Prolonged Talks

Korea Hydro & Nuclear Power (KHNP) has ended construction contract negotiations with a consortium led by Daewoo Engineering & Construction for the $18.6 billion (€16.5 billion) project to build two APR1000 reactors at the Dukovany site in the Czech Republic. KHNP stated that the two parties were unable to reach agreement on key contract terms despite an extended negotiation period.

According to the consortium, the immediate trigger was a set of revised contract terms submitted by KHNP on 7 October 2026, which gave the consortium approximately three weeks to review the proposed changes. Reports from South Korea indicated that the broader breakdown followed more than a year of discussions over construction costs and the allocation of financial responsibility for design modifications.

Industry sources said KHNP had demanded a reduction of more than 10% from the consortium's original bid price, a cut equivalent to over $750 million. The consortium, which includes Doosan Enerbility alongside Daewoo E&C, called for negotiations to resume following the breakdown.

CEZ Moves to Terminate Cooperation Agreement

Czech state-controlled utility CEZ announced on 28 October 2026 that it would move to terminate its cooperation agreement with the Daewoo-led consortium and initiate a new bidding process to identify a replacement EPC contractor. The decision represents a significant procurement reset for a project that had already reached an advanced contracting stage.

The Dukovany project involves two large-scale APR1000 units to be built at the existing Dukovany nuclear power station in the southern Czech Republic, located approximately 50 kilometres from the Austrian border. A government-backed intergovernmental deal between Czech nuclear project company EDU II and KHNP was signed in June 2025. Daewoo E&C and Doosan Enerbility had been selected as construction partners in 2018 and participated in the original bidding process.

KHNP vice-president and head of project operations Choi Il-kyung was quoted by The Korea Herald as playing down the risk of major disruption to the overall project timeline, though no further detail on a revised procurement schedule was provided in available statements.

Supply-Chain Implications

The collapse of EPC talks introduces material uncertainty into the construction supply chain for one of Europe's largest planned nuclear new-build programmes. With CEZ now required to run a fresh contractor selection process, the timeline for mobilising civil and mechanical works at Dukovany is likely to face revision. The scale of the cost dispute — centred on who bears the financial burden of design changes — may also influence how future EPC packages for APR1000 projects are structured elsewhere.

BWXT Advanced Fuels Signs Multi-Year TRISO Supply Agreement with Antares Nuclear

BWX Technologies has announced that its BWXT Advanced Fuels subsidiary has entered into a multi-year commercial agreement with Antares Nuclear, Inc. to produce tri-structural isotropic (TRISO) nuclear fuel in support of Antares' advanced reactor program.

The agreement establishes a framework for fuel production beginning with an initial allocation of 1 MTU (metric ton uranium). Terms allow for the contracted volume to increase as Antares' deployment requirements evolve over time.

Facility and Production Line

Fuel deliveries under the contract will be manufactured at BWXT's Lynchburg, Virginia facility. The production will take place on the same TRISO fabrication line previously used to supply fuel for Antares' Mark-0 reactor and for Project Pele, a 1.5 MW transportable microreactor developed for the U.S. Army.

Specific quantities, delivery schedules, and technical requirements will be defined through a series of future task orders issued as the Antares reactor program advances, giving both parties flexibility to align supply with program milestones.

Recent Program Milestones

The contract follows a series of documented technical achievements on the Antares program. Earlier in 2026, BWXT-produced TRISO fuel supported Antares' Mark-0 criticality milestone, marking a significant step in the reactor's development.

Separately, BWXT delivered a full core of TRISO fuel for Project Pele to Idaho National Laboratory in December 2025. Formal prototype testing for that program is planned to begin as early as 2027.

Supply Chain Significance

The agreement represents one of the first multi-year commercial TRISO fuel supply contracts tied to a private advanced reactor developer's deployment schedule. For nuclear fuel cycle professionals, the structure — an initial fixed allocation with scalable task orders — reflects an emerging procurement model suited to the phased development timelines common among advanced reactor companies.

TRISO fuel, characterized by its ceramic-coated particle design, is a key enabling technology for several advanced and microreactor concepts currently under development in the United States.