Proxima Fusion and Kyoto Fusioneering Sign MOU to Advance Fusion Supply Chain in Germany

Stellarator developer Proxima Fusion and fusion technology provider Kyoto Fusioneering have signed a Memorandum of Understanding to deepen cooperation on critical technologies required to build and operate commercial fusion power plants. The agreement was signed in Tokyo during a visit by Germany's Chancellor Merz to Japan.

Scope of Collaboration

Under the MOU, the two companies will expand ongoing joint work in two principal areas: next-generation gyrotrons for plasma heating, and fusion fuel cycle technologies. Both are considered essential engineering disciplines for any commercially viable fusion power plant.

Kyoto Fusioneering will additionally bring its technologies and engineering expertise to bear on the commercialization and industrial deployment of fusion energy in Germany. This includes participation in the national Fusion Hubs initiative, a programme overseen by Germany's Federal Ministry of Research, Technology and Space (BMFTR).

Supply Chain and Industrial Rationale

The agreement is explicitly framed around strengthening the industrial supply chain underpinning Germany's ambitions in fusion energy. According to the companies, it combines Japan's established expertise in fusion engineering with Germany's stellarator research capabilities and industrial base.

The partnership reflects a broader trend of bilateral industrial agreements as governments and private developers seek to translate fusion science into firm, dispatchable, and clean energy generation.

Proxima Fusion Roadmap

The MOU is intended to support Proxima Fusion's published development milestones. The company is targeting Alpha, a demonstration stellarator, for the early 2030s, followed by Stellaris, its first commercial fusion power plant, which it expects to be ready before 2040.

Kyoto Fusioneering, headquartered in Japan, has positioned itself as a technology and engineering partner across multiple international fusion programmes. Its involvement in the German Fusion Hubs initiative marks a concrete step toward cross-border industrial integration in the fusion sector.

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.