Munich-based magnetic fusion start-up Proxima Fusion has secured €411 million ($469.69 million) in its latest financing round, attracting high-profile strategic backing from Alphabet’s Google and German utility giant RWE.
The funding round, led by XTX Ventures and East X Ventures, propels Proxima Fusion’s valuation to €2.4 billion ($2.7 billion). As part of the landmark deal, RWE has injected €25 million into the start-up and signed an agreement to collaborate on constructing the world’s first stellarator fusion power plant. The facility is slated for development on the site of a former nuclear fission plant in Gundremmingen, Bavaria.
Nuclear fusion replicates the reactions that fuel the sun using lasers or magnets, offering a future of abundant energy without the pollution, long-lived radioactive waste, or greenhouse gases associated with fossil fuels and traditional nuclear fission.
Francesco Sciortino, Chief Executive of Proxima Fusion, stated that the financing demonstrates Europe’s capacity to not only invent breakthrough technologies but also build globally competitive companies around them.
Dr Markus Krebber, CEO of RWE AG, emphasised that strong research and innovative start-ups could make Germany a key player in the sector. He urged federal and state governments to shape framework conditions to accelerate commercial development, noting that RWE is leveraging its decommissioning sites, existing nuclear infrastructure, and regulatory expertise to create significant time and cost advantages in the international fusion race.
