Government commits $35m to back NZ fusion energy start-up

The Government is investing up to $35 million to support a New Zealand start-up aiming to develop fusion energy technology, a move it says could position the country at the forefront of a global race for next-generation power.

Regional Development Minister Shane Jones says the funding, provided as a loan through the Regional Infrastructure Fund, will support OpenStar Technologies to build a specialised facility for its next fusion machine.

“The successful development of fusion is the holy grail of energy production. It could be a game-changer for this country’s energy security, economy and environment,” Jones says.

Fusion energy seeks to replicate the process that powers the Sun by fusing light atoms into a larger atom, releasing large amounts of carbon-free energy.

“New Zealand’s OpenStar Technologies, led by Dr Ratu Mataira, is one of more than 50 companies worldwide competing to deliver a breakthrough in fusion energy. OpenStar is developing a different design approach to its competitors which offers advantages in stability, cost and scalability,” Jones says.

The Minister drew parallels with New Zealand’s scientific history.

“Over a century ago, New Zealand scientist Ernest Rutherford pioneered nuclear science. Today we are backing New Zealanders to lead the next big breakthrough in harnessing fusion energy, a technology that could deliver significant benefits for our country and the world.

“The Government’s substantial investment in the project will help anchor a bespoke fusion energy research and development facility in New Zealand.

“It will also enable OpenStar to scale up its research and development programme, helping to attract international investment and creating high-value jobs here in New Zealand.

“The project has the potential to uncover spinoff applications for the aerospace and medical technology sectors. These could potentially have enormous benefits in the medium term, while the technology further evolves towards the ultimate goal of delivering fusion energy.

“This funding supports infrastructure that drives economic growth, fosters innovation, boosts productivity and strengthens energy security,” Jones says.

OpenStar is one of more than 50 companies globally pursuing commercial fusion, as governments and private investors pour billions into efforts to unlock a potential near-limitless source of clean energy.