Provisionaltranslation

Fusion Energy Innovation Strategy

14 April, 2023
The Integrated Innovation Strategy Promotion Council

Contents
1.

Introduction ......................................................................................................... 1
 Energy, environmental problems in Japan ..................................................... 1
 Fusion energy as a solution ........................................................................... 1
 Fusion energy as a new industry ................................................................... 22.

Vision for a National Strategy .............................................................................. 4

3.

Basic concepts and specific measures for realizing the vision ............................ 4
3-1 Developing the fusion industry ......................................................................... 4
Visualization ........................................................................................................ 5
Connections ........................................................................................................ 7
Fostering ............................................................................................................. 7
3-2 Developing the fusion technology ..................................................................... 8
3-3 Framework for promoting the Fusion Energy Innovation strategy .................... 94.

Conclusion: Society realized by fusion energy .................................................. 11

1.

Introduction

 Energy, environmental problems in JapanCountries around the world are accelerating their efforts to achieve carbon neutrality
as a common target for humankind in response to the deepening impact of climatechange such as extreme weather, Japan is also moving forward with various initiatives
for realizing a carbon-neutral society by 2050.
In particular, the rapidly rising energy costs in the crude oil and natural gas markets
caused by the Russia’s aggression against Ukraine in February 2022 have changed
the contours of the world’s energy situation in a way unseen up to now, impacting
Japan as well. For Japan, whose energy self-sufficiency rate is 13.4% 1-- quite low
compared to that of other OECD countries 2 -- ensuring its energy security whiletransitioning from fossil fuels to clean energy sources from now is a pressing issue.
 Fusion energy as a solution
Fusion energy is energy produced when two light nuclei (deuterium, tritium) fuse toform a single heavier nucleus (helium), the same kind of energy that illuminates the
Sun and stars.
Fusion energy has the following advantages:
1) Carbon neutrality
Carbon dioxide is not emitted during the process of power generation;2) Abundant fuel (On top of the fact that the fuel exists abundantly in seawater and can begenerated nearly inexhaustibly, a huge amount of energy can be produced by asmall amount of fuel;3) Inherently safe
The nuclear reaction stops when the fuel supply or the power supply is cut off;
4) Environmental preservation
Only a low level of radioactive waste is generated and it can be processed withexisting technology) ;As such, fusion energy is expected to be the next-generation energy source that cansolve both energy problems and global environmental problems at the same time.
Moreover, since seawater, the source of the fuel, covers two-thirds of the surface of
the Earth and numerous countries, they can produce the fuel as long as they have thetechnology, and the problem of the unequal distribution of energy resources can be
1 Comprehensive Energy Statistic Preliminary figures for 2021

2 Energy self-sufficiency rates for other countries in 2020 (Japan’s rate from Japan`s Energy. 10questions about energy--FY2022 Edition): Canada: 182.6%, USA: 106.0%, United Kingdom: 76.0%,
France: 54.9%, Germany: 34.7%)

1eliminated. Thus, providing great hope that fusion energy will contribute to world peaceand stability. At the same time, as energy hegemony will shift from those countries
possessing energy resources to those possessing the technology, it will become vitalto ensure energy security through the acquisition of technology. In the ‘Sixth Basic
Energy Plan’ 3, the policy for nuclear power is to reduce dependance on nuclear power
as much as possible and to utilize the necessary scale of nuclear power on asustainable basis. In addition, based on ‘the Basic Policy for the Realization of GX’ 4,
a shift to decarbonized power sources such as renewable energy and nuclear power
will be promoted to overcome the current energy crisis. The development of humanresources by this promoting of nuclear power generation will also contribute to thedevelopment of fusion energy in the future. On the other hand, based on the fact that
nuclear fusion possesses special characteristics (inherent safety, environmental
preservation, etc.) arising from the differences in the physical principles underlying
nuclear fission and that “nuclear fusion” as an academic term is called “fusion” in theenergy field in the UK and the US in recent years, this strategy labels nuclear fusionenergy as “fusion energy” to prevent misunderstanding arising from the confusion with
nuclear fission.
 Fusion energy as a new industry
An international project, ITER has required the production of equipment and devices
using advanced technology unseen up to now. However, through the development of
manufacturing technology, the core assembly of ITER’s facilities began in 2020, and77.5% of the construction activities that will lead to the First Plasma have been
completed (as of December 2022). Moreover, as a result of improvements in
confinement technology for the implosion method by high-power lasers, in December
2022, researchers at the Lawrence Livermore National Laboratory succeeded for the
first time in history in generating more energy from a fusion reaction using thedeuterium-tritium fuel than was necessary to produce it. 5
With the trend toward global carbon neutrality, such government-led scientific andtechnological breakthroughs are being made, and private-sector investment in thisarea is also increasing in many countries. 6 Spurred by this booming private-sector
investment, fusion start-ups in the US, the UK, and elsewhere are accelerating fusion
R&D competition with setting ambitious targets for fusion power generation 7 ahead of
3 22 October 2021 Cabinet decision

4 Basic Policy for the Realization of GX - Roadmap for the Next 10 Years (Cabinet Decision, 10
February 2023)
5 The fusion reaction was achieved on December 5, 2022, and the US Department of Energy
announced the research results on December 13. The fusion ignition produced 3.15 MJ of energy, 1.5
times the 2.05 MJ of laser energy provided.
6 According to the Fusion Industry Association, private-sector investment has amounted to some $2
billion up to 2021, and it predicts another $2.7 billion in private-sector investment in the future.
7 Commonwealth Fusion Systems in the US: development of demonstration SPARC reactor in 2025,
and commercial operation of ARC reactor in early 2030s; Tokamak Energy in UK: operation of ST-E1
pilot plant in early 2030s and operation of commercial reactor in mid-2030s; TAE Technologies in US:

2the schedules of government plans up to now. Moreover, China is also making strong
progress in its plans 8 for the government-led construction of experimental equipment
and a prototype reactor, which could make China a very strong competitor in fusion
research and development.
To produce fusion energy, a cluster of various technologies (“fusion technologies”)
such as those for producing strong magnetic fields from high voltage currents andvacuums produced by high pressure is necessary. The industry (“fusion industry”)
serving as the foundation for fusion technologies is broad-based, and it is also
expected that ripple effects of fusion technologies will spread to other fields.
The funds invested in fusion start-ups are invested in various type of companies in theform of investment for joint research and equipment procurement, and supply chainsare being created overseas. The US and the UK governments formulated their national
strategies (US: March 2022; UK: October 2021)9 targeting the commercialization offusion energy, and have started confining relevant technologies to their own countries.
The race to commercialization has already begun without waiting for the actual
realization of fusion power generation.
Japan is a strong partner candidate for other countries, because Japan possesses
technological advantages cultivated through its research and development, reliability
in its manufacturing industries, and the basic research infrastructure and humanresources development frameworks for supporting those industries. The synergistic
effects from cooperation with other countries allow the utilization of partner countries’
technologies for domestic development and provide opportunities10 for the acquisitionof overseas markets. At the same time, considering the accelerating pace in othercountries, Japan is facing the risk of lagging behind in commercialization though it
provides technology and losing market competitiveness as a result. In particular,
fusion technologies, which produce ripple effects to other industries, are important for
ensuring economic security based on technological security.
To take the shortest route to the commercialization of fusion energy in Japan, , Japan
will strongly promote the approach of the ITER Project and BA Activity followed bydevelopment of a DEMO reactor, because the clarification of the cost and timing of a
prototype reactor’s power generation demonstration period and the prompt
operation of commercial reactor in early 2030s; UK government-led UK Atomic Energy Authority(UKAEA): operation of prototype STEP reactor by 2040s.
8 Operation of CRAFT research facility complex to acquire core fusion technologies from 2025;
operation of BEST demonstration reactor using actual fuel from 2027; construction of an engineering
test reactor, which is on the same scale as ITER’s, by 2030s and modification to power generation
reactor by 2050s.
9 The United States held a symposium titled “Developing a Bold Decadal Vision for Commercial
Fusion Energy” at the White House. The United Kingdom formulated its “Towards fusion energy: thefusion strategy.”
10 In January 2023, the UK’s Tokamak Energy Ltd. and Furukawa Electric Co., Ltd. signed anagreement regarding the provision of high-temperature superconducting wire.

3

construction of a DEMO reactor are essential. In addition, to take advantage of thisopportunity and keep pace with other countries’ moves to commercialization, Japan
regards fusion energy as a new industry and needs to adopt a multifaceted approach,including entering without delay the global supply chains that are being created.
By doing so, in addition to making more robust the DEMO development approach byutilizing the new technologies and innovation developed in the process ofcommercialization, Japan will be able to build from now the foundation for the future
fusion industry ecosystem and take new measures for accelerating the realization offusion energy.
2.

Vision for a National Strategy

Based on the background described above, the government labeled its fusion strategy
for the coming ten years as: “Towards the practical realization of fusion energy, theworld’s next-generation energy source — The commercialization of fusion energy:
Seizing the winning market edge by leveraging Japan’s technological advantage.”
It will be necessary to promote the further participation of Japan’s private-sector
companies and for industry, academia, and government to collaborate in the efforts
for realizing this vision for fusion energy. The government has formulated a national
strategy for this vision, which will incorporate concrete action for pump-priming private
investment.
3.

Basic concepts and specific measures for realizing the vision

The basic concept for realizing the vision is the integrated promotion of strategies fordeveloping the fusion industry, developing fusion technologies, and framework for
promoting the Fusion Energy Innovation strategy. The following are concrete tacticalactions for realizing the fusion energy vision.
(The following acronyms and titles are used below: Cabinet Office; MOFA [Ministry ofForeign Affairs]; MEXT [Ministry of Education, Culture, Sports, Science andTechnology]; METI [Ministry of Economy, Trade and Industry]; MOE [Ministry of theEnvironment].)
3-1 Developing the fusion industry
Considering the trends of private companies worldwide and large-scale investment
these days, it is important for Japan not to lose opportunities in overseas markets.
While supply and demand will shrink with the decrease in procurement as the ITER
Project progresses, a blank period in supply and demand will arise until supply anddemand expand with the necessary procurement for the building of the DEMO reactor.
Because of that situation, it will be essential to build the foundation for the DEMO withthe aim of establishing a future fusion energy ecosystem and promoting the acquisition4

of necessary technology in anticipation of the participation of private companies in thedevelopment of Japan’s DEMO.
In addition to the further participation of private companies already engaged in thedevelopment of fusion energy, the government will provide continuous support at eachstage in the “visualize, connect, foster” process for promoting the fusion industry andinvolving interested private companies that have not participated in fusion energy up
to now.
Visualization
By providing clearer visualization of the targets of the strategies, the government will
be able to enhance the predictability of the fusion industry and increase theparticipation of private companies in it.
Clarifying the position of fusion energy in society (Cabinet Office [relevant
ministries, agencies])
To clarify the positioning of the fusion industry by backcasting from Japan’s futureenergy mix rather than grasping the social implementation of fusion energy byextending forward from current research and development, the Cabinet Office will
study and consider the social and economic utility and cost targets for fusion energy
in cooperation with relevant ministries and agencies.


Clarifying as early as possible the power generation demonstration period toenhance the predictability of the fusion industry (MEXT)
In addition to acquiring overseas markets, establishing domestic markets is also
important. MEXT’s “Roadmap toward Fusion DEMO Reactor (first report)” 11 sets theperiod for the achieving of power generation around 2050, and the results of study by
MEXT’s Task Force on a Comprehensive Strategy for DEMO Development has shownthat it is possible technically to move that timeline forward. 12 Based on the progress of
the ITER Project and the ambitious targets set by various other countries,7,8 thegovernment will clarify as early as possible the timing for the power generation
demonstration and realize the early completion of the DEMO reactor by accelerating
research and development.
Creation of technology and market opportunity maps regarding fusion energy
showing technology readiness levels, initiatives based on economic security
perspectives (Cabinet Office)To organize supply chains and parties engaged in the fusion industry and promote theparticipation of private companies, the Cabinet Office will create technology and

11 “Roadmap toward Fusion DEMO Reactor (first report)”, July 24, 2018.

12 “Action Plan for development of DEMO based on study for moving forward the timeline for fusionenergy power generation”, October 28, 2022.

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market opportunity maps making clear the industrial needs and the technologies thatare expected to produce ripple effects extending to other industries.

Although the various technologies for fusion energy can be covered by domestic
companies, fusion energy requires a collection of technologies from a wide range offields. Since resources (funds, human resources, time, etc.) are limited, it is essential
to prioritize the investment of resources in required areas rather than trying to evenly
distribute them over all areas. Moreover, since it is necessary to take into
consideration the perspective of economic security that in turn takes into account theaccelerating trends in other countries, strategic initiatives must be taken based on theideas below when conducting research and development and developing the fusion
industry. At those times, in terms of economic security, priority must be given to thosevital areas requiring the highest priority from among those core areas in which Japan
has strengths.
 Core areas of fusion energy systems
These are areas that must be addressed regardless of their market size or Japan’s
strengths or weaknesses in them and that are important in terms of economic security(autonomy, indispensability).
In particular, these are areas in which resources should be focused since thetechnologies that Japan is strong in provide opportunities for acquiring overseas
markets. Moreover, areas that like-minded countries are also strong in should be
addressed while strategically cooperating with those countries. Furthermore, thoseareas that could hinder the realization of fusion energy in Japan if dominated by othercountries should be approached from the perspective of supply chain accessregardless of whether Japan has strengths or weaknesses in them.
 Areas in which fusion technologies are expected to produce ripple effects in other
areas
These are areas that should be addressed to meet market expectations such astechnologies that can be commonly used in various types of fusion reactors regardlessof their positioning in fusion energy systems or whether Japan has strengths or
weaknesses in them. Particularly those areas expected to produce ripple effects(spinouts) to a wide range of industries such as fields related to resources and energy,
medical care, and security are important because they produce expansive effects as
fusion industries as well as promote the further participation of private companies.
 Areas that are expected to integrate existing or new technologies from other fields
These are areas where it is important to integrate technologies from other fields suchas AI analysis and simulations, high-capacity data communication, and so on, in
addition to academic research and development in the field of fusion energy for thesocial implementation of fusion energy systems.
6Connections
The seeds for the new fusion industry will be sown through the matching between
fusion technologies or matching fusion technologies with technologies of other fields.
 Setting of opportunities aiming at the fostering of the fusion industry (Cabinet Office[relevant ministries, agencies])
The Cabinet Office is reorganizing the Fusion Energy Forum of Japan, a forum forindustry, academia, and government, to promote information exchange and businessmatching regarding fusion energy among private companies and to foster the fusion
industry, with the aim of newly establishing the Fusion Industry Council of Japan(provisional name) in fiscal 2023. The Council will allow the participation of privatecompanies as formal members and promote the new participation of interested privatecompanies. The participation of academia and QST 13 will further promote industryacademia-government cooperation.
Fostering
The government will seek to build an environment in which innovation can be created,enabling the social implementation of new products and services as outcomes of thedevelopment of fusion energy.
 Provision of support to close the gap between the technological seeds possessedby private companies, including start-ups, and the industrial needs (Cabinet Office,
MEXT)
Even if private companies have the technological seeds, since further research anddevelopment will be needed until the needs are suitable for social implementation, theCabinet Office and MEXT will support the R&D by private companies that will play amajor role in developing the fusion industry. In particular, support to start-ups will beenhanced from fiscal 2023.
 Discussion with like-minded countries on safety regulations (MEXT, MOFA)The United States, the United Kingdom, and other countries are taking the lead inholding discussions on safety regulations. Since the formulation and standardizationof safety regulations through international collaboration is necessary for acquiring
overseas markets, Japan has been participating in the Working Group holding
discussions on “Approaches to International Fusion Energy Regulations” being
conducted under the Agile Nations 14 framework, and the government will summarize
the Working Group discussions in fiscal 2023.
13 National Institutes for Quantum and Radiological Science and Technology

14 Agile Nations is an intergovernmental regulatory cooperation network aiming at the promotion ofcooperation in the implementation of innovative regulatory practices among the participating
governments.

7 Formulation of basic ideas regarding ensuring safety (Cabinet Office [relevant
ministries, agencies])
Since the performance and design required for equipment needed in the fusion
industry will change in accordance with the contents of safety regulations, it will benecessary to consider these safety regulations as early as possible to promote theparticipation of private companies.
To do so, the Cabinet Office will establish a task force comprising engineers,
regulatory specialists, and citizens to consider in cooperation with the relevant
ministries and agencies the basic concepts for ensuring safety while keeping in mind
the fostering of the fusion industry and the promoting of the development of the DEMO
reactor so as not to fall behind in the commercialization of fusion energy. In this study,
since fusion energy is different in principle from fission energy, discussions should
also include the frameworks for considering the regulations.
3-2 Developing the fusion technology
In order to build up a fusion technology portfolio based on strategic autonomy andindispensability in preparation for future uncertainty, Japan will support challenging
research that will open up future possibilities as well as promoting technologicaldevelopment that will be at the core of fusion energy through the ITER Project and BA
Activity and related domestic R&D.
 Strengthening original emerging technology support measures such as potentiallygame-changing miniaturization and high-performance technologies (Cabinet
Office, MEXT)
Other countries and private companies are developing advanced technologies andvarious reactor types, and these original and emerging technologies could have agame-changing impact. In fiscal 2023, Japan also will begin study of optimum typesof support for challenging research leading to innovation that will open up future
possibilities to widen the range of fusion technologies and hedge against future risks.
When supporting the research, the government will encourage collaboration between
research institutes and private companies in anticipation of commercialization and thefostering of common basic technologies.
 Acquiring key technologies through ITER Project/BA Activity (MEXT)
Since Japan is responsible for both key equipment in the ITER Project and making
important efforts for the development of the DEMO through its BA Activity, Japan willcontinue to promote both areas of activities to acquire the necessary key technologies
for realizing fusion energy.

8 Accelerating R&D in anticipation of the future development of the DEMO (MEXT)
The government will promote research and development for the DEMO reactor andintroducing mechanisms for promoting the greater participation of private companies
to accelerate the design of the future DEMO.
 Continuous promoting of academic research on fusion energy (MEXT)
Fusion energy requires a collection of diverse technologies and may hold thepossibility of an even wider range of technologies. Moreover, since innovation is
uncertain due to the existence of many unresolved problems, the government willcontinue to promote academic research, which undertakes intellectual and creative
activities in a wide range of fields.
 Advancing the Action Plan for the DEMO development with the incorporation of
new technologies developed by private companies including start-ups (MEXT)
Because of the rational basis for the Action Plan created based on the research resultsof the ITER Project and other endeavors, Japan should flexibly incorporate emerging
technologies and international cooperation that will contribute to the early realizationof fusion energy and its cost reduction.
Moreover, since it is unclear what the technical needs for the DEMO development arefor private companies, they would be venturing into participation without being able tomeasure any gaps in the technical levels of their own companies. In addition, because
the project involves long-term and difficult technology development, the government
will introduce the stage gate process for the creation of an appropriate technology roadmap for the DEMO development and appropriately manage its progress.
3-3 Framework for promoting the Fusion Energy Innovation strategy
The government will build a framework for promoting the strategy in order to drive theformulated national strategy forward through industry-academia-government
collaboration.
 With the Cabinet Office as the “control tower,” advancing the strategy together with
relevant ministries and agencies (Cabinet Office [relevant ministries, agencies])
Functioning as the government’s command center, the Cabinet Office (Council for
Science, Technology and Innovation) will advance the strategy towards the realizationof the innovation of the practical application of fusion energy. The strategy will be
regularly revised, employing EBPM, 15 to respond to changes in the market, theprogress of research, etc.

15 EBPM: Evidence-Based Policy Making

9 Building frameworks for the implementation of R&D by bringing together, centeringon the QST, academia and private companies for the development of the DEMOand for fostering private companies (MEXT)
Since building a framework system after the decision to transition to work on the
DEMO will create a lag in the progress toward commercialization, the government will
begin in fiscal 2023 discussions for the building of such a framework. However, atpresent when there is no leading body for the DEMO development, a framework willat first be established centering on the QST for promoting the participation of privatecompanies, and the framework will proceed according to the progress made. In thisway, private companies that can become the key players in the development ofcommercial reactors will be fostered.
 Establishing hubs for fusion technology innovation at QST to develop, relay,commercialize technologies developed in the ITER/BA Activity at QST; and for
foster human resources (MEXT)
To transfer technologies owned by QST to private companies as early as possible withthe aim of acquiring markets, in fiscal 2023 the government will launch a study aiming
at the early establishment of fusion technology hubs, which will be engaged ininitiatives from research and development to social implementation. Technicalcoordinators will be assigned to these hubs to connect with private companies, andthe joint use of facilities and equipment possessed by QST will be promoted for privatecompanies.
 Clarifying future career paths and systematically fostering human resources
engaged in fusion energy in industry, academia, and government (MEXT)
To strategically foster human resources engaged in fusion energy such as thedevelopment of the DEMO reactor, the government will promote the dispatch of young
human resources from academia and industry, including the nuclear energy field, tothe ITER Project, JT-60SA and other large-scale projects in Japan and abroad.
Consideration will be given to ensuring the career paths of those dispatched, including
seconding them to projects while allowing them to keep their positions at theorganizations or companies they belong to, so as to promote the continued mobility ofhuman resources active in posts related to fusion energy.
 Strengthening the fostering of human resources in Japanese universities andcarrying out efforts for acquiring excellent human resources from other fields andother countries (MEXT)
To increase the number of human resources engaged in the fusion energy field inJapan, where the falling birthrate has created a shortage of human resources, thegovernment will make efforts to secure human resources from other fields and othercountries by promoting the interdisciplinarization of fusion science and realizing thebroad circulation of “brains.” The government will promote study of the provision of
educational programs encouraging the participation of students and young
10researchers from numerous universities and human resources from abroad andenabling the study of fusion energy from a broad holistic view.
 Implementing outreach activities to deepen the understanding of citizens (MEXT)
The government will strengthen the functions of the outreach headquarters 16 andpromote activities for deepening citizens’ understanding of fusion energy to advancethe practical application of fusion energy while enhancing its social acceptability.
4.

Conclusion: Society realized by fusion energy

Fusion energy will not only solve the energy problems of Japan, which is poor in readyto-use energy resources, as well as its environmental problems, and become thefoundation for supporting Society 5.0, which is hailed as the model for the futuresociety Japan should aim for, but it will also enable the sustainable development of
humankind on a global scale. It is science and technology that Japan can harness togreatly contribute to the international society.
For example, if the uneven distribution of energy resources can be solved through therealization of fusion energy, wars fought in countries around the world over energy
resources will be eliminated, thus truly contributing to peace and stability in the world.
Moreover, by not only becoming a substitute for existing energy resources but also asource of power for space and deep-sea exploration since it can generate a hugeamount of energy from a small amount of fuel, fusion energy is expected to open up
unexplored frontiers for humankind. Beyond Japan’s national strategy, such a future
awaits.
Problems that still need to be solved for the realization of fusion energy remain, andsince we must respond to changing markets, advances in research and so on, Japan
will regularly update and revise its national Fusion Energy Innovation strategy.

16 The outreach headquarters (implementing bodies: MEXT, QST, National Institute for Fusion

Science, universities, etc.) was established in February 2019 with the aim of centralizing the outreachactivities conducted separately by universities and research institutions and conducting such activities
in a strategic and integrated way.

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