COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL EU CONTRIBUTION TO A REFORMED ITER PROJECT
Date: 2017-06-14
Institutions: Directorate-General for Energy, European Commission
Subjects: EAEC, European Joint Undertaking, Switzerland, investment, nuclear fusion, nuclear research, research project, scientific cooperation

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 14.6.2017  COM(2017) 319 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL EU CONTRIBUTION TO A REFORMED ITER PROJECT {SWD(2017) 232 final}  
 
 
EU CONTRIBUTION TO A REFORMED ITER PROJECT 

I. 

INTRODUCTION 

Fusion is expected to play an important role in Europe's future energy landscape as a virtually 
inexhaustible  climate  friendly  energy  source.  The  fusion  reaction  does  not  produce 
greenhouse gases or long-lasting radioactivity and the fuel is widely available and practically 
unlimited. By the end of this  century, as  fossil fuels  will be phasing out  of the energy mix, 
fusion could become a  suitable complement to  energy from renewables. This  is  particularly 
important  following  the  2015  Paris  Agreement  and  the  EU  commitment  to  lead  the  way  in 
decarbonising the economy and tackling global climate change in a cost-effective manner. 

Thanks to advances in fusion research ITER, which means 'the way' in Latin, aims to bring 
significantly  closer  the  prospect  of  meeting  a  large  share  of  our  electricity  needs  through 
fusion. Launched in 2005 and now involving seven global partners (Euratom1, United States, 
Russia,  Japan,  China,  South  Korea  and  India)  ITER  is  a  pioneering  project  to  build  and 
operate  an  experimental  facility  to  demonstrate  the  scientific  viability  of  fusion  as  a  future 
sustainable energy source. 

Europe has taken the lead in this project with a 45% stake of the construction costs of which 
80% is funded from the EU budget and 20% by France as the ITER host country2 (the other 
ITER Members share is around 9% each). This cost distribution will change in the operation 
phase, with Europe providing 34%. ITER's construction involves over 10 million components 
being  built  in  factories  around  the  world.  About  75  %  of  its  investment  is  spent  on  the 
creation of new knowledge and cutting-edge materials and technology. This offers European 
high-tech  industries  and  SMEs  a  valuable  opportunity  to  innovate  and  to  develop  'spin  off' 
products  for  exploitation  outside  fusion  (such as  the  broader  energy  sector,  aviation  and  hi-
tech instruments like the NMR - nuclear magnetic resonance - scanners). 

In July 2010, the Council of the EU mandated the European Commission to approve on behalf 
of  Euratom  the  current  ITER  Baseline3  which  was  based  on  the  assumption  that  the 
construction of ITER would be completed with so called First Plasma4 in 2020. The Council 
of the EU capped the budget for the construction phase at EUR 6.6 billion (2008 values) up to 
2020. These resources also  cover the administrative costs of the Euratom Joint  Undertaking 
'Fusion for Energy (F4E)'5.The costs for ITER have to be seen in the context of a significant 

1 The European Atomic Energy Community. 
2 The ITER Organization is set up by the ITER Agreement of 2006 and hosted in Saint-Paul-lès-Durance (France). Euratom, 
as 'Host Party' cannot withdraw from the project: article 26 of the Agreement allows an ITER Member other than Euratom 
to withdraw after 10 years from the entry into force of the Agreement (i.e. from October 2017). However, the Member shall 
continue providing its contribution for the construction phase but cannot participate in the experimental phase. 

3  A 'Baseline'  refers  to the inter-related elements of  scope  (specifications  of  the  machine  to  build), schedule  (timetable  for 

construction) and projected costs. 

4 First Plasma represents the stage in the construction of the fusion machine that will allow testing the essential components 
of the machine; under the terms of the ITER Agreement, it is the point where the construction phase is formally completed 
and the operation phase starts. 

5 Fusion for Energy is the European 'Domestic Agency' responsible for delivering the Euratom contribution to ITER. It was 
established as a Joint Undertaking by the Council Decision 2007/198/Euratom of 27 March 2007 and hosted in Barcelona 
(Spain).  Its  Members  are  the  Member  States  of  Euratom,  Euratom  and  Switzerland.  It  was  set  up  set  up  to  procure 

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energy  transformation  in  Europe  set  out  in  the  Energy  Union  strategy6  that  is  estimated  to 
require about EUR 200 billion annually in the next decade. 

Since the adoption of the 2010 baseline delays and cost overruns accumulated, mainly due to 
design  changes  and  manufacturing  challenges  owing  to  the  'first  of  a  kind'  nature  of  the 
project  but  also  to  weaknesses  in  its  management  and  governance.  These  delays  made 
impossible  the  completion  of  the  construction  within  the  expected  schedule.  In  particular, 
following  the  appointment  of  the  new  Director  General  of  the  ITER  Organization  in  2015, 
intensive effort made by Euratom in collaboration with the other ITER Members to improve 
the management of the project and to contain the schedule and cost slippages led to positive 
overall progress in the construction and manufacturing activities. 

Following  a  positive  review  by  independent  experts  the  ITER  Council  endorsed  ad 
referendum7  in  June  2016,  an  updated  schedule  and  associated  cost  estimates  for  the 
completion of the ITER construction to First Plasma estimated in December 2025. This is the 
earliest technically achievable date for the ITER construction8. This schedule does not include 
contingencies  and  therefore  assumes  that  all  major  risks  can  be  mitigated9.  The  detailed 
schedule  from  First  Plasma  in  December  2025  to  full  performance  operation,  using 
deuterium-tritium  fuel  (the  so-called  Deuterium-Tritium  phase)  estimated  in  2035,  was 
endorsed  by  the  ITER  Council  in  November  2016  (associated  costs  were  endorsed  ad 
referendum) as the basis for the new ITER Baseline.  

This updated schedule and associated cost estimate enable Euratom to stay within the current 
budget  cap  set  by  the  Council  of  the  EU  in  2010,  i.e.  EUR  6.6  billion  to  2020  (in  2008 
values),  thus  ensuring  that  all  necessary  contracts  can  continue  to  drive  progress  in  the 
construction  and  that  additional  delays  and  cost  overruns  can  be  minimised.  This 
Communication specifies the resources needed for the ITER construction after 2020 under the 
updated baseline. 

With this Communication the Commission seeks the support of the European Parliament and 
a  mandate  from  the  Council  of  the EU  for  the Commission  to  approve the  new  baseline  ad 
referendum on behalf of Euratom, at an ITER Council meeting at ministerial level that could 
take  place  in  2017.  Approval  will  still  be  ad  referendum  since  the  Euratom  contribution10 
from the EU budget is without prejudice to the proposals of the Commission, the outcome of 

Euratom's components to ITER and implement other activities related to ITER (mainly the activities with Japan under the 
Broader  Approach  Agreement  and  the  Test  Blanket  Module  programme)  and  DEMO  (the  project  after  ITER  that  will 
demonstrate the first commercial production of fusion electricity, being at the end point of the fusion roadmap and building 
on the results from the operation of the ITER). 
6 COM(2015) 80 final of 25.2.2015. 
7 Approval was ad referendum because still subject to a final decision by the Budgetary Authorities of the ITER Members. 
For  Europe,  this  implies  that  the  Euratom  contribution  from  the  EU  budget  is  without  prejudice  to  the  proposals  of  the 
Commission and the outcome of the negotiations on the Multiannual Financial Framework post 2020. 
8 This refers to a date before which achievement of First Plasma is considered not technically possible. 
9  As  a  date  for  First  Plasma  it  includes  no  contingency  provision  for  unscheduled  developments  and  risk-events  which 

however cannot be reasonably excluded, particularly in projects of comparable complexity. 

10 The Euratom contribution is defined as the joint contribution from the EU budget, France as Host State and the Members of 
Fusion for Energy. This contribution is paid to the budget of Fusion for Energy. The share of the Euratom contribution to 
ITER (through Fusion for Energy's budget) is funded 80% by the EU budget and ~20% by France. The overall budget of 
Fusion for Energy also benefits from an additional ~2% paid by its Members. 

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the  negotiations  on  the  withdrawal  of  the  United  Kingdom  from  Euratom  (Brexit)  and  the 
Multiannual Financial Framework post 2020. 

Brexit does not affect the overall legal commitment of Euratom to ITER, which is governed 
by the international ITER Agreement. However Brexit will have an impact on the decisions 
taken for the next Multiannual Financial Framework, and consequently could have an indirect 
impact on the available Euratom financing to ITER11. 

It is in this context that Euratom's approval ad referendum of the new baseline will provide 
needed  stability  to  the  project,  the  companies  and  research  centres  involved  in  the  project, 
allowing current contracts to be duly completed and necessary new ones to be launched in the 
coming years. It will also allow the continuation of cooperation with ITER Members and their 
Domestic Agencies under the terms of the ITER Agreement.  

II. 

ITER, THE PATH TO A FUTURE LOW CARBON ENERGY SOURCE, BOOSTING EU 
TECHNOLOGICAL DEVELOPMENT AND GROWTH 

Fusion's future as a viable energy source depends on the successful construction and operation 
of  ITER.  Already  in  the  present  construction  phase  ITER  is  having  a  positive  impact  on 
European  industries  and  SMEs  involved  in  the  manufacture  of  thousands  of  first-of-a-kind 
technological  components  required  for  this  complex  endeavour.  An  example  of  this  is  the 
successful fabrication by a European consortium of companies of the superconductors and the 
winding packs for the ITER Toroidal Field Coils, which is a major technological advance as 
winding packs of this size have never been manufactured before. 

II.1 

ITER, a positive investment for the EU 

The  Euratom  investment  in  the  construction  of  ITER  is  bringing  important  benefits  to 
European  industry  and  research  community.  Between  January  2008  (the  start  of  ITER 
activities) and December 2016, Fusion for Energy has awarded 839 contracts and grants for a 
value  of  approximately  EUR  3.8  billion  spread  all  over  Europe.  Some  300  companies 
including SMEs from about 20 different EU Member States and Switzerland, as well as some 
60 research organisations, engaged in cutting-edge R&D, technology, design and manufacture 
work  for  ITER  components  have  benefited  from  this  investment  on  ITER  activities. 
Furthermore,  the  ITER  Organization  as  well  as  the  Domestic  Agencies12  and  industries  of 
other  ITER  Members  have  also  signed  contracts  with  European  industry  to  support  the 
manufacture of their own components for ITER. 

This investment is already visible in the significant progress on the 42-hectare ITER worksite. 
Among the planned 39 buildings, the Tokamak Complex is rising rapidly with the completion 

11.  The  United  Kingdom  is  an  active  actor  in  fusion  research  and  following  the  withdrawal  from  Euratom,  the  United 
Kingdom as a non-Euratom state may seek to be associated to the Euratom ITER activities through Fusion for Energy, 
similarly to Switzerland. Whether this will be acceptable and under which conditions will be a matter for consideration of 
the  27  Euratom  Member  States  and  negotiation  between  Euratom  and  the  United  Kingdom.  Alternatively,  the  United 
Kingdom may seek to participate directly in the ITER project, subject to the unanimous approval of the ITER Members, 
including Euratom. This latter scenario would require a change in the ITER Agreement. 

12 Each Member has created a Domestic Agency to fulfil its procurement responsibilities to ITER. These agencies employ 
their own staff, have their own budget, and contract directly with industry. Fusion for Energy is the EU Domestic Agency. 

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of two basement levels and is now reaching above ground level. Close by, the 60 metre tall 
Assembly Hall, the Cleaning Facility and the Site Services Building stand complete. There is 
substantial progress with several other buildings on-site such as the cryoplant and the cooling 
towers  and  work  has  started  in  the  last  18  months  on  most  of  the  remaining  buildings.  Six 
electrical  transformers  (provided  by  the  United  States  and  China)  are now  installed.  All  the 
base  pieces  of  the  cryostat  have  been  delivered  by  India  and  are  being  welded.  Fusion  for 
Energy  is  ready  to  start  the  manufacture  of  four  giant  poloidal  ring-shaped  coils  (with 
diameters of 17 and 25 metres) inside a dedicated 250 metre long building. 

As the project evolves new procurements and grants will be awarded in the coming years, not 
only  by  Fusion  for  Energy  for  the  Euratom  in-kind  contribution13  but  increasingly  by  the 
ITER Organization  for the assembly and tooling work needed to  complete the construction. 
Overall EUR 1.8 billion is expected to be contracted out by the ITER Organization from now 
to  2025  particularly  in  areas  like  diagnostics,  remote  handling  and  heating  systems  high 
technology  solutions,  opening  up  new  opportunities  for  industries  and  SMEs  in  European 
regions not so far featuring prominently amongst the beneficiaries. 

II.2 

ITER, anchored in the European fusion roadmap and open to the world 

Achieving a future fusion power plant requires sustained scientific, managerial and financial 
commitment  on  a  scale  that  no  single  country  can  provide.  This  is  the  reason  why  fusion 
activities  are  closely  integrated  at  European  level  and  also  why  seven  major  partners  are 
supporting ITER construction at international level. 

The  successful  construction  and  operation  of  ITER  is  on  the  critical  path  of  the  European 
fusion roadmap, which represents a comprehensive goal-oriented path to fusion electricity and 
has been endorsed by all fusion research stakeholders in Europe14. The new baseline contains 
a realistic schedule to achieve the goal of ITER and is essential input to the roadmap. In order 
to  limit  the  impact  of  the  new  ITER  schedule  on  the  fusion  roadmap,  in  particular  the 
construction  of  the  fusion  electricity  demonstration  facility  (DEMO),  crucial  long-lead  time 
research such as the development of new materials needed for DEMO must start immediately. 
This will need the construction of suitable facilities,  such as the planned facility to irradiate 
and test materials needed for DEMO (DONES - DEMO-Oriented Neutron Source). 

Given the delay in achieving First Plasma the fusion research community has an opportunity 
to improve coordination and scientific exploitation of existing tokamaks15 around the world, 
such as JET (EU), K-STAR (Korea), EAST (China), and DIII-D (United States), in order to 
better  prepare  for  ITER  operation.  This  is  particularly  the  case  for  the  JT-60SA  Tokamak 
(Japan) being constructed on budget by Euratom and Japan as part of the Broader Approach 
activities and which will become operational by 202016. 

13 'In kind contribution' refers to the delivery by the ITER Members (through their Domestic Agencies) of all the components 

necessary to build ITER, including the buildings. 

14 'Fusion electricity, a roadmap to the realisation of fusion energy', 2012. 
15 From the Russian 'токама́к', is a device that uses a powerful magnetic field to confine plasma in the shape of a torus. 
16 Five Members of Fusion for Energy are currently voluntary contributing to the Broader Approach activities: Spain, France, 

Germany, Italy and Belgium. 

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At present Switzerland is the only non-Euratom country associated to the Euratom activities 
for ITER through Fusion for Energy. Switzerland is associated to fusion activities since 1978, 
allowing  Switzerland  to  benefit  from  contracts  and  grants  with  Fusion  for  Energy  and  the 
ITER Organization and to be associated to the Euratom fusion research programme.  

As  the  project  evolves  towards  its  operation  phase  new  opportunities  could  be  open  to 
countries not currently involved in ITER, through cooperation agreements (e.g. Australia) or 
association to ITER activities through Euratom as in the case of Switzerland. Following the 
signature of the Joint Comprehensive Plan of Action in July 2015 the ITER Organization is 
exploring the possibility to cooperate with Iran on fusion research. 

III. 

DELIVERING A CONFIDENT PATH TOWARDS ITER CONSTRUCTION 

Soon  after  the  adoption  of  the  2010  baseline  the  ITER  Members  came  to  realise  that,  in 
addition  to  the  immaturity  of  the  design  and  the  manufacturing  challenges,  management 
deficiencies  and  a  lack  of  cooperation  between  the  Domestic  Agencies  and  the  ITER 
Organization were hindering the implementation of the project. Both the 2010 schedule and 
cost estimate were thus perceived to be unreliable. 

The  2013  independent  management  assessment  of  the  ITER  Organization  recommended 
changes  in  the  project  management  and  the  development  of  a  more  realistic  schedule  and 
resource plan. In March 2015 decisions were adopted by the ITER Council to restructure the 
management and on an Action Plan under the leadership of a new Director-General. This Plan 
envisaged  a  complete  re-organisation  of  the  ITER  Organization,  close  cooperation  with  the 
Domestic  Agencies17,  freezing  designs  to  allow  the  construction  of  buildings  and  other 
components  and  the  establishment  of  a  Reserve  Fund.  This  Fund  was  created  to  cover  the 
additional  cost  to  the  Domestic  Agencies  caused  by  changes  initiated  by  the  ITER 
Organization  to  the  design  of  components.  The  provisions  for  its  use  were  adopted  by  the 
ITER  Council  in  2015  and  its  implementation  is  under  the  direct  responsibility  of  the 
Director-General  of  the  ITER  Organization.  It  is  funded  from  the  cash  contribution  of  the 
ITER  Members  according  to  their  share  in  the  construction  phase  (45%  for  Euratom). 
Euratom has ensured that its contribution to the Reserve Fund is within its capped budget for 
ITER  up  to  2020.  From  2021  onwards  the  ITER  Organization  has  estimated  a  total 
contribution to the Reserve Fund which Euratom takes into account in its estimate for the in-
cash  contribution  (see  the  Commission  Staff  Working  Document  accompanying  this 
Communication for details). The Fund introduces an incentive for the ITER Organization to 
minimize changes as much as possible, and therefore acts as a risk mitigation measure. 

The  Action  Plan  is  also  focussed  on  cost  control  and  the  establishment  of  a  new  reliable 
schedule and associated cost estimates that should lead to a new baseline. In about one year 
and a half the ITER Organization has already completed about 60% of this action plan and is 
making good progress in the remainder. 

17 In particular, 'Joint ITER Organization - Domestic Agencies project teams' were set up in key project areas, supervised by a 
joint project management body (Executive Project Board), allowing early identification of problems and their resolution. 

6 

 
 
                                                            
A complementary Action Plan was adopted by the Governing Board of Fusion for Energy in 
2015 that led to the creation of a Project Management Department to reinforce planning and 
control  processes,  the  redeployment  of  staff  to  high  priority  areas  and  the  strengthening  of 
project  control  and  cost  containment  measures.  To  date  80%  of  the  actions  have  been 
implemented and good progress is being made in the implementation of the remainder. 

III.1  Long term schedule of the project following a staged approach 

Following  a  positive  review  by  the  independent  ITER  Council  Review  Group18,  the  ITER 
Organization presented to the ITER Council in June 2016 a new schedule and associated cost 
estimates for the completion of the construction of the fusion machine until First Plasma. The 
earliest  technically  achievable  First  Plasma  date  is  currently  estimated  to  be  in  December 
2025, but this does not include contingencies and therefore depends upon all major risks being 
mitigated by the ITER Organization and the Domestic Agencies. The detailed schedule for the 
period  from  First  Plasma  in  December  2025  to  a  full  performance  operation  (so  called 
Deuterium-Tritium  phase)  estimated  in  2035  was  presented  by  the  ITER  Organization  and 
agreed by the ITER Council in November 2016 as the basis of the revised ITER baseline. 

The new schedule follows a so-called staged approach which focuses first on the construction 
of  the  components  which  are  essential  to  achieving  First  Plasma  in  2025,  followed  by 
successive series of installation and testing phases before starting the full performance phase 
(Deuterium-Tritium operation) in 2035. First Plasma construction activities therefore are to be 
followed  by  limited  additional  Final  Installation  activities  (also  covered  by  the  construction 
budget)  in  the  operation  phase  from  January  2026  until  the  start  of  Deuterium-Tritium 
Operation in 2035. This schedule offers the possibility to better manage the project risks by 
tackling progressively the technical challenges and ensuring that the ITER Organization and 
Domestic  Agencies  focus  on  what  is  most  important  to  reach  First  Plasma.  It  also  provides 
flexibility  to  accommodate  the  placement  of  contracts  and  allows  for  a  longer  research 
programme between First Plasma (end of 2025) and the Deuterium Tritium phase (2035). 

III.2  Resources to sustain the path to ensure the full implementation of ITER 

The revision of the project cost for each ITER Member, including Euratom (resources from 
the EU budget and France and Fusion for Energy Members) has essentially two components: 
(a) the revision of each Member's cash contributions to the ITER Organization for the latter's 
share  of  construction,  assembly  and  operations  and  (b)  the revision  of  the  resources  needed 
for the procurement of the respective in-kind contributions that each Member is committed to 
deliver  to  the  project  as  well  as  the  administrative  costs  for  each  Domestic  Agency.  In 
addition  to  the  EUR  6.6  billion  (in  2008  values)  budgeted  for  the  construction  up  to  2020 
under  the  previous  baseline,  the  resources  needed  by  Euratom  to  enable  the  successful 
completion  of  the  facility  and  the  start  of  the  performance  operation  phase  have  been 
estimated  in  this  section  on  the  basis  of:  (1)  the  cash  request  presented  by  the  ITER 

18 ITER Council Working Group on Independent Review of the Updated Long-Term Schedule and Human Resources (or in 

brief ITER Council Review Group). 

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Organization to the ITER Council of November 201619 and (2) Fusion for Energy's estimates 
presented at its Governing Board of December 201620  (all quoted values are in  2008 unless 
explicitly  stated  otherwise;  while  the  enclosed  tables  report  the  estimates  in  both  2008  and 
current values) as well as (3) assumed full compliance with the legal commitments under the 
ITER  Agreement  by  which  the  Euratom  contribution  is  not  directly  affected  by  Brexit  (see 
also page 3). It is also assumed that France as a host country will continue to provide 20% of 
the Euratom contribution. 

Euratom in-cash contributions under the new schedule 

The  additional21  amount  of  in-cash  contributions  to  the  ITER  Organization  by  Euratom 
(through  the  budget  of  Fusion  for  Energy)  for  the  construction  phase  up  to  First  Plasma  is 
now foreseen at about EUR 1.1 billion for the period 2021-2025 and ca. EUR 0.6 billion to 
cover  Final  Installation  activities  during  the  period  2026-2035  (also  from  the  construction 
budget). 

Euratom in-kind contributions under the new schedule 

Furthermore,  based  on  cost  estimates  established  by  Fusion  for  Energy  on  the  basis  of  the 
staged approach, an additional21EUR 2.1 billion will be required during the period 2021-2025 
to  cover  the  cost  of  Euratom's  in-kind  contributions  necessary  to  achieve  First  Plasma, 
including  components  on the critical  path, such as  the vacuum vessel and buildings and the 
cost of the initial stages of design and construction activities for components under Euratom 
responsibility required for the subsequent assembly phases. 

It is important to underline that under the staged approach construction activities to achieve 
First Plasma in December 2025 will be followed by further development and construction of 
components  for  the  ITER  machine  during  the  subsequent  Final  Installation  activities.  The 
additional21 resources required to complete the remaining Euratom in-kind components after 
2025 and until 2035 (start date of full performance operation) will be of the order of EUR 0.9 
billion, without taking into account the possible revenue from the Reserve Fund of the ITER 
Organization. 

Combined cost of Euratom contribution to the ITER project 

While  the  object  of  this  Communication  is  primarily  to  give  detailed  information  on  the 
resources estimates for the construction phase of the project until First Plasma in 2025, Tables 
1  and  2  below  show  the  total  estimated  Euratom  contribution  to  the  revised  baseline  of  the 
project based on the staged approach (billion EUR in 2008 and current value, respectively). 

19 Proposal for the Updated Project Plan and Resource Estimates (PPRE), ITER_D_U29DBA v1.1. 
20 Implications of the ITER updated Schedule and Resources Estimates on Fusion for Energy, F4E(16)-GB36-12.1. 
21 In addition to the costs foreseen for construction under the previous baseline. 

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Euratom contribution 

2008 value 

Up to the end of the 
current MFF period 

To FP 

From FP to DT 

2007-2013 

2014-2020 

2021-2025 

2026-2027 

2028-2035 

Total22 after 
2020 

F4E total cash to IO 

0.9 

1.1 

0.5 

1.1 

2.7 

Construction budget 

Operations budget 

0.9 

0.0 

1.1 

0.0 

0.3 

0.2 

0.3 

0.8 

1.7 

1.0 

F4E in kind contribution 

3.2 

F4E administration 

F4E other activities 

EC project administr. 

Totals22 

3.2 

1.9 

0.3 

0.1 

0.06 

3.3 

2.1 

0.3 

0.4 

0.04 

3.9 

0.5 

0.1 

0.1 

0.02 

1.2 

0.4 

0.4 

0.04 

0.07 

2.0 

3.0 

0.8 

0.5 

0.13 

7.1 

Table 1. Summary table of Euratom contribution in 2008 value. All numbers are expressed in billion EUR, the 
First Plasma (FP) date is 2025 and the start of the performance operation (DT) is in 2035. 
Total cash to IO is split as follows: 

Construction budget (45.46% of share) includes the cost of Final Installation activities after First Plasma 
Operations  budget  (34  %  of  share)  includes:  running  costs  of  the  machine,  provision  for  operational 
upgrades and spares, decommissioning and deactivation costs 

F4E in-kind include the costs of all contracts to provide Euratom's in-kind contribution and takes into account 
an estimated return revenue from the Reserve Fund. 
F4E admin provides an upper limit to F4E administrative costs. 
Other activities include: TBM, DEMO, DONES, JT60-SA operation, cash to Japan and other minor horizontal 
activities. 
EC  project  administr.  is  the  average  Commission  administration  costs  of  the  project.  Figures  after  2020  are 
based on the average budget for the period 2014-2020 (EUR 0.67 million current value). 

Combining  the  total  estimated  cash  and  in-kind  contribution  to  the  ITER  Organization,  the 
total additional Euratom contribution (through the Fusion for Energy budget) from 2021 till 
the end of 2035 is now estimated at about EUR 5.7 billion (EUR 8.4 billion in current values). 
Adding  the  operational  cost  of  Fusion  for  Energy's  administration  (up  to  EUR  0.8  billion), 
Fusion  for  Energy's  other  activities  such  as  Test  Blanket  Module  and  Broader  Approach 
(EUR 0.5 billion) and the European Commission average administration costs of the project 
(EUR 0.13 billion), the total Euratom resources for the same period are estimated at EUR 7.1 
billion (EUR 10.4 billion in current values). To be noted that the ITER Council of November 
2016 requested the ITER Organization to make further cost savings. 

The figures given above represent the overall Euratom contribution to ITER construction23. A 
complete  overview  of  the  estimated  distribution  of  the  European  resources  needed  for  the 

22 Amounts rounded off to one decimal 
23 If the United Kingdom seeks association to the Euratom ITER activities through Fusion for Energy, as mentioned under 
point II.2, the discussions between Euratom and the United Kingdom would need to cover the level and modalities of the 
contribution of the United Kingdom and the terms and conditions upon which funding would be made available to United 
Kingdom based undertakings. 

9 

 
 
 
 
 
 
                                                            
 
ITER  project  is  given in  table  4  of  the  Staff  Working  Document.  This  table  also  shows  the 
estimate of the European Commission average administration costs of the project, Fusion for 
Energy's administrative costs and the costs of ITER-related activities of Fusion for Energy. 

Euratom contribution 

current value 

Up to the end of the 
current MFF period 

To FP 

From FP to DT 

2007-2013 

2014-2020 

2021-2025 

2026-2027 

2028-2035 

Total22 after 
2020 

F4E total cash to IO 

1.1 

1.5 

0.7 

1.6 

3.8 

construction 

operations 

1.1 

0.0 

1.4 

0.1 

0.4 

0.3 

0.4 

1.2 

2.2 

1.6 

F4E in kind contribution 

3.5 

F4E administration 

F4E other activities 

EC project administr. 

Totals22 

3.5 

Table 2. As Table 1, but in current values. 

2.5 

0.4 

0.1 

0.07 

4.2 

3.1 

0.3 

0.5 

0.05 

5.5 

0.8 

0.1 

0.2 

0.02 

1.8 

0.7 

0.6 

0.1 

0.08 

3.1 

4.6 

1.0 

0.8 

0.15 

10.4 

The estimated needs for Fusion for Energy for the construction phase of the project from 2021 
until First Plasma in 2025 will therefore be about EUR 3.9 billion (2008 value). 

III.3  Solid  basis  to  succeed  in  constructing  ITER,  supported  by  independent 

reviews and continued commitment of the ITER Members 

Important  recent  developments  provide  a  good  basis  for  the  ITER  project  to  move  forward 
towards success, although risks still exists. The final design for components needed for First 
Plasma  has  reached  89%  while  that  for  non-First  Plasma  components  stands  at  71%, 
according  to  information  provided  by  the  ITER  Organization.  The  maturity  of  the  design 
gives more reliability to the new schedule and associated resource estimates which have been 
prepared  in  close  collaboration  between  the  Domestic  Agencies  and  the  ITER  Organization 
and take into account therefore the technical capacities and financial constraints of the ITER 
Members  and  Domestic  Agencies.  A  new  level  of  cooperation  between  the  ITER 
Organization and the Domestic Agencies is supported by newly introduced tools24 designed to 
better cope with design changes that could otherwise lead to delays or extra expenditure. 

A  positive  appreciation  of  the  progress  made  both  by  the  new  ITER  management  and  the 
project  itself  has  been  confirmed  by  the  ITER  Council  Review  Group  that  concluded  in  its 
report that the revision of the schedule was beneficial to the project and was conducted in a 
professional and robust manner. In  addition the 2015 Management Assessment of the ITER 

24 In particular the Reserve Fund to address cost of changes initiated by the ITER Organization to the design of a component; 
and also the creation of joint ITER Organization-Domestic Agencies project teams in key areas of the project, supervised 
by a joint project management body (Executive Project Board), to identify problems and propose effective solutions. 

10 

 
 
 
 
 
                                                            
Organization  also  acknowledged  effective  efforts  to  make  the  project  advance  recognising 
management improvements, including in the decision making processes, as well as improved 
cooperation  and  integration  of  activities  between  the  ITER  Organization  and  the  Domestic 
Agencies. Overall the assessment affirmed that these changes were leading to an acceleration 
in the progress of the project. 

In parallel changes at European level have intensified in early 2016 with the appointment of a 
new Director in Fusion for Energy with industrial expertise that has aligned the objectives of 
the Joint Undertaking with those of the ITER Organization, giving rigorous attention to risk 
management and cost containment measures. Further changes are underway to better deliver 
the Euratom contribution to ITER on schedule and on budget and to identify potential risks 
and  mitigation  measures.  Changes  introduced  to  the  operation  and  practices  of  Fusion  for 
Energy are in line with the recommendations from the European Court of Auditors (ECA) as 
well as the Commission's  own Internal Audit Service (IAS). To date Fusion for Energy has 
dealt  with  83%  of  the  recommendations  of  the  ECA  and  the  IAS,  which  is  now  Fusion  for 
Energy’s  internal  auditor  in  compliance  with  a  recommendation  of  the  ECA.  The 
consolidation and  improvement of the financial performance of Fusion  for Energy  has  been 
confirmed  in  annual  discharge  procedures  by  the  European  Parliament,  based  on  annual 
review  of  the  accounts  by  the  ECA  that  has  consistently  confirmed  the  regularity  and 
conformity of Fusion for Energy's accounts. 

In  June  2016  the  Governing  Board  of  Fusion  for  Energy  launched  a  high-level  assessment 
exercise on the planning for the delivery of the components under Euratom responsibility and 
the associated resources. The results of this review, presented in December 2016, confirmed 
the  capacity  of  Fusion  for  Energy  to  deliver  the  Euratom  contribution  to  the  new  ITER 
schedule  on  time  and  coherent  with  the  staged  approach.  This  review  also  underlined  the 
capacity  of  the  Joint  Undertaking  to  deliver  the  components  required  within  the  current 
available budget until 2020 and the cost projections made thereafter. Nevertheless design and 
manufacturing challenges, affecting in particular the critical path, continue to exist and could 
have further impact on the revised schedule. 

As regards the ITER Members, following the completion of the new schedule and associated 
resource  estimates,  they  are  currently  engaged  in  securing  the  necessary  resources  for  the 
project.  Domestic  procedures  have  been  launched  in  China,  Korea,  Japan  and  Russia.  The 
underlying assumption in the political decision-making process of all ITER Members is that 
Europe will maintain its leadership and support for the ITER project. 

The  United  States  Department  of  Energy  in  May  2016  published  a  report  on  ITER  for 
Congress  underlining  the  positive  achievements  in  the  project  while  advocating  to  continue 
the  reforms  underway.  The  report  acknowledged  December  2025  as  the  earliest  technically 
achievable date for First Plasma ('early finish date'), while noting that further risk of schedule 
slippages could still materialise. A subsequent detailed review of the project to First Plasma 
carried out by the United States Department of Energy in January 2017 further confirmed that 
the  project  schedule  to  First  Plasma  should  have  a  contingency  of  24  months.  The  United 
States  nevertheless  agreed to  continued participation  in the project, with a further review in 
2019. 

11 

 
 
The reorientation of the project has been crucial in sustaining the support and commitment of 
all ITER Members to the project. 

IV.  MONITORING AND TACKLING THE INHERENT RISKS OF ITER 

ITER  as  a  first  of  a  kind  large-scale  international  project  at  the  technological  frontier  of 
knowledge is exposed to inherent risks as regards long term schedule and cost predictability, 
but also in terms of stability of management and governance. 

The  new  schedule  and  associated  cost  estimates,  together  with  the  changes  brought  to 
management  and  governance,  now  give  more  confidence  on  the  successful  completion  of 
ITER construction. Important challenges remain, in particular the completion of the buildings 
and vacuum vessel, both Euratom contributions which are on the critical path of the project. 
Strong risk management is therefore key for the project and notably for the success of the new 
baseline in particular to address remaining risks in terms both of schedule and resources. In 
particular,  independent  reviewers  of  both  the  ITER  Organization  and  Fusion  for  Energy 
indicate  that  the  completion  of  First  Plasma  by  December  2025  is  the  earliest  technically 
achievable  date  and  includes  no  contingency.  To  ensure  schedule  reliability,  a  reasonable 
contingency should be included. In particular, the budget estimate of Fusion for Energy until 
First  Plasma  was  considered  reasonable,  with  a  possible  uncertainty  of  10%  due  to  overall 
project delays. 

IV.1  Measures to address risks at overall project level 

The  new  management  of  the  ITER  Organization  has  embraced  risk  management  principles 
which  are  applied  to  other  large engineering  projects,  in  particular  to meet  the  First  Plasma 
date  in  2025.  A  quantitative  approach  to  risk  management  is  now  been  taken  regarding  the 
probability  of  risk  occurrence,  its  impact  (in  months  and  Euros)  and  defining  mitigation 
actions. All main risk classes as well as potential new risks are addressed. A Project Risk and 
Opportunity Management Committee is in place and the Project Risk Register is being further 
improved and is now accessible to all staff of the ITER Organization and Domestic Agencies. 
Further  progress  is  however  needed  to  freeze  the  interfaces  of  components  as  this  has  a 
critical role in reducing risks of schedule slippage and cost increase. 

An important element of this system is the set of milestones, introduced for the first time by 
the ITER Council in November 2015 and further developed in June 2016, against which the 
progress  of  the  project and  its  adherence  to  the  schedule  can  be  better  monitored. This  will 
allow deviations in the execution of project to be identified and addressed earlier. The ITER 
Council  has  also  decided  to  carry  out  regular  six-monthly  in  depth  risk  reviews  focused  on 
critical areas of the project, starting with risk management in 2017. These reviews are another 
way to identify possible risks and to address them before they have a negative impact. 

At  the  same  time  further  improvements  need  to  be  made  in  the  governance  of  the  ITER 
Organization  for  effective  oversight  of  the  project.  In  this  respect,  in  November  2016  the 
ITER Council agreed to reduce the number of sub-committees, rationalise their function and 
eliminate  overlaps.  In  2017  it  will  analyse  other  simplification  opportunities  to  focus 
governance on delivery and strategic issues. 

12 

 
 
IV.2  Measures to address risks in the European participation 

In  parallel  to  a  comprehensive  strategy  to  make  the  ITER  project  a  success  Euratom,  its 
Member  States  and  Switzerland,  as  members  of  Fusion  for  Energy,  have  to  continue  with 
substantial efforts to improve the performance of the Joint Undertaking. 

A culture change is underway in Fusion for Energy. It focuses on accountability for cost, the 
introduction  of  reporting  systems  to  better  address  potential  risks  and  the  introduction  of 
milestones  against  which  the  execution  of  the  Euratom  contribution  is  better  monitored. 
Regarding  cost  risks,  in  spring  2015  Fusion  for  Energy  initiated  a  major  exercise  for  the 
revision of its own cost estimate at completion based on information from individual contracts 
and packages of work. Following this exercise a cost risk register has been adopted. The new 
management of Fusion for Energy is focused on stemming cost increases and schedule delays 
in the two most critical areas of the Euratom contribution (buildings and vacuum vessel) and 
is reinforcing project control and updating cost estimated for completion of major systems on 
a  monthly  basis.  The  Commission  will  require  Fusion  for  Energy  to  seek  further  cost 
containment measures, including a comprehensive strategy for dealing with cost claims from 
contractors. 

Based on the lessons already learned and the results of the 2017 mid-term review of Fusion 
for Energy the Commission will continue to reinforce its oversight of the Joint Undertaking, 
which  will  be  reflected  through  a  new  Administrative  Agreement  to  anchor  not  only  the 
changes stemming from the new Financial Regulation that entered into force in 2016 but also 
effective reporting and monitoring. 

V. 

ITER: THE WAY FORWARD 

Euratom has shown strong leadership to address the challenges of the ITER project and to put 
it  back  on  track.  The  radical  measures  adopted  in  particular  since  2015  are  now  yielding 
encouraging  results.  Progress  is  visible  on  the  ITER  site,  with  the  construction  of  many 
buildings advancing well, mainly under European responsibility.  

This  progress,  corroborated  by  independent  experts  and  recognised  by  the  ITER  Members 
themselves, confirms that the actions taken were necessary to reorient the project. 

Following  the  2016  ITER  Councils  the  ITER  Organization  is  set  to  follow  the  staged 
approach with the aim to minimise the cash contributions needed from the ITER Members. It 
has an updated baseline for the project covering the new schedule, estimated cost and the staff 
resources for the period up to December 2025 (earliest achievable date for First Plasma) and 
an  indicative  schedule  and  cost  baseline  for  the  period  from  2026  to  Deuterium  Tritium 
operation  in  2035.  While  both  Euratom  and  Fusion  for  Energy  remain  fully  committed  to 
adhering to the revised schedule and thus achieving the First Plasma Date of December 2025, 
experience  from  the  construction  of  similar  large  scale  one-of-a-kind  facilities  shows  that 
achieving First Plasma should be subject to a contingency. Based on the input of independent 
reviews made in 2016, and in line with existing experience with large international projects of 
similar  complexity  and  maturity,  the  Commission  estimates  that  a  contingency  of  up  to  24 
months in terms of schedule and 10-20% in terms budget would be appropriate. 

13 

 
 
It is now time for the ITER Members to launch their internal procedures for the approval of 
the budgetary requirements. Several ITER Members have already indicated the availability of 
funding  for  their  contributions  but  are  not  be  likely  to  make  formal  commitments  before 
Euratom's position is clarified. For Europe the new schedule and its associated costs, backed 
up by the improvements in the project, provide the necessary grounds for the Commission to 
request the support of the European Parliament and a mandate from the Council of the EU to 
approve  the  new  ITER  Baseline  ad  referendum  on  behalf  of  Euratom,  most  likely  at  a 
Ministerial  level  ITER  Council  meeting  in  2017.  The  Euratom  approval  needs  to  be  ad 
referendum since the final Euratom contribution from the EU budget to the ITER project and 
the  other  costs  related  to  the  activities  of  Fusion  for  Energy  and  to  the  management  of  the 
ITER project will be subject to the Commission's proposals and outcome of negotiations on 
Brexit and the next Multiannual Financial Framework post 2020. 

This  mandate  will  not  only  ensure  the  Euratom  support  to  the  new  schedule  but  will  in 
addition demonstrate the continued commitment of Europe to ITER and reinforce European 
leadership in the project. Our international partners in ITER expect that Europe, as ITER host, 
continues to be the driving-force in keeping the project on track. 

14