Australians Step into the Fusion Energy Race
Australia is now taking a more active role in the global pursuit of nuclear fusion — the long-sought “holy grail” of clean energy that fuses hydrogen atoms to release vast amounts of energy, much like the process powering the sun. Unlike traditional nuclear fission, fusion promises far fewer waste and safety issues.
This push into fusion is partly driven by new challenges: electricity demand from AI data centres is projected to grow by 25% annually over the next decade, while other sources of demand (transport electrification, appliance use) also rise.
Australia is now taking a more active role in the global pursuit of nuclear fusion — the long-sought “holy grail” of clean energy that fuses hydrogen atoms to release vast amounts of energy, much like the process powering the sun. Unlike traditional nuclear fission, fusion promises far fewer waste and safety issues.
This push into fusion is partly driven by new challenges: electricity demand from AI data centres is projected to grow by 25% annually over the next decade, while other sources of demand (transport electrification, appliance use) also rise.
On the supply side, Australia has made significant strides:
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HB11 Energy (an Australian company) is developing laser-based fusion technologies and is building a prototype facility in Adelaide.
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While traditional nuclear power remains politically restricted in Australia, fusion is being viewed as a potentially permissible path forward.
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However, there are major challenges:
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Fusion technology is still experimental and requires extreme conditions (e.g. temperatures of 100 million °C)
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The need for consistent power output (baseload) means fusion must compete with grid storage, pumped hydro, and existing battery solutions
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Without a strong national strategy, Australia risks falling behind in fusion innovation despite its scientific capability
Australia Joins the Global Fusion Energy Race
Across the world, nuclear fusion is gaining traction as the ultimate clean energy source — merging hydrogen atoms under extreme conditions to produce vast energy with minimal waste. For years, fusion remained theoretical. But now, Australians are stepping up in the race.
Why Are We Paying Attention Now?
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Rising electricity demand: Data centres built on AI and machine learning are pushing electricity use into uncharted territory — AEMO projects a 25% annual growth in AI demand alone.
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Renewables alone can’t cover everything: While solar and wind are growing rapidly (nearly 40% of Australian households now have rooftop solar), these sources are intermittent and need firming technologies to supply round-the-clock power.
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Australia’s own ambitions: HB11 Energy is leading fusion efforts locally — developing laser fusion and constructing a prototype in Adelaide.
What Is Fusion, and Why It Matters
- Fusion vs Fission:
-Fission splits heavy atoms (like uranium) to release energy; fusion fuses light atoms (hydrogen isotopes) to produce energy.
-Fusion generates no long-lived radioactive waste and carries minimal safety risk
-Fuel sources like hydrogen and boron are abundant and widely available
- A successful fusion reactor would provide baseload, zero-emissions energy, addressing the gap between intermittent renewables and constant demand.
Challenges Ahead
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Technical complexity: Achieving sustained fusion requires extreme conditions and precise control over plasma behavior
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Scale and cost: Experimental successes are promising, but scaling to commercial plants is expensive and still years away
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Regulatory & policy uncertainty: Australia currently bans traditional nuclear power, and the legal status of fusion is unclear
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Global competition: Other nations are pouring billions into fusion research — China, the U.S., and Europe are aggressively pushing forward
What It Means for South Australia & Clean Energy
For states like South Australia — already leaders in rooftop solar, wind, and battery storage — fusion offers another future lever:
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It could serve as a firming source, complementing solar and wind
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Local scientists and companies (like HB11) could help Australia play a major role in the emerging fusion supply chain
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Fusion may not be here tomorrow — but planning for it now means Australia can be prepared if it arrives sooner than expected
Source: Kohler, Alan. “Australians join race for fusion energy as AI pressure on electricity sector starts to bite.” ABC News, 13 October 2025.