$35m Boost Puts New Zealand on Global Map for Fusion Energy Research

New Zealand-based OpenStar Technologies, led by physicist Dr Ratu Mataira, is pursuing a novel design that sets it apart from international competitors.

The Government is investing up to $35 million to support cutting-edge fusion energy research, backing a New Zealand start-up that aims to place the country at the forefront of one of the world’s most ambitious clean energy frontiers.

Regional Development Minister Shane Jones announced the funding today, confirming a loan through the Regional Infrastructure Fund to support OpenStar Technologies in building a specialised facility for its next fusion machine.

“The successful development of fusion is the holy grail of energy production,” Mr Jones said. “It has the potential to transform New Zealand’s energy security, economy and environmental footprint.”

Fusion: The Ultimate Clean Energy Goal

Fusion energy seeks to replicate the process that powers the Sun—fusing light atoms into a heavier atom to release enormous amounts of energy, without carbon emissions or long-lived radioactive waste.

While still emerging, fusion is widely regarded as a potential long-term solution to global energy demand. More than 50 companies worldwide are racing to deliver a commercially viable fusion breakthrough.

A Distinctively Kiwi Approach

New Zealand-based OpenStar Technologies, led by physicist Dr Ratu Mataira, is pursuing a novel design that sets it apart from international competitors.

“OpenStar’s approach offers potential advantages in stability, cost and scalability,” Mr Jones said. “That makes it an exciting prospect in a highly competitive global field.”

The Government’s investment will help anchor a bespoke fusion research and development facility in New Zealand, ensuring the intellectual capital, infrastructure and economic benefits remain onshore.

Attracting Talent, Investment and High-Value Jobs

The funding will allow OpenStar to scale up its research programme, helping attract international investment and creating high-skilled, high-value jobs across science, engineering and advanced manufacturing.

“This is about backing innovation that lifts productivity and positions New Zealand as a serious player in advanced energy technologies,” Mr Jones said.

Beyond Energy: Wider Economic Spillovers

In addition to energy production, the project is expected to generate spin-off technologies with applications in aerospace and medical technology—sectors where advanced materials, precision engineering and plasma physics can unlock new capabilities.

“These secondary benefits could deliver significant economic returns in the medium term, while fusion technology continues to mature,” Mr Jones said.

Building on a Proud Scientific Legacy

Mr Jones drew parallels with New Zealand’s scientific heritage, noting that Ernest Rutherford, one of the pioneers of nuclear science, began his groundbreaking work more than a century ago.

“Today, we are backing New Zealanders to lead the next great leap—harnessing fusion energy for the benefit of the world,” he said.

The investment aligns with the Regional Infrastructure Fund’s focus on projects that drive growth, foster innovation, strengthen energy security and support long-term economic resilience.