Opinion piece by Warren McKenzie, Founder and Managing Director of HB11 Energy
The world is on the brink of a fusion energy revolution which will become a primary energy source in the second half of the century. Australia must consider our economic future when the coal trains and gas pipelines eventually stop.
We can either watch from the sidelines as other nations lead and risk our future access to this technology, or we can harness our strengths and ensure that Australia remains a global player in the energy market of tomorrow.
Opinion: Is nuclear fusion the missing piece in Australia’s energy debate?
Have we been overlooking the possibility?
Published at Energy News Bulletin, 2 May 2025
Fusion energy is considered clean energy by most western nations.
Unlike traditional nuclear fission, which splits atoms and produces long-lived radioactive waste, fusion merges atoms, offering the promise of near-limitless clean energy without the same environmental or safety risks.
While fusion has long been a scientific endeavour, recent breakthroughs have brought the timeline forward by decades. It is now widely anticipated that this emission-free source of primary energy will first reach an electricity grid in the 2030s and become a major part of the energy mix, firming intermittent renewables by 2050.
This has sparked global momentum, with countries like the United States, United Kingdom, Germany, China, and Japan investing heavily in fusion, and a rapidly expanding private fusion industry now consisting of 45 companies.
Meanwhile, Australia is now one of the only countries in the Western world without a fusion energy strategy at least in development.
In our opinion, fusion is not subject to Australia’s nuclear prohibitions—so there is nothing stopping us from taking advantage of the energy security and economic benefits of the energy source that will dominate the second half of this century.
So what’s at stake?
Last month’s blackout of Portugal and Spain have taught the world a lesson in energy security and the importance of firming electricity in our future grid, expected to be powered primarily by intermittent renewables. While Australia’s great resources of gas can provide this in the short term, in the long term, fusion may be an ideal solution when we decide to wean off gas for a fully decarbonised country.
However, for Australia, the situation is worse and extends well beyond an energy transition of the grid. Eventually, global demand for coal and gas will run dry. Today, we can thank two centuries of fossil fuel exports for much of the great quality of life we share. However, tomorrow we risk missing out on billions in future export opportunities and becoming dependent on importing next-generation energy for grid firming and industrial use.
Why is it important in this federal election?
Fusion energy is important in this federal election because it offers a long-term, zero-emissions, grid-firming solution to Australia’s energy and climate challenges without the waste or risks of traditional nuclear fission. While the political debate remains stuck between renewables and fission, fusion presents a third path that’s cleaner, safer, and already gaining serious traction globally.
The next government must acknowledge this potential and commit to a national strategy. That means its inclusion in long-term energy planning, providing policy certainty, and participating in international missions to build the world’s first fusion power plant.
So what does Australia need to do to ensure access to fusion energy technology?
Australia doesn’t need to build a fusion industry from scratch or divert focus from becoming a renewable energy superpower.
We could, for example, tap into our $4.3B photonics industry to capture the supply chain for laser fusion—especially relevant given that lasers make up half the capital cost of a laser fusion power plant. Additionally, Australia could leverage our copper and rare earth resources to produce the large magnets, which account for around a third of the capital costs for a magnetic fusion power plant.
In both cases, there’s a billion-dollar export opportunity for every gigawatt of fusion power built. There are two clear steps Australia can take today to secure a role in fusion’s future, with the first being to follow the lead of the US and Europe by recognising fusion as “clean energy.”
This would remove any perceived political risk and unlock domestic investment in local fusion ventures—investment that, to date, has mostly flowed overseas.
Secondly, Australia should forge deeper partnerships with fusion leaders like the UK and US, both of which are establishing regulatory frameworks and future supply chains that will define who benefits from this new industry.
The world is on the brink of a fusion energy revolution, and Australia has a choice: we can either watch from the sidelines as other nations lead and risk our future access to this technology, or we can harness our strengths and ensure that Australia remains a global player in the energy market of tomorrow.
