Klaus Hesch: Building Europe’s Fusion Supply Chain

This article has been translated using artificial intelligence

At the Future Trends Forum on fusion energy, the Bankinter Innovation Foundation brought together more than twenty international experts to assess the true state of this transformative technology -and what it will take to scale it. One of the most striking messages came from Germany, delivered by Klaus Hesch, engineer and strategic project lead at the Karlsruhe Institute of Technology (KIT).

With decades of experience in large-scale scientific infrastructures and public-private collaborations, Hesch offered a blunt assessment: Europe is betting on fusion -but it’s not building the supply chain required to industrialize it.

According to Hesch, the problem isn’t technological -it’s systemic. Without clear demand signals, long-term planning, and appropriate financing mechanisms, European suppliers won’t take the risk of investing in production capacity for critical components. And if Europe doesn’t solve this soon, it risks being left behind—not as a leader, but as a customer.

If you’d like to watch Klaus Hesch’s full talk at the Future Trends Forum, you can find it here::

Klaus Hesch: “The Fusion Supply Chain: A Strategic Vision”#FusionForward

The Supply Without Demand Paradox

For Klaus Hesch, the most urgent bottleneck is not scientific -nor is it about experimental reactors. It’s industrial. Specifically, it lies in the lack of a solid, coordinated, and financially viable supply chain capable of producing the components that fusion energy requires.

The issue, he warns, is a circular one: suppliers don’t invest in capacity because there are no guaranteed orders, and governments or project promoters don’t place orders because there’s not enough industrial capacity in place. The result: supply doesn’t take off because demand remains undefined -and vice versa.

“The components we need aren’t available off the shelf. And no one will invest millions to develop them without knowing if they’ll be used.”

Hesch speaks from experience. At the Karlsruhe Institute of Technology (KIT), he has worked with companies, governments, and European agencies on projects related to ITER, DEMO, and other key programs in the fusion ecosystem. What he sees, time and again, is a structural disconnect between science, industry, and policy.

In his view, Europe cannot afford to continue with this fragmented approach. If it wants to remain competitive in fusion, it must act as a coordinated bloc: setting shared goals, aligning industrial timelines, and generating sufficient aggregated demand to mobilize private investment.

“It’s not just about technology -it’s about long-term industrial planning. And right now, that vision doesn’t exist.”

Strategic Suppliers: The Missing Link in Fusion

One of the biggest misconceptions about fusion is that industry is ready to scale as soon as the science is proven. But according to Klaus Hesch, that’s far from the truth. Most critical components –superconductors, cryogenic systems, complex structures, special coatings, electronic controls- are neither commercially available nor industrially scalable.

Even more concerning: Europe lacks a network of strategic suppliers capable of producing these components reliably, with high quality, and on competitive timelines.

“Most industrial companies have never worked under the extreme conditions that fusion demands.”

Hesch emphasizes that the solution is not to build new industrial giants from scratch, but rather to identify companies with adjacent capabilities -in aerospace, defense, automotive, or advanced materials—and support their transition into the fusion sector.

But that will only happen if there’s a clear incentive. For an SME or mid-sized company to invest millions in adapting processes or equipment, it needs to see a real, predictable, and sustained market ahead.

“The issue isn’t technology -it’s visibility. Companies can’t commit if they don’t know what’s coming over the next ten years.”

According to Hesch, this is the missing link between Europe’s world-class research centers and the kind of industrial rollout fusion will require. And without solving it, Europe won’t be able to move from the lab to the market.

What Europe Must Do—And Must Do Now

Klaus Hesch’s message is clear: if Europe wants to be competitive in fusion energy, it needs to act with urgency. And research alone is not enough. What’s needed is a comprehensive industrial strategy, with a clear focus on building the supply chain. According to Hesch, these are the key steps to make that happen:

1. Provide Clear and Sustained Demand

Europe must send an unambiguous signal to industry: fusion is a real commitment, backed by concrete projects and secured budgets. That means setting clear roadmaps, establishing procurement timelines, and reducing uncertainty for suppliers.

2. Promote Industrial Co-Financing Models

Most companies can’t shoulder the risk of developing complex components without firm purchase orders. Hesch proposes public-private co-financing mechanisms, where the initial investment is shared and returns are tied to technological and industrial milestones.

3. Invest in Capabilities, Not Just Results

Instead of only funding finished products or closed projects, Europe should invest in industrial capabilities: pilot lines, assembly centers, technical workforce training, and process certification.

“We’re putting all our effort into the reactor. But without the industry to build it, the reactor simply won’t happen.”

4. Coordinate at the European Level

National efforts, while necessary, aren’t enough. Hesch advocates for a coordinated European strategy -one that avoids duplication, aligns incentives, and prioritizes strategic investment across the full value chain. That also includes revisiting regulations, standardization, and public procurement processes.

Without Industry, There’s No Energy Future

Klaus Hesch’s talk at the Future Trends Forum highlights a critical point often left out of the fusion conversation: fusion energy will not become a reality without building the industry that can make it happen.

Europe has the knowledge, the scientific talent, and world-class research infrastructure. But without a robust, coordinated supply chain aligned with the pace of industrial investment, the leap from lab to market simply won’t occur.

And the risk isn’t just technical or financial -it’s geostrategic. Because if Europe doesn’t move fast, other countries will take the lead and control the key building blocks of the new energy economy.

At the Bankinter Innovation Foundation, we say it clearly: fusion is not just science. It’s industrial policy. And it demands vision, collaboration, and urgency.

This article is part of the ongoing analysis conducted by the Bankinter Innovation Foundation. The full report, Fusion Energy: A New Energy Revolution Underway, brings together insights from more than twenty international experts and outlines the five critical pillars needed to scale fusion energy as a climate, economic, and technological driver.

Download the report to explore how we can start building tomorrow’s energy system -today.

And if you’re interested in continuing to explore this transformation, don’t miss the upcoming editions of our Fusion Forward series, where we bring society closer -through rigor and vision- to the key forces shaping the energy future already in the making.