Based on its extensive expertise in fusion and plasma physics, VTT assisted St1 in carrying out a technical due diligence assessment prior to the energy company’s investment in Novatron Fusion Group.
Key facts
St1 required an in-depth technical analysis of the feasibility, potential and risks involved in Novatron Fusion Group’s novel solution before forming a partnership.
VTT delivered an independent technical assessment on the NOVATRON technology, helping St1 proceed with its long-term investment decision.
With its investment in Novatron Fusion Group, St1 accelerates the development of the Nordic fusion industry and – in the long term – supports energy resilience by providing fossil-free, affordable and abundant energy for all.
A novel approach to overcoming fusion’s challenges
Fusion requires heating fuel to millions of degrees Celsius to form a plasma where nuclei can fuse. Confining this plasma and achieving a sustained fusion reaction, often using powerful magnetic fields, is a major technological challenge. Another hurdle in advancing the technology is making the process economically viable.
Novatron Fusion Group’s (NFG) unique magnetic field design and triple-force plugging technology provide stability and confinement features aimed at overcoming the challenges inherent in the previous and current linear device type of fusion reactor designs. Recognising the technology’s game-changing potential, energy group St1 required an in-depth technical analysis of the feasibility, potential and risks involved in NFG's novel solution before investment. St1 then entered a strategic, long-term industrial partnership with NFG, taking up the role as lead investor and board member after an investment of EUR 13 million in the company.
NFG inaugurated its NOVATRON 1 fusion plasma system at the KTH Royal Institute of Technology in Sweden in June 2025, marking a milestone in the Nordic region in the development of commercial fusion energy.
Harnessing VTT’s leading fusion expertise
Research Team Leader Markus Airila from VTT says that NFG is part of a wave of agile, privately funded companies entering the field of fusion technology with novel concepts and ambitious goals during the past few years. He expects the industry to continue evolving rapidly.
“At VTT, we have around 30 years of experience in carrying out trials and modelling related to plasma physics in various international projects. Our team was able to apply this deep know-how to the unique NOVATRON concept, evaluate how it compares to more traditional solutions and assess its potential opportunities and risks,” Airila says.
He admits that delivering a technical due diligence assessment was very much a learning process for VTT’s team of scientists, both because of the project’s tight schedule and the need to present the report in a concise manner, without too many technical details.
“The project was carried out in three phases. First, we presented our initial high-level assessment of NFG’s technology and business context to St1’s board of directors. In the second phase, we took a deep dive into the company’s operations, including a site visit to their facility in Sweden. In addition, we reviewed NFG’s patent portfolio. The entire assessment was carried out in only a few months, and I believe we were successful in communicating our analysis clearly,” Airila notes.
VTT was a perfect match for the due diligence project, complementing St1’s commercial perspective with top-notch technical capabilities.
Collaboration built on trust and shared goals
During the project, VTT provided St1 with:
World-class expertise in fusion and plasma physics
A dedicated team, enabling an agile and rapid process
Networking opportunities in fusion research and innovation.
According to Linda Werner, Head of Investments and Innovation at St1, VTT was a perfect match for the due diligence project, complementing St1’s commercial perspective with top-notch technical capabilities. Also, a shared history of working on St1’s renewable transition roadmap helped to make the cooperation efficient.
“I think one of the key factors was that we managed to clearly define the scope of the assessment together and ask all the relevant questions. Also, having a small team with exactly the right people in the right positions made such a streamlined process and quick delivery possible,” Werner says, adding that the close and transparent dialogue with NFG was crucial to success.
Driving the Nordic fusion ecosystem forward
Werner says that St1 wants to stimulate the growth of fusion technology in the Nordics and have a role in actively shaping the energy market. Investing in technologies that aren’t yet commercially available is crucial, as nearly 50 per cent of the carbon emission cuts required by 2050 will rely on innovations currently in the demonstration or prototype phases.
“However, advancing novel solutions isn’t possible without regulatory support. The policy framework needs to go together with technology developments if we are to build new value for the future. Having a board seat in NFG and being part of the fusion society also helps us to stimulate the necessary activities both in commercialisation and regulation,” Werner says.
“Besides providing valuable networking contacts to our customers, one of VTT’s strengths is our interdisciplinary offering of various research fields in-house. We are happy to help investors with similar projects, and can easily expand our team with expertise, for example, in materials performance and more traditional areas of nuclear energy and safety,” Airila concludes.
St1 Nordic Oy is an energy group whose vision is to be the leading producer and seller of CO2-aware energy. The group researches and develops economically viable, environmentally more sustainable energy solutions. St1’s energy portfolio encompasses biogas, Sustainable Aviation Fuel (SAF), renewable diesel, solar power and oil products. Furthermore, St1 is advancing various major energy transition projects, including transition investments at their oil refinery in Gothenburg.
The Group has 1,250 St1 and Shell branded retail stations and gas filling points in Finland, Sweden and Norway. The company is in a process of transitioning to a One Brand strategy, consolidating all its retail operations under the St1 brand across the Nordic countries. St1’s Nordic retail network offers marketplaces with fuels, a growing number of EV charging and biogas filling points for heavy-duty transport and car wash, alongside stand-alone convenience stores and restaurants. Headquartered in Helsinki, St1 currently employs more than 1,000 people.
Novatron Fusion Group AB (NFG) is a Swedish company headquartered in Stockholm. Founded in 2019, the company strives to establish fusion energy and the NOVATRON concept as the preferred large-scale dispatchable source of clean, safe, reliable and virtually limitless fusion power.
