The government of New Zealand is investing up to NZD35m (€17.8m, $21m) to help local startup OpenStar Technologies position New Zealand at the forefront of the global research into fusion energy.

Regional development minister Shane Jones said in a statement the loan will support the creation of a specialised facility for Wellington-based OpenStar’s next fusion machine.

“The successful development of fusion is the holy grail of energy production. It could be a game-changer for this country’s energy security, economy and environment,” Jones said.

The statement said fusion energy is an emerging technology that seeks to replicate the process powering the Sun by fusing light atoms into a larger atom, releasing a vast amount of carbon-free energy.