A $1.4bn (€1.2bn) fund created by the Shanghai government will invest in one of the nation’s ambitious “moonshot” projects, a state-backed firm attempting to harness nuclear fusion technology.

The Shanghai Future Industry Fund plans to make an investment in China Fusion Corp, according to a statement. It is the first investment since the fund was created last year.

Shanghai officials announced the fund in September, with financing provided by the city’s department of municipal finance and the goal of promoting innovative and disruptive technologies. It plans early investment in promising, small companies.