A spherical torus (ST) fusion energy development path which is complementary to the proposed tokamak burning plasma experiments such as ITER is described. The ST strategy focuses on a compact component test facility (CTF) and high performance advanced regimes leading to more attractive Demo and power plant scale reactors. To provide the physical basis for the CTF an intermediate step needs to be taken, which we refer to as the 'next-step spherical torus' (NSST) device and which we examine in some detail herein. NSST is a 'performance extension' stage ST with a plasma current of 5–10 MA, R = 1.5 m, BT ⩽ 2.6 T and the possibility of varying physical parameters. The mission of NSST is to (1) provide a sufficient physical basis for the design of a CTF; (2) explore advanced operating scenarios with high bootstrap current fraction and high performance which can be utilized by CTF, Demo, and power plants; and (3) contribute to the general science of high β toroidal plasmas. The NSST is designed to utilize a TFTR-like site to minimize the cost and time required for design and construction.