$6.2 Billion Fusion Energy Funding Race : Turning the Dream of Creating a Star on Earth into Reality
As climate change continues to pose a significant threat to our planet, fusion energy is rapidly emerging as a potential solution. The momentum behind fusion is growing, fueled by recent breakthroughs in fusion technology and a surge in private sector investments. This has ignited a global race to both develop and eventually commercialize fusion as a carbon-free, safe, and virtually unlimited energy source.
To date, more than 35 private companies have collectively raised over $2.4 billion to explore various fusion concepts. Additionally, governments around the world have committed public funds, bringing the total investment in fusion to over $6.2 billion. This substantial influx of funding, combined with a wealth of talent, has created a sense of optimism regarding the possibility of deploying fusion technology to combat climate change by the 2030s.
Recent Developments in Fusion Energy
Fusion energy has long been considered the holy grail of clean energy sources. Mimicking the process that powers the sun and stars, fusion promises nearly limitless power with zero carbon emissions. After decades of slow progress, the field is now experiencing a surge of private investment and innovation. This boom has been driven by both technical advances and increased environmental pressures. On the technical front, new high-temperature superconductors, advanced materials, and improved computing power have enhanced researchers' ability to contain and control fusion reactions. Venture capital firms, billionaire investors, and industrial corporations are now racing to capitalize on the fusion industry’s momentum.
In December of 2022,For the first time globally, it initiated a nuclear fusion reaction that yielded more energy than it consumed, a milestone referred to as "ignition." By directing approximately two megajoules of energy from lasers onto a minuscule target, the facility released over three megajoules in response. This achievement underscores the tangible progress being made in the field.
Simultaneously, innovative control techniques and improved materials have paved the way for more effective plasma confinement—a critical requirement for sustained fusion reactions. The Joint European Torus (JET) experiment, utilizing an upgraded tungsten wall, achieved a record duration of 5 seconds of stable plasma, showcasing significant advancements. Beyond the conventional tokamak design, exploration into stellarators, laser fusion, and other magnetic confinement methods offers renewed hope and diversification in addressing the formidable technological challenges of fusion energy.
Emerging Trends and Approaches
The fusion landscape has witnessed a surge in private sector interest. At least 35 global companies are actively pursuing fusion research, with the majority of them founded after 2010. These startups have collectively secured nearly $6.2 billion in private funding, along with additional grants from governments. Notably, four companies—Commonwealth Fusion Systems, General Fusion, TAE Technologies, and Tokamak Energy—account for 85% of the total investment. To delve further into the landscape of active fusion research, here is the list of global companies spearheading efforts in the fusion research.
In the rapidly evolving landscape of fusion research, two predominant approaches have taken center stage, they are magnetic confinement and magneto-inertial confinement. Recent advancements within these frameworks showcase a promising trajectory for the realization of commercially viable fusion energy.
One notable player in this field is Commonwealth Fusion Systems (CFS) is an innovative startup seeking to develop compact fusion power plants leveraging advanced superconducting magnets. Founded in 2018,which successfully secured over $2 billion in funding for the construction of SPARC, a net energy fusion machine. The funding round was led by Tiger Global Management and Bill Gates . CFS leads the charge with its "ARC" tokamak design, utilizing high-temperature superconductor (HTS) magnets to achieve smaller, more efficient reactors. CFS aims to build a small fusion power plant based on the ARC tokamak design. This funding will support CFS’ goal of demonstrating net energy production from its SPARC fusion system by 2025. CFS is taking a unique approach to fusion energy by adapting advances in high-temperature superconductors to enable smaller and stronger magnets. The company has partnered with MIT to utilize its new high-temperature superconducting magnet technology. More compact magnets can enable smaller fusion systems that are cheaper to build. CFS’ proposed ARC power plant design claims to produce 200 MW of electricity at 1/10th the capital cost of larger traditional tokamak fusion reactor designs. By pursuing modular high-field fusion systems, CFS aims to be the first in the world to create a compact, economical, and carbon-free fusion power source.
Tri Alpha Energy (TAE) has also made substantial strides, raising over $1.3 billion. Their breakthrough moment occurred when they heated a ball of hydrogen plasma to an astounding 10 million degrees Celsius and maintained stability for 5 milliseconds with no decay. This achievement underscores the remarkable progress within the fusion energy domain. TAE Technologies has pioneered the pursuit of the cleanest and most economical path to providing electricity with hydrogen-boron (also known as p-B11 or p11B), an abundant, environmentally sound fuel. In February 2023, TAE announced, in collaboration with Japan’s National Institute for Fusion Science (NIFS), the first-ever hydrogen-boron fusion experiments in a magnetically confined fusion plasma.
Helion Energy, backed by a substantial $500 million in funding, is poised to complete the construction of its fusion generator, Polaris. Notably, Helion aims to produce a fusion engine that is 1,000 times smaller, more than 500 times cheaper, and achievable 10 times faster than comparable projects. Helion’s fusion power is estimated to be one of the lowest-cost sources of electricity. Specifically, their cost of electricity production is projected to be $0.01 per kilowatt-hour (kWh). Helion is currently building its 7th fusion prototype, Polaris, which is expected to be the first fusion device to demonstrate electricity production from fusion. The company's partnership with Microsoft, through a power purchase agreement, further positions Helion as a key player in providing baseload power by 2028.
General Fusion, taking a fast and practical path towards market implementation by the 2030s, employs its Magnetized Target Fusion (MTF) technology. Demonstrations of plasma energy confinement times, plasma temperatures, and compression system performance align with the company's goal of reaching 10 keV (100 million degrees Celsius) in the MTF machine. Collaborative agreements with UKAEA and partnerships with Canadian Nuclear Laboratories underscore General Fusion's commitment to advancing the commercialization of magnetized target fusion energy.
Tokamak Energy, in its latest endeavors, introduced a groundbreaking cryogenic power electronics technology for its superconducting magnets. This innovation not only reduces cooling costs by 50% but also enhances the efficiency of tokamak fusion reactors, showcasing a commitment to improving the viability of fusion as a sustainable energy source.
First Light Fusion, an inertial fusion company, originally a spin-out from the University of Oxford, completed the construction of a $107 million hyper-velocity gas gun. This significant investment complements their electromagnetic propulsion device, Machine 3, dedicated to advancing projectile fusion technology. This mechanical compression could offer a faster, cheaper path to net energy gain.
Kyoto Fusioneering, spun out of Kyoto University, Kyoto Fusioneering designs and develops fusion technologies that address key commercialization challenges. KF develops advanced gyrotrons for fusion plasma heating, as well as thermal cycle and fuel cycle systems. Additionally, the company possesses advanced plant engineering capabilities for the overall integration of these technologies into a functional power plant. Their focus lies not just on replicating the sun's energy on Earth, but on doing so efficiently and commercially. They tackle critical challenges through a multi-pronged approach, specializing in three key areas:
Gyrotron Systems: These high-powered microwave generators are essential for heating and sustaining the plasma, the heart of fusion reactors. Kyoto Fusioneering boasts world-leading expertise in gyrotron design, aiming to create compact, yet powerful systems for future reactors.
Tritium Fuel Cycle Technologies: Tritium, a rare isotope of hydrogen, fuels the fusion reaction. Kyoto Fusioneering seeks to develop a closed-loop system for breeding and managing tritium, minimizing dependence on limited natural sources.
Breeding Blankets: These surround the plasma, capturing energy and breeding tritium for fuel production. Kyoto Fusioneering innovates in material selection and design to optimize energy extraction and tritium generation.
Focused Energy, the company is supported by TU Darmstadt and was founded in 2021 after years of extensive research. Focused Energy is dedicated to developing a method to enable efficient, controlled fusion energy by utilizing high-power laser beams to drive a fusion reaction, a technique known as inertial fusion energy (IFE). Focused Energy is one of the eight fusion developers the Department of Energy selected in late May for funding under the public-private Milestone-Based Fusion Development Program, and the only developers using an inertial confinement concept.
Marvel Fusion was founded in 2019, Marvel’s approach is slightly different. The NIF is pursuing indirect laser fusion, which uses a hollow cavity (or “hohlraum”) to convert laser energy into a bath of X-rays that shoot into the surface of a capsule holding the fuel source. In direct drive laser fusion, there is no hollow cavity — instead the lasers go directly into the fuel capsule. Marvel Fusion is still in its very early days and has no more than a computer.
Avalanche Energy is developing a 1-100kWe fusion microreactor called “The Orbitron”. Avalanche has raised over $51 million in venture funding since its inception. The company is pursuing a magnetized target fusion (MTF) approach that aims to achieve net energy gain by compressing a deuterium-tritium plasma fuel target with magnetic fields generated by pulsed-power systems. Avalanche claims its compact, cylindrical reactor design can reach the extreme temperatures and pressures required for fusion while overcoming some of the constraints of earlier MTF concepts.
Type One Energy is a Seattle-based private fusion company that has recently emerged from stealth mode with over $30 million in venture capital funding. The 2019 startup is pursuing a magneto-inertial fusion (MIF) approach. The company aims to achieve net energy gain by compressing hydrogen-boron plasma fuel using a hybrid of pulsed magnetic fields and inertial compression from electromagnetic linear motors. This hybrid MIF concept hopes to reach fusion temperatures and pressures while requiring less extreme driver conditions than pure magnetic or inertial fusion approaches.
HB11 Energy is an Australian company working to develop safe, clean and virtually unlimited fusion energy using hydrogen and boron-11. Founded in 2017 by Dr. Heinrich Hora and Professor Warren McKenzie. HB11's approach to fusion does away with rare, radioactive and difficult fuels like tritium altogether – as well as those incredibly high temperatures. Instead, it uses plentiful hydrogen and boron B-11, employing the precise application of some very special lasers to start the fusion reaction.
nT-Tao, an Israeli startup founded in 2016, is developing a compact and scalable nuclear fusion system. In 2023, nT-Tao raised a $22M Series A round led by Delek US, a Fortune 500 downstream energy company, among others. nT-Tao’s proprietary ultra-fast heating technology for high-density plasma is expected to accelerate the timeline for commercialization.
Helical Fusion was founded in 2013. Their helical fusion reactors are designed to enable the coexistence of humans and the Earth for the next million years. Helical Fusion Energy distinguishes itself through its utilization of a helical magnetic confinement approach, an innovative method to achieve and sustain controlled nuclear fusion reactions. The helical design offers advantages in terms of stability, containment, and increased efficiency compared to traditional tokamak designs. This unique approach sets Helical Fusion Energy apart in the competitive landscape of fusion research.
Renaissance Fusion was founded in 2019. Renaissance Fusion focuses on stellarators, a type of fusion reactor with a more complex magnetic field configuration. While tokamaks have faced challenges in maintaining plasma stability, stellarators offer inherent stability but have traditionally been hampered by the intricate design of their magnetic coils. Stellarator heating has higher off-the-plug efficiency: delivering 1kWh to the plasma costs 2-3 kWh of electricity in a stellarator, compared to over 100 kWh in laser fusion. Another advantage is that stellarators can stay “on” all the time, whereas high power lasers are pulsed and have low repetition rates.
Realta Fusion is a fusion energy company that spun out of a large ARPA-e funded project at the University of Wisconsin-Madison 1. The company is developing compact magnetic mirror fusion generators as the lowest capex and least complex path to commercially competitive fusion energy . Realta Fusion aims to create the “lowest capital, least complex path” to fusion energy production. The company is applying advances in super-conducting materials, plasma physics, and computing power to a simple linear fusion reactor configuration.
Lawrenceville Plasma Physics (LPP) was founded in 2003. LPP’s approach to fusion energy is called “Focus Fusion”. The company has been working on developing Focus Fusion for many years and has made significant progress in this field . LPP’s Focus Fusion approach is unique because it uses a dense plasma focus device to create fusion reactions. This approach is different from the more common tokamak approach, which uses magnetic fields to confine the plasma . The plasma focus device is much smaller and less expensive than a tokamak, making it an attractive option for commercial fusion energy production.
Proxima Fusion is a Munich-based startup that aims to develop power plants using QI stellarators, which are devices that form magnetic cages for high-energy matter. The company was founded in 2023 by a team of former scientists and engineers from the Max Planck Society Institute for Plasma Physics, MIT, and Google-X. Proxima Fusion has raised a total of $8.06M in pre-seed funding, with the latest round being an extension of its €7m pre-seed round led by Plural Platform and UVC Partners . The company is working on building the first generation of fusion power plants using QI stellarators, which are optimized, quasi-isodynamic stellarators that are unique amongst fusion devices due to their intrinsic stability and potential for continuous operation. The quasi-isodynamic configurations pioneered at the Max Planck Institute for Plasma Physics ensure that no electric currents persist in the toroidal direction in the confined plasma.
Gauss Fusion is a German Greentech company founded in 2021. The company aims to develop a fusion power plant by using high-field magnetic confinement fusion technology. The company’s approach to fusion energy is based on high-field magnetic confinement fusion, which is the fastest approach to fusion energy production .
NK Labs is a fusion power company that is developing muon-catalyzed fusion for the production of clean energy and fuels . The company’s approach builds on decades of work by government labs worldwide and leverages recent developments in advanced materials and computational optimization . Muon-catalyzed fusion is a process that can operate at much lower temperatures than traditional approaches to fusion . The company aims to improve the efficiency of muon production to enable cost-effective muon-catalyzed fusion . The company’s first fusion device is called the Active Target Muon Source (ATMS) . ATMS is designed to improve the efficiency of muon production by improving the design of the target that gets bombarded with high-energy protons to generate particles called pions, which rapidly decay into muons that are then routed toward the fusion fuel to catalyze a fusion reaction.
Deutelio’s mission is to exploit nuclear fusion energy by magnetic confinement of plasma with the Polomac configuration. This is a steady-state system with a confinement efficiency of 70-80%, compatible with the Deuterium to Deuterium reaction. Deuterium is available in nature and is already marketed in the form of heavy water. The Polomac configuration is different from the Tokamak, which is the baseline of world fusion research on thermonuclear plasma, but it will hardly become a commercial fusion reactor, due to its poor confinement efficiency of 3-5% and the need to produce Tritium. Deutelio’s strategy is to build a small prototype of the Polomac for tuning and experimental validation with hydrogen, then to design, build and sell small heat generators operating with Deuterium and finally to develop and sell electrical generation plants with superconducting magnets.
Blue Laser Fusion was founded in 2022 by Shuji Nakamura, Ph.D., 2014 Nobel Laureate in Physics and Professor at the University of California, Santa Barbara, Hiroaki Ohta, Ph.D., General Partner of Waseda University Ventures (WUV), and Richard Ogawa, a Silicon Valley-based attorney. The company aims to commercialize a nuclear fusion reactor that can produce 1 gigawatt of electricity, the output of a typical nuclear power reactor, using a novel high-power laser technology for fusion. The company plans to adopt an aneutronic reaction using proton-boron11 (HB11) and other target materials for sustainable and environmentally friendly operations 214. Blue Laser Fusion’s process revolves around an inertial confinement fusion reactor integrated with a novel high-power pulse laser. The reactor utilizes a proprietary MJ pulse energy laser with an impressive repetition rate of 10 Hz . The target fuel for Blue Laser Fusion’s process is aneutronic, a popular choice in the industry for its safety, efficiency, and availability.
Crossfield Fusion is a company that has been developing a novel compact fusion reactor targeting carbon-free heat and power generation. The company adopted a new approach to building fusion reactors based on patented technology called the Epicyclotron. Currently, Crossfield Fusion is exploring the use of its technology in the fusion fuel cycle.
Electric Fusion Systems, Inc. is pioneering a new approach to harnessing fusion energy founded in 2020. Their revolutionary technology integrates a patent-pending proton-lithium Rydberg matter fusion fuel with a pulsed electrical stimulation breakthrough. This synergy ensures fusion power generation is not only more efficient but also vastly affordable, especially compared to competitive energy alternatives. They are developing a compact and portable fusion power generator capable of delivering kilowatts, yet scalable to many megawatts.
NearStar Fusion is developing a simplified, modular approach to fusion energy that promises limitless, clean power for the planet. Their design focuses on a proven pulsed fusion method to avoid complexities associated with steady-state plasma, allowing rapid development and mass production of fusion drivers, fuel capsules, and reaction chambers.
In summary, these companies represent a diverse range of approaches to fusion energy, each with its unique technological advancements, funding, and goals. The fusion landscape is characterized by ongoing innovation and collaboration to achieve the common objective of creating a sustainable and economically viable source of fusion power.
The Future of Fusion Energy
Governments worldwide, from the US and the UK to Japan, are launching initiatives to foster public-private partnerships in pursuit of the goal of developing fusion energy. This clean energy source holds promise to provide abundant, zero-emissions power, but overcoming the immense technical and funding barriers has been a persistent challenge. According to the International Energy Outlook 2021 report, global energy demand is projected to grow nearly 50% by 2050 under current policies, underscoring the potential value of fusion energy. for decades, public fusion programs methodically progressed toward scientific milestones. However, over the past 20 years, private companies have entered the arena seeking to accelerate the development of fusion power. This growing industry interest has prompted increased government attention and support. In just the past two years, fusion companies have attracted unprecedented private investments. Additionally, US scientists recently achieved two notable breakthroughs in fusion research at a federal laboratory. Presently, there are over 45 fusion energy companies, with the Fusion Industry Association reporting some of companies confidently anticipating the realization of fusion by 2035 or even earlier. The list is as follows:
Startups and private companies are investing heavily in fusion research, with breakthroughs promising, though fusion’s viability hinges on sustained funding and technological advancements. Challenges ahead include developing materials that can withstand extreme conditions inside fusion reactors, which is critical for efficient power plants, as well as supply bottlenecks and geopolitical conflicts that could impact fusion’s scalability. While achieving net energy gain in a fusion reactor was a milestone, practical application remains distant, with scientists aiming to demonstrate a fusion plant at scale within 10 to 20 years. Public perception also oscillates between optimism and skepticism, requiring patience as fusion research necessitates long-term commitment.
In conclusion, fusion energy holds immense promise. The global race to develop fusion energy has entered a crucial phase. With recent scientific breakthroughs demonstrating progress toward the "holy grail" of limitless clean energy, there is renewed optimism that fusion power can be realized within the next decade. Over $6.2 billion in private and public investment has sparked an innovation boom, as dozens of companies pursue various fusion approaches with increasing coordination and collaboration. While daunting engineering obstacles remain, the current momentum and influx of talent suggest we may soon harness the power that fuels the stars - creating a world powered by safe, carbon-free, and virtually inexhaustible energy from fusion. Our shared future likely depends on rapidly translating these promising developments into commercially viable fusion energy plants that guarantee clean and reliable electricity for all.
