Fusion Power Startup Commonwealth Fusion Systems raised $863 million from a long list of investors including Nvidia, Google, Breakthrough Energy Ventures and more.
“We continue to look at the world here and say, ‘How do you merge as quickly as possible?'” “This round of capital is about not just fusion as a concept, but how do you go to merge with commercial industrial efforts.”
The Massachusetts-based company has raised nearly $3 billion so far, bringing together most of its fusion startups. Commonwealth Fusion Systems (CFS) previously raised a $1.8 billion round in 2021.
Fusion power has long been promised as an almost infinite energy source, but until recently investors didn’t think it was worth putting it. Advances in computing and AI have made the sector a hotbed for startups and investors as the pace of research and development accelerated.
Within the fusion reaction, the atoms are compressed and heated until they form a fourth-state material state known as plasma. Once the plasma reaches the appropriate temperature and pressure, those atoms begin to fuse, releasing enormous amounts of energy in the process.
CFS is currently building a prototype reactor called SPARC in the suburbs of Boston. The company hopes to turn its device on later next year and achieve a scientific break-even point in 2027. This is a milestone that produces more energy than the fusion reaction needs to ignite.
SPARC is not designed to sell power to the grid, but it remains important to CFS success.
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“There’s a bit of modeling and physics that we don’t understand yet,” Saskia Maldie JCK, an associate professor of physics at William and Mary University, told TechCrunch. “It’s always an open issue when we turn on an entirely new device that could potentially enter a plasma regime that we’ve never seen before.
Assuming SPARC does not reveal any major issues, CFS expects to begin construction of ARC, a Virginia commercial scale power plant, from 2027 or 2028.
Both the SPARC and ARC designs are by Tokamaks. This is a type of fusion reactor that uses a powerful superconducting magnet to trap and compress plasma. Tokamaks is well known among the research community.
“I know that these kinds of ideas should work,” Mordijck said. “The question is, of course, how does it work?”
Investors seem to like what they’ve seen so far. The list of participants for the series B2 round is long. Ally Yost, CFS’ Senior Vice President of Corporate Development, said one investor was not leading the round, and many existing investors have increased their stock.
Existing investors who have increased their stock include groundbreaking energy ventures, Emerson Collective, Any, Future Ventures, Gates Frontier, Google, Hostplus, Khosla Ventures, LowerCarbon Capital, Safar Partners, Eric Schmidt, Starlight Ventures and Tiger Global.
New investors include Brevan Howard, Morgan Stanley Global, Stanley Druckenmiller, FFA Private Bank in Dubai, Galaxy Interactive, Gigaskare Capital, Hof Capital, Neva SGR, Nevidia nventures, Planet First Partner, War Reventure Partners US and Mitsuir by readi by by red by mitsuir by by by resortium
Such a wide range of investors could help the company develop supply chains, search for partners, build power plants, and buy electricity. So far, the company has signed a deal with Google and has purchased 200 megawatts from ARC.
Mordijck said that the ARC would likely be more expensive than later power plants.
And while SPARC helps to prove that science is healthy, it will do more than that of CFS, Mumgaard told TechCrunch. “It’s very important, but it’s also about knowing the ability you need to be able to deliver it. It’s also about having a receipt, knowing how many of these things are.”
The new round will help CFS advance in SPARC, but it is not enough to build an arc. At this point, the company does not know exactly what form ARC funds will take.
“The fact that it is the first of kind technology is wrinkled and then it has a big impact on where the capital comes from,” he said. “We’re not entirely sure, but we’re quite committed to doing this, and our investors are quite committed to doing this.”
