Fusion energy, the process that powers the sun and stars, has long been viewed as the “holy grail” of energy production, with the promise to produce immense amounts of clean energy, but has long proved elusive for researchers and developers, especially getting at least as
much, if not more, energy out of the reaction than went in to making it – what is known as “breakeven” fusion.
This process is known as “breakeven” fusion. Scientists and engineers have made significant developments recently, which serve as major steps in the quest to harness fusion energy. In 2022, the United States (U.S.) Department of Energy (DOE) announced that the National Ignition Facility (NIF) in California produced a fusion reaction resulting in a net energy gain.
In addition to government projects, a commercial fusion industry has also emerged – with investor and customer interest driven by both fusion’s immense potential and significant technical milestones in recent years. Among other things, investment in fusion exceeded US$6 billion in 2022 in just the U.S. alone, and in September 2023, the UK government invested £650 million in fusion projects. The mid-2020s is an important timeframe for fusion. Among the announced anticipated commercial project technical milestones, currently, U.S. company Helion Energy, anticipates that its 7th generation prototype – Polaris – is expected to demonstrate net positive electricity to the grid, and Commonwealth Fusion Systems announced that its next prototype – SPARC – is expected to demonstrate net positive electricity.
Fusion developments around the world
Widespread investment in fusion is driven by technological milestones and concrete partnerships and agreements. In 2023, Helion signed the first power purchase agreement (PPA) with Microsoft for a 50 MW fusion power plant – the first fusion PPA in the world – as well as a deal with Nucor to use a 500 MW plant to decarbonize the industrial sector.
The UK Government and other leading regulatory bodies like the U.S. Nuclear Regulatory Commission have also stated that they intend to regulate fusion under existing radioactive materials frameworks for the materials they use and produce – recognizing significant differences in nuclear fission plants – aligning key movers in the regulatory space.
The commercial and regulatory developments in fusion align with significant technical advancements across the public and private sector, ensuring that fusion can continue to make progress towards its breakeven goals. In addition to the NIF announcements, in 2022, JET tokamak achieved a first-ever sustained, high-confinement plasma using the same wall materials and fuel mix that the ITER facility in France will use. In 2021, ITER, an international nuclear fusion research project, projected its first plasma achievement in the mid-2020s. Participating members in ITER include China, India, Japan, Russia, the EU, and the U.S. On the commercial side, a number of companies have announced significant developments as well. The ultimate goal – practically unlimited safe and clean power – is a massive carrot for investors, especially those looking to capitalize on the shift to green energy.
Key takeaway for fusion
To accelerate the commercialization of fusion, industry and governments must work together: From a safety, regulatory, and risk perspective, the U.S. and the UK are prepared, which will streamline implementation in the future. However, governments must engage the private sector and facilitate – rather than impede – innovation, particularly by speeding up approval timelines and establishing regulatory frameworks.