Nuclear Fusion Startups in 2024

Commonwealth Fusion Systems (CFS) is significantly advancing the field of nuclear fusion with its innovative approach to tokamak-based fusion reactors. Decades of worldwide, government-sponsored research have established tokamaks as the leading method for achieving fusion. Traditionally, tokamaks needed to be massive to generate net energy from fusion, but CFS, collaborating with MIT, has developed revolutionary high-temperature superconducting magnets that enable the construction of smaller, more cost-effective tokamak fusion systems. These advances have led to the creation of the SPARC reactor, a critical step towards the first fusion power plant, ARC
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Key to this advancement is the use of a compact tokamak design. The SPARC reactor, a prototype developed by CFS, is noteworthy for its size, being 40 times smaller than the international ITER fusion reactor currently under construction in France. This size reduction is achieved through the use of high-temperature superconducting tape to produce powerful electromagnets, crucial for maintaining the required magnetic fields in a smaller volume

Helion – nuclear fusion startup

Helion
Year founded	2013
Location	Redmond, USA
Stage	Series E
Funding	$550+
Investors	Defense.gov, DOE and others

Helion is known for their innovative approach to magnetic-nuclear fusion reactors that use deuterium as fuel. The process involves generating plasma from deuterium and helium, which is then accelerated by pulsed magnetic fields to induce fusion, releasing high-temperature heat energy that can be used for power generation.

Recent advancements include:

Collaboration with Nucor Corporation
In September 2023, Helion announced an agreement with Nucor Corporation, North America’s largest steel producer and recycler, to develop a 500 MWe fusion power plant at a Nucor steel manufacturing facility in the United States. This project aims to revolutionize energy supply for industrial manufacturing, providing zero-carbon electricity and significantly contributing to the decarbonization of the steel industry

Funding and Development of Prototypes
Helion has received over $570 million in funding and additional commitments of $1.7 billion for the development of commercial nuclear fusion. They have successfully tested their sixth prototype, Trenta, reaching critical temperatures and magnetic compression fields necessary for commercial reactors. The seventh prototype, Polaris, under development since 2021 and expected to be completed in 2024, aims to demonstrate net electricity generation from fusion and helium-3 production through deuterium-deuterium fusion. The pulse rate of this prototype is expected to increase significantly, up to ten shots per second, a substantial improvement over previous models. An eighth prototype, Antares, is currently in the design stage

Projected Electricity Costs and Future Goals
Helion’s approach to fusion has the potential to produce electricity at remarkably low costs, projected at $0.01 per kWh, without relying on economies of scale, carbon credits, or government incentives. Their technology produces helium-3, a rare isotope used in various applications, through a closed-fuel cycle. Helion has also contractually committed to supplying Microsoft with at least 50 megawatts of electricity from its first fusion power plant starting in 2028. This contract marks a significant milestone towards the practical application of fusion energy

Energy Production Goals
The seventh system, Polaris, is working to achieve 20 kEV (thousand electron volts) and is expected to be operational by the end of 2023. The eighth or ninth systems are anticipated to reach the ideal operating levels of 100 kEV.

General Fusion – nuclear fusion startup

nuclear energy startup - general fusion — nuclear energy startup – general fusion

General Fusion
Year founded	2002
Location	Barnaby, Canada
Stage	Series F
Funding	$490+
Investors	Temasek, BDC and others

General Fusion, an avant-garde player in the nuclear fusion arena, is pushing the frontiers of energy technology with its Magnetized Target Fusion (MTF) reactor. This innovative reactor, a paradigm shift in fusion technology, comprises three principal components: a plasma injector, a liquid metal wall, and a piston array. The plasma injector, a marvel of engineering, transforms hydrogen fuel into a plasma state and confines it within a magnetic field. The liquid metal wall, another key element, not only compresses this plasma but also harnesses the energy released from the fusion process. Lastly, the piston array, through a remarkable feat of engineering, collapses the liquid metal vortex, generating a shockwave that further compresses the plasma. The heated liquid metal thus produced is the linchpin in operating a heat exchanger, a critical step in the power generation process.

In a recent development, General Fusion, based in Richmond, Canada, has announced a significant leap forward. The company has unveiled plans for a new MTF machine, the Lawson Machine 26 (LM26), poised to reach fusion conditions of over 100 million degrees Celsius by 2025 and aiming for scientific breakeven by 2026. This development marks a pivotal moment in the company’s trajectory, bolstered by a Series F raise of $25 million USD. The infusion of funds, complemented by the Canadian government’s support through the Strategic Innovation Fund, underpins the company’s ambitious Demonstration Program. This program seeks to integrate the company’s cutting-edge plasma injector (PI3) with a novel lithium liner compression system, a synergy that is expected to validate General Fusion’s capability to symmetrically compress magnetized plasmas and achieve fusion conditions at scale
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General Fusion’s MTF technology, distinct in the fusion market, was conceived from the outset to scale for cost-efficient power plants, deliberately eschewing the need for expensive superconducting magnets or high-powered lasers. This approach not only sets General Fusion apart but also potentially shortens the path to generating zero-carbon electricity for the grid. The company’s approach to fusion is grounded in a unique technology that creates fusion conditions in short pulses, rather than a sustained reaction, using the compression of a proprietary liner.

TAE – a nuclear fusion startup

TAE Technologies
Year founded	1998
Location	Lake Forest, USA
Stage	Series G
Funding	$1.2B
Investors	Venrock, New Enterprise Associates & others

TAE Technologies, formerly known as Tri Alpha Energy, has emerged as a formidable player, setting a brisk pace in the race to unlock the potential of fusion energy. The company’s unique approach, leveraging its advanced beam-driven Field Reversed Configuration (FRC) technology, has captivated the financial world and sparked keen investor interest. This technology, which creates a superheated plasma environment within a closed magnetic field, harnesses accelerated particles through hydrogen and boron fusion (p-B11) to generate helium and energy — a process with a profoundly clean environmental footprint.

2023 has been a banner year for TAE Technologies, showcasing significant progress and attracting substantial capital. In July, the company announced a robust $250 million funding round, drawing investments from industry giants like Chevron and Google. This latest influx, part of an impressive $1.2 billion raised to date, underscores the market’s confidence in TAE’s fusion vision. This funding is earmarked for the construction of TAE’s next research reactor, Copernicus, following the successes of its predecessor, Norman. Norman, TAE’s fifth-generation machine, has exceeded expectations, achieving plasma temperatures over 75 million Celsius (135 million Fahrenheit), a critical milestone on the path to viable fusion energy

Tokamak – nuclear fusion startup

nuclear energy startups - tokamak energy — nuclear energy startups – tokamak energy

Tokamak Energy
Year founded	2009
Location	Abingdon, UK
Stage	Series B
Funding	$90M
Investors	US Government / Future Planet Capital

Tokamak Energy’s ambitious plans are not merely aspirational. Over the past year, the company has achieved remarkable scientific milestones with its latest prototype spherical tokamak. These advancements have laid the groundwork for Tokamak Energy’s roadmap towards the next phase of development, targeting competitive, commercial fusion energy. Kelsall emphasized the company’s focus on evaluating opportunities with potential financial investors and strategic partners to support their plans to demonstrate clean, grid-ready fusion power by the early 2030s
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Founded in 2009 as a spin-off from the Culham Centre for Fusion Energy, Tokamak Energy has grown substantially, now employing over 200 people. To date, the company has raised a total of $250 million, comprising $200 million from private investors and $50 million from the UK and US governments

First Light Fusion – a nuclear fusion startup

nuclear energy startups - first light fusion

First Light Fusion
Year founded	2011
Location	Oxford, UK
Stage	Series C
Funding	$100M+
Investors	Invesco, Tencent andInvesco & others

First Light Fusion, a notable player in the field of nuclear fusion technology, is advancing a novel approach centered on inertial confinement fusion. This innovative process, fundamentally different from more traditional magnetic confinement methods, employs a symmetrical implosion mechanism to mimic the intense conditions found at the sun’s core. Utilizing helium derived from water, First Light’s technique aims to achieve temperatures comparable to those at the sun’s center.

The crux of this methodology lies in harnessing the immense heat energy generated through this process for the production of power. This approach, if successful, represents a paradigm shift in fusion technology, offering a potentially cleaner and more efficient alternative to current nuclear fusion methods. The emphasis on inertial confinement fusion underscores a broader trend in fusion research, exploring diverse pathways to achieve controlled, sustainable nuclear fusion — a long-sought goal within the energy sector.

Marvel Fusion – nuclear fusion startup

Marvel Fusion
Year founded	2019
Location	München, Germany
Stage	Series A
Funding	$67M
Investors	Earlybird Venture Capital, Primepulse & others

Marvel Fusion, co-founded in 2019 by a team of visionaries including CEO Moritz von der Linden, is not just playing in the big leagues; they’re changing the game. Having already raised €60 million, they’re teaming up with defense giant Thales to supercharge the 10 petawatt ELI-NP facility in Romania. Their secret sauce? Ultrafast lasers and “nanostructured” fuel to boost the fusion of protons and boron-11 isotopes. It’s like giving fusion energy a turbo boost.

The collaboration with CSU is a game-changer, setting a new global standard for laser-based fusion research. Imagine a future powered by safe, clean, and reliable energy – that’s the dream Marvel Fusion is chasing. Von der Linden puts it perfectly: “This public-private partnership… propelling the development of a safe, clean, and reliable energy source,” and with the world-class team at CSU, they’re on track to make significant strides.

Slated for completion in 2026, the Fort Collins lab will be home to at least three laser systems, each boasting multi-petawatt peak power and a 10 Hz repetition rate. This unique combination positions the facility as a world-first, designed to grow and evolve with future laser technology

Nuclear Fusion Startups & Challenges

Historical Context and Recent Developments

Historical Hurdles
Fusion power has had a troubled history characterized by over-promises and missed milestones. Despite the basic physics being understood, the industry has struggled to move beyond theoretical concepts to practical applications.
Recent Achievements
Notably, the National Ignition Facility achieved net-positive controlled nuclear fusion in December 2022, marking a significant milestone for the industry. This success indicates that the fundamental concept of fusion power is achievable, although translating it into a viable commercial energy source remains a significant challenge.

Technological and Engineering Challenges

Plasma Confinement and Stability – Achieving and maintaining the high temperatures and particle densities necessary for fusion is a critical challenge. This involves complex plasma confinement techniques using magnetic or inertial methods, each with its own set of difficulties such as managing plasma instabilities and achieving effi cient fuel compression.
Fuel Availability: The availability of fusion fuel, particularly tritium and helium-3, poses challenges. Tritium, with a short half-life, is not abundant in nature, requiring fusion reactors to breed their own tritium. Helium-3, another potential fuel, is rare on Earth, with concepts of lunar mining still in the realm of conceptual designs.
Magnet Technology: The success of magnetic confinement fusion (MCF) relies heavily on advanced superconducting magnet technology. The development and production of high-temperature superconductors are critical for achie ving the high magnetic fields necessary for compact and cost-effective fusion reactors.
Radiation Damage – Materials within fusion reactors are exposed to intense radiation, which poses significant challenges for the durability and longevity of plasma-facing components, structural materials, and functional materials like superconductors.
Power Conversion – Converting the energy released in fusion reactions into usable electricity is another major hurdle. This involves thermal conversion processes similar to conventional power plants but adapted to the unique conditions of fusion energy.

Economic and Commercialization Challenges

Investment and Funding: Fusion startups have recently seen an increase in private investment, totaling over $6 billion so far. This influx of capital is crucial for the sector to make rapid gains and move towards commercialization.
Market Dynamics: The fusion industry’s pace of progress hinges on fundraising capabilities and technological advancements. The ability of fusion companies to hit milestones and advance their technology will be crucial in determining whether fusion can compete economically with other energy sources.
Regulatory and Labor Challenges: Startups face regulatory uncertainties and a need for skilled labor. Navigating the regulatory landscape and ensuring an adequate supply of skilled professionals are key factors in advancing fusion technology.

Industry Outlook

Commercialization Prospects: The ultimate goal is to build machines that can produce more power than they consume, a feat not yet achieved but seemingly close. The focus is on creating the necessary conditions for fusion reactions and ensuring that these conditions can be sustained over long periods for practical energy production.
Practical Delivery and Integration: Building the infrastructure and integrating fusion technology into the existing energy grid are substantial challenges. The process involves not just technological innovation but also practical engineering, supply chain management, and operational testing.

In conclusion, while nuclear fusion startups are making strides in overcoming historical challenges and leveraging new technological advancements, significant hurdles remain in plasma confinement, fuel availability, magnet technology, radiation damage, and power conversion.

The path to commercialization is complex, requiring substantial investment, regulatory navigation, and practical engineering solutions. The industry’s success depends on addressing these challenges effectively and advancing the technology to a stage where it can compete with other energy sources.

Find out about nuclear fusion stocks here.

Alexander Müller

Investment Analyst at Morgan Stanley | Website

Meet Alexander Müller, the go-to investment analyst at Morgan Stanley with a flair for the future! Alexander, known to his colleagues as "Fusion Müller" for his deep expertise in the nuclear fusion sector, is not your typical number cruncher. With a keen eye for emerging technologies and a passion for sustainable energy, he's always one step ahead in identifying groundbreaking investment opportunities.

Alexander's journey into the world of finance was anything but ordinary. He started as a physicist, fascinated by the stars, and this celestial curiosity led him to the dynamic field of nuclear fusion. His transition from academia to finance was fueled by a desire to bridge the gap between innovative science and practical investment strategies.