AI BOOM DRIVING RENEWED GROWTH IN FUSION

Almost $3B invested into fusion companies in 2024, says Cleantech Group

“Unique and complex reactor systems that previously would have been too difficult or uneconomical to pursue are seeing growing interest due to the advances in computing, 3D printing, precision manufacturing, advanced control systems, and higher-powered magnets. While many of these emerging technologies still have critical milestones, they need to achieve to prove out their concepts, their claims of attaining faster speeds-to-scale or better plasma stability are attracting the attention of investors interested in funding multiple pathways to commercialize fusion.”

--Zainab Gilani, Cleantech Group Associate, Energy & Power.

Interview with Zainab Gilani

By Suzanne Forcese

WT: How is energy demand expected to evolve and how does that impact the investment landscape?

Gilani: The U.S. Energy Information Administration (EIA) says global energy demand — driven by population growth as much as key sectors such as data processing — has the potential to increase 50% by 2050 while the IEA estimates that global energy demand could double by 2050.

A boom in power-hungry AI systems is rekindling interest in fusion technology, with investments more than tripling over the past year.

WT: What is fusion energy? Where does the fuel used to create fusion energy come from? How is fusion energy created and what are the advantages?

Gilani: Fusion energy is the same power produced by the sun. It occurs when smaller atoms essentially “fuse” together to release large volumes of energy as they merge to form heavier atoms.

In most fusion reactors, isotopes of hydrogen like deuterium and tritium can be used.

While deuterium can be sourced from seawater, isotopes like tritium are harder to source.

According to the Max Planck Institute for Plasma Physics, there may only be around 7kg of naturally occurring tritium in the world.

However, as fusion reactors look to use tritium as a fuel source, tritium breeding blankets can be used as a tool to generate tritium from the fusion reaction and recapture tritium.

Other fuel sources that might be used for reactors can include aneutronic fuels such as deuterium-helium-3 and proton-boron-11.

Some of the advantages of fusion include its inherent safety and the fact that it produces extremely little high-level radioactive waste.

WT: Can you give us a brief timeline of how fusion energy has evolved and the different methods of creating it please?

Gilani: Early fusion experiments were tested and researched in the 1900’s along with various other nuclear programs. Tokamaks were thoroughly researched in later years and in the early 2000’s, as research programs focused on these systems through the International Thermonuclear Experimental Reactor and Joint European Torus.

While tokamaks use magnetic confinement to generate and stabilize plasmas where fusion reactions occur, other technologies like inertial confinement fusion systems use lasers.

In 2022, the National Ignition Facility demonstrated a critical milestone called ‘net energy gain’ as they were able to use 192 lasers to generate a fusion reaction that produced more energy than was put into it by the lasers.

Since then, various fusion reactors have received funding to explore multiple pathways to generate fusion reactions. Commonwealth Fusion Systems, Tokamak Energy, NEOFusion, and others are advancing tokamak systems. Xcimer Energy, MarvelFusion, Focused Energy are a few of the companies exploring laser-based inertial confinement. Additionally, there are multiple other companies looking to achieve net energy gain by using novel and different approaches including levitate dipole systems, magneto inertial fusion systems, z-pinch, pulsed magnetic inertial, and more.

WT: What are some of the key findings regarding investments?

Gilani: We are seeing a new breed of investors. Helion, which already has a power purchase agreement with Microsoft for 2028, earlier this year closed a $425M Series F funding round, with AI pioneer Altman among its backers. Pacific Fusion raised $900M in commitments from investors such as Google and LinkedIn.

Corporate backers for fusion include automotive giants Toyota and Honda, oil majors Shell and Chevron, in addition to expected moonshot investors Lowercarbon Capital and Breakthrough Energy Ventures.

WT: Moving forward what is the vision for fusion energy?

Gilani: As a source of carbon-free, baseload power, the potential for fusion power to provide energy for a range of different applications is tremendous. It could drastically revolutionize manufacturing, industrial, technology, and transportation sectors, to name a few.

Critically, data centers look to consume more and more energy in the 2030s and 2040s if the trends continue, fusion power could be a substantial player in helping tech companies meet their energy needs.

WT: What are the foreseeable challenges?

Gilani: As with all early-stage technologies there are a range of different technical and non-technical challenges fusion systems will have to overcome to scale.

technical challenges include ensuring stable plasmas are formed, materials and components used can withstand harsh fusion conditions, and fuel supplies and supply chains are established and scaled.

Non-technical challenges include ensuring that public perception and understanding for fusion supports growth of the industry, the regulatory and permitting framework for fusion is fit for purpose, and investments continue to finance critical players in the industry.

WT: What are the positive impacts of collaborations with other industries?

Gilani: As fusion technologies grow, there are many ways these systems and solutions can support other industries. High-temperature superconducting materials used in magnetic confinement systems can have applications in grid transmission, transportation, and healthcare fields.

Neutrons and isotopes generated from the reactions can also support medical treatments and research.

Gyrotrons originally developed for the fusion industry using millimeter wave technology can be deployed to support geothermal applications and reach deeper sources of energy.

Should WATERTODAY viewers wish to learn more, we at Cleantech Group are extending an invitation to register for a complimentary webinar on April 8^th

Commercializing Fusion By registering you will also receive the replay.