Fusion power specialist, Commonwealth Fusion Systems, secures a massive $863 million investment for grid integration.
Commonwealth Fusion Systems (CFS), a pioneering fusion energy company, has announced a successful Series B2 fundraising round, securing $863 million in investments. This round brings the total funding for CFS to nearly $3 billion, following a $1.8 billion fundraise in 2021.
The latest financing round saw significant investments from existing backers, including Bill Gates-backed Breakthrough Energy Ventures, Google, Eni, Lowercarbon Capital, and others, who increased their stakes in this round. Notable new investors include Brevan Howard Macro Venture Fund, Morgan Stanley's Counterpoint Global, NVIDIA's venture capital arm NVentures, and a consortium of 12 Japanese companies led by Mitsui, Mitsubishi, and the Development Bank of Japan.
Mitsui and Mitsubishi, who were among the main investors in the latest financing round, made a billion-dollar investment to support the development of fusion energy technology. Their investment recognizes CFS' leadership role in developing a new technology that promises to be a reliable source of clean, almost limitless energy.
Bob Mumgaard, CEO and Co-Founder of CFS, stated that investors recognize that CFS is making fusion power a reality and see that the company is executing and delivering on its objectives. He further added that this funding recognizes CFS' leadership role and will enable investors to have the opportunity to capitalize on the birth of a new global industry.
Carmichael Roberts, Managing Partner at Breakthrough Energy Ventures, stated that achieving commercial, affordable fusion power would be a transformative milestone in human history. He also mentioned that CFS is advancing fusion at a pace and scale that can turn this future into reality, providing a unique opportunity to shape the energy landscape.
One of the key objectives of the funds raised will be to complete CFS's fusion demonstration machine under construction in Massachusetts and continue development on its first grid-scale fusion power plant in Virginia. Google has agreed to purchase half the output of the grid-scale fusion power plant, a testament to the growing confidence in CFS's technology and its potential to revolutionize the energy sector.
CFS is collaborating with MIT's Plasma Science and Fusion Center to build SPARC, a demonstration machine using a "tokamak" design. The company aims to connect the grid-scale fusion power plant to the grid in the early 2030s.
Fusion energy, the process of combining two atoms to form a single atom to release energy, is considered the "Holy Grail" of clean and abundant energy production. It can produce power from hydrogen without producing carbon emissions associated with fossil-fuel based power, making it a promising solution for addressing climate change.
Roberts emphasized that AI and data centers are driving unprecedented demand, making CFS's work particularly significant. Strategic partnerships with Dominion Energy and Google further support the development of the grid-scale fusion power plant. With this new funding, CFS is one step closer to realizing its vision of a clean, sustainable, and virtually limitless source of energy.
