The breakthrough in nuclear fusion is likely to spark investment in the technology that could transform the global energy landscape with nearly limitless clean energy.
Investors are on track to pour more than $1 billion into the technology this year. While that’s down from 2021, a boom year when spending exceeded $2.6 billion, it’s almost triple the amount from 2020 and the trend is clearly increasing, according to Chris Gadomski, chief nuclear analyst for BloombergNEF.
That momentum will continue after US scientists for the first time were able to trigger a fusion reaction that generated more energy than it consumed. The crucial step forward shows that it may eventually be possible to build a commercial fusion power plant.
“This is putting fusion on the map,” Gadomski said.
There are still significant technological and engineering hurdles before this week’s achievement can be commercialized, and at least a dozen companies are pursuing fusion energy. Commonwealth Fusion Systems, TAE Technologies Inc. and Helion Energy Inc. were among the companies that attracted significant funding last year.
Other fusion companies that have landed significant backing include Marvel Fusion GmbH, General Fusion, Tokamak Energy Ltd. and Zap Energy Inc., according to BNEF.
The US is also increasing support for fusion technology, with a $50 million program to fund research, announced in September. Conventional nuclear power plants use fission, which involves splitting large atoms to generate power, and fusion replicates the reaction within stars when small atoms release energy when they fuse together.
The companies are using several different designs, and it’s still unclear which technology may eventually turn out to be the most viable.
“The fact that there’s a diversity of approaches is a sign of health in the industry,” Gadomski said.
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