Fusion energy company, Commonwealth Fusion Systems, secures an impressive $863 million investment to accelerate the transition of fusion power to the electricity grid.

In a significant step forward for the fusion energy sector, Commonwealth Fusion Systems (CFS) has raised $863 million in a Series B2 fundraising round. This round, which brings CFS' total funding to nearly $3 billion, has attracted a diverse group of investors, including newcomers and existing backers.

The round was led by a consortium of 12 Japanese companies, including JERA Co., Mitsui & Co., Mitsubishi Corporation, Kansai Electric Power, JGC Japan Corporation, Fujikura Ltd., Development Bank of Japan, Nippon Telegraph and Telephone Corporation (NTT), Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Mitsui O.S.K. Lines, and Mitsui Fudosan. The exact individual investment amounts by these Japanese companies were not specified, but the total size of the Series B2 funding round accounts for about one-third of all private investment in the global fusion sector.

Existing backers like Bill Gates-backed Breakthrough Energy Ventures, Google, Eni, Lowercarbon Capital, and others, also increased their stakes in the company. New investors such as Brevan Howard Macro Venture Fund, Morgan Stanley's Counterpoint Global, NVIDIA's venture capital arm NVentures, and the aforementioned Japanese consortium, have also joined the CFS investor roster.

CFS, which is collaborating with MIT's Plasma Science and Fusion Center to build SPARC, a demonstration machine using a "tokamak" design, aims to connect the first grid-scale fusion power plant to the grid in the early 2030s. SPARC is anticipated to be the precursor to CFS's first commercial plant, ARC.

Fusion energy, which is the process of combining two atoms to form a single atom to release energy, has the potential to produce power from hydrogen without producing carbon emissions associated with fossil-fuel based power. This makes it a highly attractive option for addressing climate change and meeting global energy demands.

Bob Mumgaard, CEO and Co-Founder of CFS, said 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 stated that this funding recognizes CFS' leadership role in developing a new technology that promises to be a reliable source of clean, almost limitless energy, and will enable investors to have the opportunity to capitalize on the birth of a new global industry.

In a recent agreement between CFS and Google, Google has agreed to purchase half the plant's output, marking the largest-ever direct corporate offtake agreement for fusion energy. This agreement also includes an investment by Google into CFS.

Carmichael Roberts, Managing Partner at Breakthrough Energy Ventures, stated that achieving commercial, affordable fusion power would be a transformative milestone, and CFS is advancing fusion at a pace and scale that could make this a reality. He also mentioned that CFS' work provides a unique opportunity to shape the energy landscape, especially as AI and data centers are driving unprecedented demand.

The funds will be used to complete CFS's fusion demonstration machine under construction in Massachusetts and continue development on its first grid-scale fusion power plant in Virginia. With this latest round of funding, CFS is well-positioned to continue its mission of making fusion power a reality.