As a nascent technology, nuclear fusion represents an early-stage investment opportunity. But how can investors enter this new and exciting energy market
?
Table of Contents:
What is nuclear fusion?
Nuclear fusion is a form of nuclear energy that the International Atomic Energy Association (IAEA) defines as “the process by which two light atomic nuclei combine to form a single, heavier nucleus, releasing enormous amounts of energy.” This is the same process that powers the sun and, in fact, makes life possible on Earth.
Today, fusion reactor concepts use a mixture of hydrogen deuterium and tritium atoms, both “abundant and easily accessible.” The first can be obtained from seawater, the second from lithium. “It is important to note that nuclear fusion, just like fission, does not emit carbon dioxide or other greenhouse gases into the atmosphere, so it could be a long-term source of low-carbon electricity from the second half of this century onward,” notes the IAEA
.
Private Nuclear Fusion Companies
Let’s take a look at the most funded and advanced companies developing nuclear fusion power plants, according to the Fusion Industry Association. Even if these companies are not publicly traded shares, accredited investors could participate in private equity fundraisers
.
Commonwealth Fusion Systems (CFS)
This spin-off of the Massachusetts Institute of Technology is focused on using high-temperature superconducting magnet technology to bring a commercial fusion plant to the market by the early 1930s.
TAE Technologies
The Californian company TAE Technologies is developing nuclear applications in life sciences, energy storage, electric mobility and fast charging. With 1.2 billion dollars in funding and key collaborators that include Google and the energy and defense company General Atomics, TAE is betting on the early 1930s for Da Vinci, its first prototype of a hydrogen-boron fusion plant, to provide electricity to
the grid.
Shine Technologies
The 2023 World Fusion Industry report estimates that Shine Technologies’ total funding is 700 million dollars.
Helion Energy
Supported by Sam Altman of OpenAI, Helion Energy claims to “build the world’s first fusion power plant to enable a future with unlimited clean electricity.” According to the Fusion Industry Association, the company has attracted 577 million dollars in funding. It is targeting 2028 to bring its pilot plant online and has signed a power purchase agreement with Microsoft to provide fusion electricity. Helion is working with Constellation Energy Group, an energy provider, to manage the future transmission
of electricity.
General Fusion
With 300 million dollars in funding, this Canadian company aims to bring its magnetized target fusion technology to the market with its first commercial fusion facility in the United Kingdom by the 1930s.
Publicly Listed Shares
While the market awaits pure nuclear fusion stocks, there are several publicly listed companies that have investments in private fusion technology companies.
Chevron (NYSE:CVX)
One of the world’s largest oil and gas companies, Chevron is investing in the transition to renewable energy. As part of this strategy, the company made investments in nuclear fusion companies, including $250 million in TAE Technologies and an undisclosed amount in Zap Energy
.
Alphabet (NASDAQ:GOOGL)
The third largest technology company in the world, Alphabet, has contributed funds and its expertise in machine learning to the emerging field of nuclear fusion. The tech giant has been working with TAE Technologies since 2014 and joined Chevron in 2022 with its investment of 250 million dollars
.
Cenovus Energy (TSX:CVE, NYSE:CVE)
The Canadian company Cenovus Energy is another oil and gas company working to diversify its business model into clean energy. The company has supported General Fusion since 2014, including an investment of 4 million dollars in 2021.
Eni (NYSE:E)
Eni, one of the world’s leading oil and gas companies, is also diversifying into renewable energy projects and nuclear fusion generation. An initial investor in Commonwealth Fusion Systems, Eni signed an agreement with the startup last year that will help accelerate its path to the commercialization and launch of a nuclear fusion power plant by the early 1930s
.
