The vision of abundant clean energy power by fusion has attracted billions of dollars from climate investors, governments and corporations. Mimicking the sun, however, has proved notoriously difficult; commercial viability remains perpetually years away. Everett, Washington-based Helion Energy’s ambitious contract with Microsoft to deliver fusion power for data centers by 2028 signaled fusion energy may be within reach.
Zap Energy, based in Seattle, has raised another $130 million, bringing its total raised to roughly $330 million from big-named climate tech investors, including Energy Impact Partners, Lowercarbon Capital and Breakthrough Energy Ventures. Zap is building a compact “Z-pinch” fusion energy system that confines plasma without expensive magnets.
University of Washington profs Uri Shumlak and Brian Nelson launched Zap in 2017 to commercial technology developed with researchers at the Lawrence Livermore National Laboratory, which achieved net energy gain in a fusion reaction two years ago. Zap and other fusion startups have yet to match that milestone.
Seed-stage fusion
It’s a sign of fusion’s capital-intensivity that Middleton, Wisconsin-based Type One Energy’s $82.4 million raise is considered a seed round. Investors include Breakthrough Energy (again), Centaurus Capital, New Zealand venture investor GD1 and other funds from Australia.
Type One is looking to build a fusion power plant with an owner-operator for commercial fusion production by 2030. Type One’s stellarator fusion energy technology “offers the opportunity to directly develop and deploy a fusion pilot power plant without the need to resolve any more fundamental science or engineering challenges,” said BEV’s Carmichael Roberts.
In New Zealand, OpenStar Technologies raised $6.2 million in a seed round backed by Outset and Icehouse Ventures and other investors. More than three dozen fusion startups have raised more than $7 billion over three decades – including nearly $1 billion in the past year, according to the Fusion Industry Association.
