Fusion projects continue to receive significant venture capital. Commonwealth Fusion Systems raised $1.8 billion in its most recent investment round of venture capital.
You'll remember that we posted about Helion Energy a few weeks back in this section. The company has raised $500 million in financing, with the possibility of securing an additional $1.7 billion if it manages to achieve specific targets.
The raise was record-breaking for the business, and here we are with Commonwealth Fusion Systems raising a significant amount likewise.
To remind our dear readers that nuclear fusion is the process of using two nuclei that are separate and combining them into the new nucleus. It produces a massive quantity of pure electricity with virtually no radioactive waste.
It is also important not to confuse nuclear fission, which involves splitting atoms with current technology. The fusion technology operates by heating plasma to astonish temperatures and then to use powerful magnets to control and manage the heat.
Commonwealth Fusion Systems' nuclear technology strategy uses a tokamak reactor. The company was spun out of the Massachusetts Institute of Technology in 2018 and employs a highly compact doughnut-shaped design to produce the circular plasma reaction. The early concept for the invention is in the illustration below.
Source: Commonwealth Fusion Systems
The design of the tokamak reactor and the recent rise have created Commonwealth Fusion Systems, one of the most prominent players in the industry.
The $1.8 billion in funding will help the company design the prototype. With this prototype, they foresee building an energy-efficient net positive reactor. Net positive energy means that the reactor will generate more power than is needed to operate the unit.
And Commonwealth Fusion Systems is expected to demonstrate this in 2025 - which is three years out. Amazing.
This technology offers enormous benefits, so global that this latest round of funding attracted notable who's who renown names of the most prominent investors.
It's not surprising that the company is getting so much interest. A clean, unlimited energy source would be revolutionary and the most effective way to move away from energy production based on carbon. The company that develops this technology will soon be one of the top and valuable firms in the world.
Contrary to the enormous International Thermonuclear Experimental Reactor (ITER) development in Europe, which also employs a tokamak design, Commonwealth's method allowed Fusion reactors to be constructed at less cost and smaller size.
A small fusion device can be placed in the trailer of an 18-wheeler or a room-size area. This could allow several models to be powered by an uncentralized power grid.
It's exciting to see how much capital is coming into space, as the technology for fusion has become no more dream or even a fantasy. The fact that venture capitalists are beginning to write extensive checks suggests a clearly defined pathway in the next few years to commercially viable tokamak reactors that can produce net electricity.
There have been many doubts regarding nuclear fusion over the last few years. Still, I am more confident than ever we will see significant technological advances in tokamak reactors but commercialization process of the technology over the coming years.
I believe that what we are seeing today is merely the beginning of what's to be seen in 2022 and beyond in terms of capital and attention - Invest wisely.
This article was printed from TradingSig.com