A company named Helion Energy received the biggest ever venture capital (VC) rise in the rapidly growing nuclear fusion industry. A company raised $500 million in a round of funding led by Sam Altman.
This is important because Altman was the president and former director of Y Combinator, the world's most extensive and most valuable early stages accelerator.
This round of funding was unique because of the additional $1.7 billion in investment tied to project milestones. This means that Helion Energy will receive the funds once it has met its milestones in developing its nuclear Fusion reactor.
Those not in the know about nuclear fusion: it is taking two separate nuclei and joining them to create a different nucleus. It generates a massive volume of electricity. It is also 100% clean. Contrary to nuclear fission, the varieties of nuclear fusion produce very little, if any, radioactive waste.
Altman believes that nuclear fusion technology could be the next generation of energy. It is the only sustainable energy source that produces enough energy to power the electrical grids with clean, pure electricity that isn't damaging the environment.
Helion Energy concentrates on developing compact nuclear reactors that can be placed inside the shipping container. The reactors can be loaded on semi-trucks and then driven to any location. This is an exciting idea. It can lead to an efficient, decentralized power grid.
The best part is that Helion Energy has demonstrated before that its reactor can produce plasma with temperatures of 100,000,000 degrees. This is significantly more hot than the temperature of the inside of the Sun. Naturally, it generates an abundance of heat.
The company's unique method is to use induction (creating electricity through varying magnetic fields) to produce electricity. This way, it avoids the need that use water to create steam, which is then converted into electricity.
Based on its state, Helion Energy believes that it could demonstrate a nuclear reactor capable of producing industrial-scale power by 2024 - This is just 24 to 30 months away.
And the company is adopting the Silicon Valley approach with its business scheme. The company is planning to install these reactors at data centers. This is a very sensible approach.
It's normal to hear people grumbling about the amount of energy is needed to run the bitcoin blockchain. However, there aren't any complaints about the power required to power the data centers, which process all Internet traffic and the calls made to phones.
Data centers worldwide need more energy than the computational power required to run the bitcoin blockchain. In my opinion, blockchain companies are more proactive in working in the direction of using clean energy for their networks.
This is why Helion Energy intends to locate its fusion reactors close to its data centers. This is a sensible business strategy with a clearly defined market that needs 24/7 clean energy and is continuously available.
A fusion reactor to be "Plugging in" near a data center could transform an entire facility to 100% renewable energy within 24 hours. It will be well-received and will set Helion Energy up for quick adoption.
This is one company to watch over the next few years. It will be very transformational if Helion Energy can meet its milestone goals. So, let's watch this exciting company's story unfold for our future investment entry.