July 2, 2023
The Emerging Market of Fusion Energy
Nuclear fusion energy – if reliably harnessed – promises clean, safe and abundant power. This kind of breakthrough could reduce environmental impacts, enhance energy security and drive technological advancements. So what do you need to know about the growing fusion energy market that supports the race toward endless energy? Here’s your first introduction to the industry that could just change everything.
In the quest for fusion energy, the industrial landscape has witnessed a remarkable shift. While the first 50 or 60 years of fusion research was primarily led by governmental institutions, the last two decades have seen a surge in private initiatives. Today, the fusion energy industry is experiencing a growing market, with approximately 40 active companies compared to only a handful in the past century.
In recent years, the number of private companies operating in the fusion energy industry has surged, signaling the increasing interest and investment in this field. In fact, since 2010, the number of active companies has more than doubled. It is expected that as long as definitive breakthroughs elude us, even more private initiatives will emerge, each striving to showcase its unique approach as the path to a fusion solution.
Although each company in the field has its unique approach to solving the fusion challenge, their developments can be broadly categorized into two primary approaches: Magnetic Confinement Fusion (MCF) and Inertial Confinement Fusion (ICF). MCF uses magnetic fields to confine and heat a plasma to the required temperature and pressure for a long enough time for fusion reactions to occur. ICF, on the other hand, relies on the rapid compression and heating of a small target, containing fusion fuel, typically through high-energy lasers or particle beams, to achieve the conditions necessary for fusion reactions to take place. Of course, there are hybrid approaches that combine principles from both, as well as fusion energy solutions that do not align with any established approach.
One promising private company operating in the emerging fusion market is NT Tao. The Israeli company, which was founded in 2019 and recently was revealed to the general public, has developed a compact fusion solution, using its own version of the magnetic fusion confinement approach. The company participated in Drive TLV’s FastLane commercialization program in 2022 (batch 7) and received funding from Drive TLV’s sister company, Next Gear Ventures, as part of its $22M fundraising round A in 2023. Other investors in this round were DK Innovation, the venture capital of the energy company Delek US, Honda Motors, OurCrowd and the Grantham Foundation.
As mentioned above, private fusion companies have managed to raise a total amount of about $5B over the years, with the bulk in only the last 3 or 4 years. The investors in these companies are diverse and range from the largest VC companies and smaller, energy-focused VCs, to academic institutions, energy and technology corporations, and even private investors. Companies such as Commonwealth Fusion Systems (CFS) and TAE Technologies are the most notable with total funding of $2B and $1.2B respectively. Others, like Helion Energy, General Fusion, and Tokamak Energy are also major players with funding of hundreds of million dollars each.
It is clear that the private fusion industry cannot be ignored. The crowded market, the high value investments and the recognition and cooperation from a variety of stakeholders indicates that the private industry will continue to be one of the main engines for progress towards a breakthrough in the field. As private initiatives continue to drive research and investment, the fusion energy market will expand rapidly. Its future will be shaped by the collective efforts of these emerging players, each striving to unlock the potential of fusion power and propel us toward a sustainable energy future.
Nuclear fusion energy – if reliably harnessed – promises clean, safe and abundant power. This kind of breakthrough could reduce environmental impacts, enhance energy security and drive technological advancements. So what do you need to know about the growing fusion energy market that supports the race toward endless energy? Here’s your first introduction to the industry that could just change everything.
In the quest for fusion energy, the industrial landscape has witnessed a remarkable shift. While the first 50 or 60 years of fusion research was primarily led by governmental institutions, the last two decades have seen a surge in private initiatives. Today, the fusion energy industry is experiencing a growing market, with approximately 40 active companies compared to only a handful in the past century.
In recent years, the number of private companies operating in the fusion energy industry has surged, signaling the increasing interest and investment in this field. In fact, since 2010, the number of active companies has more than doubled. It is expected that as long as definitive breakthroughs elude us, even more private initiatives will emerge, each striving to showcase its unique approach as the path to a fusion solution.
Although each company in the field has its unique approach to solving the fusion challenge, their developments can be broadly categorized into two primary approaches: Magnetic Confinement Fusion (MCF) and Inertial Confinement Fusion (ICF). MCF uses magnetic fields to confine and heat a plasma to the required temperature and pressure for a long enough time for fusion reactions to occur. ICF, on the other hand, relies on the rapid compression and heating of a small target, containing fusion fuel, typically through high-energy lasers or particle beams, to achieve the conditions necessary for fusion reactions to take place. Of course, there are hybrid approaches that combine principles from both, as well as fusion energy solutions that do not align with any established approach.
One promising private company operating in the emerging fusion market is NT Tao. The Israeli company, which was founded in 2019 and recently was revealed to the general public, has developed a compact fusion solution, using its own version of the magnetic fusion confinement approach. The company participated in Drive TLV’s FastLane commercialization program in 2022 (batch 7) and received funding from Drive TLV’s sister company, Next Gear Ventures, as part of its $22M fundraising round A in 2023. Other investors in this round were DK Innovation, the venture capital of the energy company Delek US, Honda Motors, OurCrowd and the Grantham Foundation.
As mentioned above, private fusion companies have managed to raise a total amount of about $5B over the years, with the bulk in only the last 3 or 4 years. The investors in these companies are diverse and range from the largest VC companies and smaller, energy-focused VCs, to academic institutions, energy and technology corporations, and even private investors. Companies such as Commonwealth Fusion Systems (CFS) and TAE Technologies are the most notable with total funding of $2B and $1.2B respectively. Others, like Helion Energy, General Fusion, and Tokamak Energy are also major players with funding of hundreds of million dollars each.
It is clear that the private fusion industry cannot be ignored. The crowded market, the high value investments and the recognition and cooperation from a variety of stakeholders indicates that the private industry will continue to be one of the main engines for progress towards a breakthrough in the field. As private initiatives continue to drive research and investment, the fusion energy market will expand rapidly. Its future will be shaped by the collective efforts of these emerging players, each striving to unlock the potential of fusion power and propel us toward a sustainable energy future.
