Commonwealth Fusion Systems raises $863m to accelerate fusion energy commercialisation

Commonwealth Fusion Systems (CFS), a company focused on fusion energy development, has raised $863m in a Series B2 funding round.

This investment will bring CFS closer to achieving its goal of being the first company globally to commercialise fusion energy.

It will help complete its SPARC fusion demonstration machine and advance the development of its first ARC power plant in Virginia.

The latest funding round, which was oversubscribed, is the largest capital raise among deep tech and energy companies since CFS’ $1.8bn Series B round in 2021.

CFS now has close to $3bn in funding, approximately one-third of the total capital invested in private fusion companies globally.

Commonwealth Fusion Systems CEO and co-founder Bob Mumgaard said: “Investors recognise that CFS is making fusion power a reality. They see that we are executing and delivering on our objectives.

“This funding recognises CFS’ leadership role in developing a new technology that promises to be a reliable source of clean, almost limitless energy – and will enable investors to have the opportunity to capitalise on the birth of a new global industry.”

CFS’ investor base has expanded internationally, attracting a diverse group, from fundamental investors to industrial companies.

The round saw participation from a variety of financial entities including banks, hedge funds, pension funds, private equity firms, sovereign wealth funds and venture capitalists.

Notable new investors include Brevan Howard Macro Venture Fund, Counterpoint Global (Morgan Stanley) and Stanley Druckenmiller.

Additionally, a consortium of 12 Japanese companies, led by Mitsui & Co. and Mitsubishi, joined the investment round.

The consortium includes prominent companies such as the Development Bank of Japan, Fujikura, JERA and Kansai Electric Power.

These new stakeholders are joined by existing investors such as Breakthrough Energy Ventures and Google, which have increased their stakes in CFS.

CFS senior vice-president of corporate development Ally Yost said: “CFS offers investors the clearest path to bringing commercial fusion to the world – and an unprecedented opportunity to make a real impact as global demand for power accelerates with electrification and increased use of AI and data centres.

“Along with the promise of energy independence and security, fusion power will help to expand energy access, and with it, improve quality of life.”

CFS’ ARC power plant project, due to be built in Chesterfield County, Virginia, US, is set to be the world’s first grid-scale fusion power plant.

It is being developed through strategic partnerships with Dominion Energy and Google, which has agreed to purchase half of the plant’s output.