All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

Fusion energy developer Type One Energy this morning announced it's signed agreements with Commonwealth Fusion Systems and the Tennessee Valley Authority to bring its twisty stellarator design to life.

Why it matters: The deals mark important progress for Type One and a potential new source of revenue for Commonwealth Fusion, a frontrunner in developing the moonshot energy tech. 

Catch up fast: Fusion energy developers are pursuing a handful of designs to one day generate near-limitless, waste-free, and zero-carbon electricity.

Type One, based in Knoxville, Tenn., is focused on what's known as a stellarator, an intricate design that resembles a giant slinky — but, if assembled correctly, promises an easier path to operation.

Driving the news: Type One signed an agreement with the Tennessee Valley Authority to jointly develop plans for a potential 350 MW-equivalent fusion power plant. 

The stellarator plant, named Infinity Two, would come online as early as the 2030s, Type One and the TVA said in a statement. 

Flashback: Type One last year announced it would invest $223 million to build a prototype stellarator,  Project Infinity, at the TVA's retired coal-fired Bull Run Fossil Plant in eastern Tennessee.

The latest: The new deal expands on that agreement and calls for developing a local supply chain and workforce.

Separately: Type One signed an agreement to exclusively license high temperature superconducting (HTS) cable technology from Commonwealth Fusion.

Fusion energy systems use magnets to contain and sustain a fusion reaction. Commonwealth Fusion developed a method to make the magnets from coils of HTS cable. 

Between the lines: The licensing deal reflects how fusion energy startups are seeking ways to unlock revenue as they remain years from bringing their systems online.

Rival developer TAE, for example, has spun out a power management company and life sciences division, British startup Tokamak Energy plans to sell HTS magnets, and Shine sells neutrons for industrial imaging and equipment inspections. 

Follow the money: Commonwealth Fusion has raised $2 billion to date, per PitchBook, from investors including Breakthrough Energy Ventures, Khosla Ventures, Lowercarbon Capital, Google, John Doerr, and Marc Benioff's Time Ventures. 

Type One has reportedly raised $82.4 million from Breakthrough Energy Ventures, GD1 and Centaurus Capital, among others.

Type One inks fusion deals with Commonwealth, TVA

The startup is licensing CFS tech for a 350 MWe plant.

Illustration of an atom rising over a landscape like a sunrise 

<a class="gtmContentClick" data-vars-link-text="Fusion energy" data-vars-click-url="https://www.axios.com/pro/climate-deals/2024/08/12/nuclear-energy-fission-fusion-investment-annual-data" data-vars-content-id="62daf37b-2216-4f51-86ff-62ef4236d69b" data-vars-headline="Type One inks fusion deals with Commonwealth, TVA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2024/08/12/nuclear-energy-fission-fusion-investment-annual-data" target="_self">Fusion energy</a> developer <a class="gtmContentClick" data-vars-link-text="Type One Energy" data-vars-click-url="https://www.axios.com/pro/climate-deals/2024/07/30/type-one-seed-fusion" data-vars-content-id="62daf37b-2216-4f51-86ff-62ef4236d69b" data-vars-headline="Type One inks fusion deals with Commonwealth, TVA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2024/07/30/type-one-seed-fusion" target="_self">Type One Energy</a> this morning announced it&#x27;s signed agreements with <a class="gtmContentClick" data-vars-link-text="Commonwealth Fusion Systems" data-vars-click-url="https://link.axios.com/click/38566955.707/aHR0cHM6Ly93d3cucHJuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlcy9jb21tb253ZWFsdGgtZnVzaW9uLXN5c3RlbXMtYW5kLXR5cGUtb25lLWVuZXJneS1zaWduLWZ1c2lvbi1tYWduZXQtYWdyZWVtZW50LTMwMjM3MjgyOC5odG1sP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/649613baa2db4d6159778679B08dc01c9" data-vars-content-id="62daf37b-2216-4f51-86ff-62ef4236d69b" data-vars-headline="Type One inks fusion deals with Commonwealth, TVA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/38566955.707/aHR0cHM6Ly93d3cucHJuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlcy9jb21tb253ZWFsdGgtZnVzaW9uLXN5c3RlbXMtYW5kLXR5cGUtb25lLWVuZXJneS1zaWduLWZ1c2lvbi1tYWduZXQtYWdyZWVtZW50LTMwMjM3MjgyOC5odG1sP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/649613baa2db4d6159778679B08dc01c9" target="_self">Commonwealth Fusion Systems</a> and the <a class="gtmContentClick" data-vars-link-text="Tennessee Valley Authority" data-vars-click-url="https://www.businesswire.com/news/home/20250211717579/en/Type-One-Energy-and-TVA-Sign-Agreement-Focused-on-First-Fusion-Power-Plant-Project" data-vars-content-id="62daf37b-2216-4f51-86ff-62ef4236d69b" data-vars-headline="Type One inks fusion deals with Commonwealth, TVA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20250211717579/en/Type-One-Energy-and-TVA-Sign-Agreement-Focused-on-First-Fusion-Power-Plant-Project" target="_blank">Tennessee Valley Authority</a> to bring its twisty stellarator design to life.Why it matters: The deals mark important progress for Type One and a potential new source of revenue for Commonwealth Fusion, a frontrunner in developing the moonshot energy tech.

Type One inks fusion deals with Commonwealth, TVA

What to read next