Nuclear Fusion Deals – Based on reality or a dream?

Last week, Italian energy giant ENI announced the purchase of $1 biliion (USD) worth of electricity from Commonwealth Fusion Systems (CFS), a US-based energy generator that is described as the world’s largest and leading commercial fusion energy company.[i]  It has been backed by Bill Gates through his technology fund Breakthrough Energy Ventures. CFS plans to begin construction of its Arc facility in 2027–28, and is aiming to have electricity flowing to the grid in the early 2030s.

Earlier this year Google also entered a commercial agreement with CFS for fusion energy[ii]. Both deals are considered to be the first commercial fusion-power deals globally. But do they signal the possible dawn of a new era in energy, with a technology long heralded as the ultimate solution to clean, abundant power?

While the latest ENI announcement offers hope to those who view fusion as the golden key to decarbonisation, it also echoes decades of similar promises that have hailed “breakthroughs” in nuclear fusion, only to falter when it came to delivering practical, grid-ready power within the promised timelines and budgets. So how close is nuclear fusion to being not just proven, but scalable for global energy supply and commercial, and what projects and developments around the world are shaping its future?

What is nuclear fusion?

Nuclear fusion is the process of combining two light atomic nuclei, like hydrogen, to form a heavier nucleus, releasing a huge amount of energy. It’s the same reaction that powers the sun, creating vast energy from a small amount of fuel. Unlike nuclear fission, which splits heavy atoms and produces long-lived radioactive waste, fusion produces very little waste and uses fuels that are widely available, like deuterium from seawater.

In short, fusion could provide almost limitless clean energy, but replicating this process on Earth requires overcoming extremely complex engineering challenges, including plasma containment, heat management, and achieving sustained net energy gain.

What current projects are showing promise?

Fusion remains largely experimental, but progress has accelerated, particularly in the private sector. Commonwealth Fusion Systems, a spin-off from MIT (the Massachusetts Institute of Technology), is advancing its SPARC[iii] and Arc projects, aiming to demonstrate net energy gain and eventually supply electricity to the grid. CEO Bob Mumgaard told Energy News Bulletin, “With the ARC plant, we aim to show that fusion can not only work in principle but work commercially.” CFS aims to deliver 400 megawatts of clean electricity by the early 2030s[iv]. TAE Technologies in California has achieved a significant milestone by producing stable plasma at temperatures exceeding 70 million degrees Celsius.[v] Helion Energy's Polaris reactor is designed to generate electricity directly from fusion reactions, with plans to connect a fusion plant to Microsoft's data centres by 2028.[vi]

In Europe, ITER in France[vii] is the largest experimental fusion facility in the world, designed to produce sustained plasma confinement at a scale that will inform the engineering of future commercial reactors. This project had promised to be generating energy by 2020, however cost overruns, Covid, corrosion of key parts, last-minute redesigns and confrontations with nuclear safety officials triggered delays that mean Iter is not going to be producing energy until 2039.[viii]

China, South Korea, and Japan are all pushing ahead with fusion research in different ways. China’s EAST reactor has set records by running at extreme heat. In January, it reached a major milestone by operating steadily for 1,066 seconds, almost 18 minutes.[ix] South Korea’s K-STAR project is testing how long it can keep its system stable, with the reactor recording a plasma operation with a temperature of 100 million degrees Celsius for 48 seconds in April of 2024, beating the previous record by 18 seconds.[x] Japan’s JT-60SA project is exploring new designs with advanced technology, with experiments set to take place in 2026[xi]. Governments are focusing on large projects that test engineering and encourage global cooperation, while private companies are experimenting with faster, more flexible designs.

The fusion race

The United States continues its fusion efforts through national labs and private companies such as Commonwealth Fusion Systems, developing the ARC reactor, and TAE Technologies, pursuing alternative designs. Federal funding has been uneven, and the 2025 election of Donald Trump, who favours fossil fuels like oil and coal, introduces uncertainty around long-term government support. Private companies are driving much of the progress, but without a coordinated national strategy, the U.S. program faces unpredictability.

China has made significant, well-funded strides in fusion energy. China has deployed at least $6.5 billion and upwards of $10-13 billion since 2023 towards fusion facilities, state-backed companies, and research.[xii] The EAST reactor recently maintained high-temperature plasma for nearly 18 minutes, and multiple other experimental reactors are under construction. China’s approach is consistent and long-term, supported by government priorities and international collaboration.

What concerns are there?

Despite recent progress, fusion remains a high-risk technology with multiple unresolved challenges. Achieving sustained net energy gain over long periods is still unproven, and reactor materials must withstand extreme temperatures, intense neutron flux, and constant thermal cycling without degrading. Engineering solutions for plasma confinement and heat extraction at commercial scales remain under development, and untested reactor components could limit operational reliability.

Economic viability is also uncertain. The cost of building and operating fusion reactors is substantial, with early projects like ITER expected to cost tens of billions of dollars, and private-sector designs such as Arc or Helion still facing high capital costs. Fusion will ultimately need to compete with rapidly expanding renewable energy sources, such as solar and wind, which benefit from falling costs, established supply chains, and mature regulatory frameworks.

The sector’s history of missed deadlines and cost overruns reinforces the need for caution, even as headline-making agreements, such as ENI’s $1 billion power purchase from CFS, generate optimism. Analysts note that although fusion is entering a more promising phase, translating experimental breakthroughs into commercially viable, grid-connected power will require sustained investment, patient governance, and rigorous risk management over the coming decades.

Conclusion

Fusion appears to be entering a more promising phase, with experimental breakthroughs and private-sector investment generating optimism. However, translating these advances into commercially viable, grid-connected power will require sustained investment, careful governance, and patient risk management. Cost will remain a major challenge for the technology and the path to practical fusion remains long and complex, demanding that stakeholders balance ambition with caution over the coming decades.

[i] https://cfs.energy/ 

[ii] Google Signs Deal to Buy Fusion Energy From Bill Gates-Backed Nuclear Startup - WSJ

[iii] https://cfs.energy/technology/sparc 

[iv] https://news.mit.edu/2024/commonwealth-fusion-systems-unveils-worlds-first-fusion-power-plant-1217

[v] https://www.cleanenergy-platform.com/insight/inside-taes-2025-plasma-breakthroughand-how-it-changed-fusions-trajectory? 

[vi] https://www.reuters.com/business/energy/helion-energy-starts-construction-nuclear-fusion-plant-power-microsoft-data-2025-07-30 

[vii] https://www.iter.org/few-lines 

[viii] https://www.theguardian.com/technology/article/2024/aug/03/is-the-dream-of-nuclear-fusion-dead-why-the-international-experimental-reactor-is-in-big-trouble 

[ix] https://phys.org/news/2025-01-chinese-artificial-sun-fusion-power.html 

[x] https://www.euronews.com/next/2024/04/04/koreas-artificial-sun-achieves-a-record-48-seconds-at-100-million-degrees-why-does-it-matt 

[xi] https://www.jt60sa.org/wp/

[xii] https://docs.house.gov/meetings/SY/SY20/20250918/118606/HHRG-119-SY20-Wstate-ReganW-20250918.pdf