Global fusion energy investment has reached unprecedented levels in the year since last July, drawing $2.64 billion from different stakeholders.
The investment, the highest since 2022, has surged in key players including the United States, the EU, Japan, Britain, and China.
The 53 fusion companies surveyed by the Washington-based Fusion Industry Association have witnessed a nearly five-fold increase, standing at nearly $977 billion.
This year’s investment has risen by an impressive 178% from last year’s more than 900 million.
However, the rise in investment is not enough to commercialize this industry.
“The acceleration of capital, even when the global economy has tightened, is a signal of maturing investor confidence, technological progress, and a rapidly coalescing supply chain,” said Andrew Holland, FIA’s CEO.
Fusion energy which fuels the sun and stars, is in the experimental stage on Earth. By harnessing the power of fusion, an enormous amount of clean energy could be emitted, producing no greenhouse gas and minimal amounts of radioactive waste.
Currently, the scientists are experimenting with various technologies like powerful lasers and giant magnets to initiate fusion reactions by forcing light atoms together.
Unfortunately, certain challenges hinder the accomplishment of fusion reactions at commercial level. These include reducing the amount of energy required to initiate a reaction, achieving continuous reaction, and devising the systems to transmit energy efficiently.
The investment boom that the world witnessed has come from the surge in power demands from artificial intelligence and data centres.
Moreover, Google has also struck a deal in June to buy power from a Commonwealth Fusion systems plant in Virginia which hopes to generate power by 2030.
Despite the funding rise, 83% respondents claimed the difficulties they faced while getting the investments.
Fusion companies said they need an additional $3 million to $12.5 billion to bring their first pilot plants online.
