On Wednesday, Helion Energy, a privately held nuclear fusion company based in the US, announced that it would provide electricity to Microsoft in approximately five years. This is the first-ever agreement for the commercial use of fusion energy, the same power source that fuels the sun but has been challenging to replicate on Earth.
There are currently over 30 companies and government laboratories racing to develop fusion power as it has the potential to reduce greenhouse gas emissions and help mitigate climate change significantly. Unlike fission reactors used today, which produce radioactive waste that remains hazardous for a long time, fusion energy has the potential to generate power without creating such waste.
Fusion energy is created when two light atoms, such as hydrogen, are heated to extreme temperatures, causing them to fuse and form one heavier atom, thus releasing large amounts of energy. However, achieving net energy gain from fusion reactions on Earth has been challenging as these reactions consume more energy than they produce. Despite this, private companies have invested around $5 billion in funding to achieve this goal.
Helion Energy, a nuclear fusion company based in Washington state, has announced plans to build a fusion plant that will generate at least 50 megawatts of electricity after a one-year ramp-up period. The plant is expected to be operational by 2028. One megawatt of electricity can power about 1,000 homes on an average day.
Helion Energy’s Plans for Fusion Power Generation and Expansion
David Kirtley, Helion Energy’s founder, and CEO, said in an interview that achieving 50 megawatts of power generation is a significant milestone for commercial-scale fusion. The company plans to use the revenue generated from the project to develop additional power plants and expand the use of fusion energy on the grid both within the United States and internationally.
Helion Energy’s upcoming seventh-generation machine, Polaris, will come online next year. According to David Kirtley, Helion’s CEO, it will demonstrate electricity generation using a combination of laser and magnet technologies to achieve fusion. Helion reached a significant milestone in 2021 by becoming the first private company to attain 100 million degrees Celsius (180 million degrees Fahrenheit), and the optimal temperature for fusion is about twice as high as that. While other fusion companies focus on tritium, a rare hydrogen isotope, to fuel their reactions, Helion plans to use Helium 3, a rare type of gas used in quantum computing.
Helion has raised over $570 million in private capital, with Sam Altman, CEO of OpenAI, contributing $375 million in 2021. In a news release, Brad Smith, Vice Chair and President at Microsoft stated that Helion’s work aligns with Microsoft’s long-term clean energy goals and will accelerate the development of a new, efficient method for bringing more clean energy to the grid faster.
Microsoft partners with Helion Energy for fusion-generated electricity
The details of the power purchase agreement between Microsoft and Helion have yet to be disclosed, including the financial terms and timing and which Microsoft facilities will receive fusion-generated electricity. According to Kimberly Budil, the head of Lawrence Livermore National Laboratory, which conducts fusion experiments, several decades of research and investment may be required before scientists can construct a power plant.
Helion still needs approvals from the Nuclear Regulatory Commission (NRC) for the design, construction, and local permits. The fusion industry welcomed the NRC’s decision to separate fusion regulation from fission regulation last month, which is expected to shorten the license approval process.
Andrew Holland, the head of the Fusion Industry Association, believes that the power purchase contract likely included clauses regarding the delivery timing of electricity. He also noted that the deal indicates a growing trust between fusion companies and potential customers.
Holland claimed in an interview, “The business world is starting to understand that fusion is coming and perhaps sooner than a lot of people thought. It’s a vote of confidence that Helion is on its way, as are other companies building their proof-of-concept machines now.”
