Eni inks $1bn US power deal with startup

Italian energy company Eni has announced a significant power purchase agreement (PPA) exceeding $1 billion with Commonwealth Fusion Systems (CFS). The agreement involves the procurement of energy from CFS’s inaugural commercial fusion plant, anticipated to commence operations in Chesterfield County, Virginia, by the early 2030s.

Fusion energy, which involves fusing two atoms into one to release energy, is often hailed as the “Holy Grail” of clean energy due to its potential to harness power from hydrogen—the universe’s most abundant element—without the carbon emissions linked to fossil fuels or the high levels of radioactivity associated with nuclear fission. However, achieving large-scale fusion energy generation has proven challenging due to the need for extremely high temperatures and pressure.

CFS, a company spun out of MIT in 2018 and based in Massachusetts, is striving to develop the world’s first net-energy positive fusion device, meaning it will produce more energy than it consumes. The company is collaborating with MIT’s Plasma Science and Fusion Center to construct SPARC, a precursor to its first commercial plant, ARC, which is expected to be the world’s first grid-scale fusion power plant.

CFS recently secured over $860 million in a Series B2 fundraising round to further the commercialisation of its fusion technology. This new PPA with Eni follows a prior offtake agreement [recently signed with Google](https://www.esgtoday.com/google-signs-largest-ever-corporate-fusion-energy-purchase-deal/).

Bob Mumgaard, Co-founder and CEO of CFS, stated: “The agreement with Eni demonstrates the value of fusion energy on the grid. It is a big vote of confidence to have Eni, who has contributed to our execution since the beginning, buy the power we intend to make in Virginia. Our fusion power attracts diverse customers across the world—from hyperscalers to traditional energy leaders—because of the promise of clean, almost limitless energy.”

Eni was an early investor in CFS in 2018 and increased its investment during CFS’s recent financing round. In 2023, Eni and CFS signed a Collaboration Framework Agreement to expedite fusion energy development. This collaboration encompasses various areas, including operational and technological support, project execution through the sharing of methodologies learned from the energy industry, and relationships with stakeholders.

Eni CEO Claudio Descalzi remarked: “Eni has been strengthening its collaboration with CFS through its technological know-how since it first invested in the company in 2018. As energy demand grows, Eni supports the development of fusion power as a new energy paradigm capable of producing clean, safe, and virtually inexhaustible energy. This international partnership confirms our commitment to making fusion energy a reality, promoting its industrialisation for a more sustainable energy future.”