Fusion energy slowly moves to the forefront, a welcome change in a crazy week of trade wars and gloomy headlines

In a week when financial markets were rattled by President Trump’s tariff saga, marked by announcements of global import duties, an outright trade war, and a resulting market crash, it was refreshing to spend Wednesday afternoon and evening following the Fusion Virtual Mini-Conference, hosted by investment bank Jefferies. During this event, six promising companies and organizations showcased their progress in the race for the ultimate energy source: nuclear fusion. The mood was optimistic, and the message was clear: “Fusion is no longer a perpetual promise, it is a near-term reality”. Here are my main takeaways.

What is fusion energy?

Very simply put: fusion happens when tiny bits of hydrogen stick together to form helium. This releases a huge amount of energy, just like in the sun, and scientists want to use that energy here on earth to make clean electricity. Fusion is actually the reverse of traditional nuclear energy, or fission. Instead of splitting heavy atomic nuclei, fusion combines light ones, such as deuterium and tritium, two types of hydrogen, into helium, releasing enormous energy in the process. It’s the reaction that powers the sun and stars, and it requires extremely high temperatures (millions of degrees) and pressure. The challenge is that we don’t yet have a way to do this in a stable, efficient, and affordable way on earth, but researchers are making steady progress. If we can recreate these conditions on earth, fusion could become a clean, safe, and virtually limitless source of energy, possibly the most sustainable one humanity has ever known.

Why fusion is so appealing:

Fusion is one of the most promising energy sources for the future because it offers the potential for clean, safe, and virtually limitless power. By fusing light elements like hydrogen into helium, fusion releases an enormous amount of energy without producing greenhouse gases or long-lived radioactive waste. Unlike fossil fuels, it doesn't pollute the air or contribute to climate change, and unlike nuclear fission, it carries no risk of meltdown. And importantly, certainly in today’s crazy world of geopolitics and de-globalisation, its fuel sources, such as deuterium from seawater and lithium for tritium production, are widely available, offering a high degree of energy security and independence.

 

 

Different fusion approaches

To achieve nuclear fusion on earth, scientists must recreate the extreme conditions of the sun, temperatures of around 150 million degrees Celsius and immense pressure, to force light atomic nuclei to fuse. At these temperatures, matter becomes plasma, which must be carefully contained to avoid damaging reactor walls. There are several ways to do this:

• Magnetic confinement: Plasma is contained for a long time in a powerful magnetic field. Examples include tokamaks (CFS, Tokamak Energy) and stellarators (Type One Energy).
• Inertial confinement: A tiny fuel pellet is compressed within a fraction of a second using powerful lasers or electromagnetic pulses. This is First Light Fusion’s method.
• Hybrid forms: Magneto-inertial fusion combines both principles. General Fusion is developing such an approach.

Keynote speakers and their messages

Fusion Industry Association (FIA) - Andrew Holland, CEO

The Fusion Industry Association (FIA) represents the beating heart of the private global fusion sector. Founded in 2021 as an independent advocacy group, it has grown into a key point of contact for governments, regulators, and investors. CEO Andrew Holland presented the FIA as more than a traditional lobbying group, it aims to build an entire industrial fusion ecosystem, from basic research to fully operational power plants.

Holland delivered a powerful message: fusion is no longer a hypothetical science experiment; it’s an emerging industry. According to the FIA, 89% of private fusion firms expect to deliver commercial power in the 2030s. The transition from research to industry is well underway with over $8 billion in private investment, more than 10,000 employees, and 45+ fusion companies worldwide.

FIA is building a supplier network of engineering firms, legal advisers, and utilities, crucial for fusion, which demands a completely new chain of materials, systems, regulation, and financing. Holland made a strong case for global collaboration, even in an era of rising protectionism. He emphasized fusion’s global nature: materials from Germany and Japan, software from the U.S., knowledge hubs across the world. “Fusion has always been a global effort. Let’s not sabotage that.”

 

 

Holland also spoke about momentum. While public programs dominated fusion for decades, private firms are now leading the charge. They move faster, test more boldly, and attract venture capital. The FIA’s annual survey shows that 89% of members expect commercial fusion by or before the 2030s. Holland presented a roadmap showing how dozens of companies are progressing toward commercial viability, moving through three development phases:

1. Scientific validation

Focused on lab experiments, ignition breakthroughs, and a deeper understanding of fusion tech. Many firms have achieved key milestones here, driven by advances in magnets, computing, and materials science.

1. Engineering demonstration

Companies in this phase are building prototype reactors or pre-pilot plants, aiming to achieve net energy output (Q > 1). Approaches diverge here: tokamaks, stellarators, laser fusion, field-reversed configurations, and more. Examples include SPARC (CFS), Infinity One (Type One Energy), and ST40 (Tokamak Energy).

1. Commercial scale-up

An increasing number of firms are nearing contract-ready designs and partnerships with utilities. The first commercial plants are expected to break ground in the early 2030s, with electrons on the grid before 2035. Partnerships with energy providers like TVA and Dominion Energy signal the sector’s maturity.

Holland ended on an upbeat note. Like Moore’s Law in semiconductors, fusion technology is accelerating. “Fusion is no longer a punchline,” he said. “It’s an industry.” And: “Fusion is inevitable. It’s the ultimate energy solution, and we’re finally building it.”

Commonwealth Fusion Systems (CFS) - Rick Needham, CCO

CFS is among the best-funded private fusion firms globally. It’s developing a compact tokamak reactor using high-temperature superconducting (HTS) tape to build smaller, stronger, and cheaper magnets. CFS announced a partnership with Dominion Energy to build the world’s first commercial fusion power plant in Virginia. Goal: to deliver clean, dispatchable baseload power to the grid by 2030.

 

Tokamak Energy - Dr. Michael Ginsberg, President

Tokamak Energy also focuses on compact HTS tokamaks with a scalable, modular approach. A collaboration with Sumitomo Corporation gives them access to Japan’s industrial strength and technological expertise. The firm is positioning itself as a pioneer in both R&D and commercialization.

Type One Energy - Charlie Baynes-Reid, CFO

Type One is working on stellarators, a type of magnetic confinement device known for inherent stability. They’re building a prototype at a decommissioned coal plant site in Tennessee, in partnership with TVA. Target: a commercial reactor design by 2029. They use HTS technology from CFS (the "Viper" program) and engineers who worked on Wendelstein 7-X. Their approach is pragmatic: get electrons to the grid quickly, with minimal technical risk.

First Light Fusion - Bart Markus, Chairman

A University of Oxford spin-out, First Light is developing inertial fusion with a unique “fuel amplifier” that significantly boosts energy efficiency. They achieved fusion using a simple gas gun, long thought impossible. The company partners with Sandia National Labs and has access to the powerful Z-machine, setting pressure records. First Light sees itself as a supplier of high-efficiency fuel systems for other fusion players.

General Fusion - Megan Wilson, CSO

General Fusion takes a magneto-inertial approach, compressing plasma in a spherical chamber using pistons. Their prototype is under construction in Canada. Wilson highlighted the simplicity and scalability of their design, and its lower potential cost compared to traditional tokamaks.

Lawrence Livermore National Laboratory (LLNL) - Dr. Omar A. Hurricane, Chief Scientist

Dr. Hurricane represented LLNL, the U.S. government lab that stunned the world in 2022 with the first-ever net energy gain from laser fusion at the National Ignition Facility. While proud, he remained realistic: “The physics works. Now we have to engineer it.” He explained that only a fraction of input energy currently reaches the fuel. Still, progress is real: new records, better simulations, and a thriving scientific ecosystem. LLNL plays a broader role too, validating innovations, standardizing methods, and ensuring safety. While laser fusion is still far from commercial, its scientific and industrial spinoffs are significant, from material research to medical applications.

A couple of notable absentees: ITER and China’s ITER, CFETR

One notable absence from the conference was ITER, the world’s largest and most ambitious fusion energy project. Based in southern France, ITER is a multinational collaboration involving 35 countries, including the EU, the US, China, and Japan. Its aim is to demonstrate the scientific and technological feasibility of fusion power on a large scale using a tokamak reactor. Unlike the companies present at the event, which are mostly private and commercially driven, ITER is a publicly funded research project focused on long-term, experimental progress rather than near-term energy production.

China is developing its own large-scale fusion project called CFETR (China Fusion Engineering Test Reactor). Positioned as the next step after ITER, CFETR aims to bridge the gap between experimental fusion and commercial fusion power plants. It will use a tokamak design similar to ITER, but with a stronger focus on continuous operation and electricity generation. The project is part of China’s broader strategy to become a global leader in fusion energy and is expected to play a key role in the country’s long-term energy transition.

Which raises the question: is fusion still a collaborative scientific endeavor or are we already witnessing the start of a global race for fusion dominance?

Fusion and financial markets: promising, but not yet investable

Fusion captures the imagination. It combines ambitious science with potentially groundbreaking energy security and climate benefits. The Jefferies conference made clear: the sector is moving thanks to private investment, deep academic roots, and partnerships with utilities and suppliers. In recent years, private investors, including venture capital funds and billionaires like Bill Gates and Jeff Bezos, have poured billions of dollars into fusion startups. Companies such as Commonwealth Fusion Systems (CFS), Helion Energy, and General Fusion have collectively raised more than $7 billion in private funding.

Not all billionaires are convinced that nuclear fusion is the way forward. Elon Musk, for instance, recently expressed his skepticism by saying: “I think we already have a giant fusion reactor in the sky, that’s called the sun, that shows up every day. It converts about four and a half million tons of mass to energy every second and requires no maintenance. It’s amazing. You don’t have to refuel it, you don’t have to maintain it, it’s just there.” Instead of investing in fusion, Musk advocates for a focus on solar power and batteries, arguing that “we can easily power all of Earth with photovoltaics and batteries… the numbers just work.” He also sees a role for wind, nuclear fission, geothermal, and hydropower, but remains unconvinced that fusion is the most practical or immediate solution. It’s clear Elon is talking his own book, but then again, there haven’t been a lot of people that have been more influential in pushing the evolution toward new energy sources.

So caution is warranted. Fusion remains a deep-tech domain marked by high complexity, long development timelines, and uncertainties in regulation, cost structure, and scalability. None of the fusion companies are publicly listed yet, and that’s unlikely to change soon. However, with some imagination, investors can gain indirect exposure through large, publicly traded companies that are investing in or partnering with fusion ventures. For instance, Italian energy giant Eni has invested in Commonwealth Fusion Systems (CFS) and is working on the commercialization of fusion power. Canadian oil and gas producer Cenovus Energy was an early backer of General Fusion. Steelmaker Nucor is collaborating with Helion Energy to develop a fusion power plant for its own operations. And while not a direct investor, Microsoft has signed a power purchase agreement with Helion, aiming to begin sourcing fusion energy as early as 2028. For stock market investors, this means fusion is not yet a direct investment option, but it is something to keep an eye on. Not because it will disrupt energy markets tomorrow, but because its potential is so profound that a breakthrough could reshape entire value chains.

Moreover, the technological landscape is shifting. Companies like First Light, Type One, and CFS are increasingly applying the first principles engineering mindset popularized by SpaceX: don’t start from legacy assumptions, reduce the problem to physics and build up from there. Combined with powerful simulations, faster testing cycles, and growing computing power, this mindset could radically compress the fusion timeline. For now, fusion remains the domain of governments, venture capital, and industrial partners. But as technology keeps moving from lab to market, it may one day become a relevant theme for long-term public investors as well. Fusion belongs on the radar, just not yet in the portfolio it seems.