Type One Energy Secures $87M, Led by Bill Gates, for Fusion Power
▼ Summary
– Type One Energy, a fusion power startup, recently raised $87 million, bringing its total venture investment to over $160 million, and is raising a $250 million Series B.
– The company benefits from surging electricity demand, particularly from data centers, which are expected to triple their power use by 2035.
– Fusion power generates vast clean energy by fusing atoms, producing no significant radioactive waste or meltdown risk, unlike fission.
– Type One uses a magnetic confinement approach called a stellarator, which employs twisted magnets to control plasma for long periods.
– The company plans to sell its technology, not operate plants, with its first commercial plant, Infinity Two, slated for a Tennessee site in the mid-2030s.
The fusion energy company Type One Energy has secured a significant $87 million in new funding, a move that underscores the growing momentum behind clean, limitless power solutions. This latest capital infusion, structured as a convertible note, elevates the startup’s total venture investment to over $160 million. The company is concurrently advancing a $250 million Series B funding round, targeting a pre-money valuation of $900 million. This financial backing reflects surging investor confidence in fusion technology as a critical answer to escalating global electricity demands, particularly from data centers and widespread electrification.
Fusion power represents a transformative energy source with the potential to generate gigawatts of clean electricity. The process involves fusing atomic nuclei, which releases immense heat. This heat is then used to produce steam and spin turbines in power plants, mirroring the operational basics of traditional fossil fuel facilities but without the associated carbon emissions or air pollution. Crucially, fusion reactions do not create long-lived radioactive waste and eliminate the risk of catastrophic nuclear meltdowns associated with fission reactors.
The pursuit of practical fusion energy primarily follows two technological paths: magnetic confinement and inertial confinement. Magnetic confinement uses powerful magnets to compress and control a superheated plasma until fusion occurs. Inertial confinement typically involves compressing fuel pellets, often with lasers, to achieve the necessary conditions. Type One Energy is pursuing the magnetic confinement approach with a specific design known as a stellarator. This complex design arranges magnets in a twisted, doughnut-like shape that is meticulously engineered to contain the turbulent plasma more effectively than simpler designs. While experimental stellarators have successfully contained plasma for extended durations, a commercial power-producing version has yet to be built.
The company has made substantial progress toward commercialization. Last year, Type One Energy entered into agreements with the Tennessee Valley Authority (TVA) to deploy its first commercial power plant, named “Infinity Two.” The planned site is the former Bull Run coal-fired plant in Tennessee, which was retired in 2023. The facility is projected to generate approximately 350 megawatts of electricity, with a potential operational date in the mid-2030s. Unlike many competitors, Type One’s business model focuses on selling its proprietary stellarator technology to utility providers like the TVA, rather than building and operating the power plants itself.
This recent funding success builds upon earlier investment rounds. The company previously closed a $29 million seed round in 2023, which was later expanded to $82.5 million in 2024. Notable investors in these earlier rounds included Breakthrough Energy Ventures, founded by Bill Gates, alongside Doral Energy Tech Ventures and TDK Ventures. The continued financial support from such prominent entities highlights the serious commercial and environmental potential being placed on fusion energy breakthroughs.
(Source: TechCrunch)
