Second PPA tied to ARC plant in Chesterfield County, Virginia
Google-backed nuclear fusion firm Commonwealth Fusion Systems (CFS) has signed a Power Purchase Agreement (PPA) with Italian energy firm Eni for power from its ARC power plant in Chesterfield County, Virginia.
In July, CFS became one of the first fusion firms to sign a PPA with a data center firm after inking a 200MW PPA with Google for energy from the ARC plant.
The subsequent deal with Eni is the second PPA tied to the ARC plant, and according to the companies, it is worth in excess of $1 billion. Exact financial terms were not disclosed, nor was the precise capacity expected to be supplied.
“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,” said Bob Mumgaard, co-founder and CEO of CFS. “Our fusion power attracts diverse customers across the world — from hyperscalers to traditional energy leaders — because of the promise of clean, almost limitless energy.”
The PPA expands upon an already existing partnership. Back in 2023, the two firms signed a Collaboration Framework Agreement to accelerate fusion energy development. The PPA also follows the successful close of CFS’s Series B2 funding round, in which it raised $863 million, with Eni increasing its direct investment in the company.
“Eni has been strengthening its collaboration with CFS with 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 industrialization for a more sustainable energy future,” said Eni CEO Claudio Descalzi.
The ARC plant will be located at the James River Industrial Park in Chesterfield County and is expected to be the first fusion project of its kind to deliver power to an electricity grid, should it launch on schedule. The plant has a planned capacity of 400MW, and is projected to deliver its first power to the Virginia grid in the early 2030s.
CFS was founded in 2018 and has raised more than $2bn in its quest to commercialize nuclear fusion. The company also counts Microsoft as one of its backers, with the company providing cloud services to CFS.
Unlike nuclear fission, the reaction utilized in traditional nuclear power plants, which involves the splitting of heavy nuclei to generate energy, nuclear fusion reverses the process by combining light nuclei into a heavier one. If successfully commercialized, fusion has the potential to provide an almost limitless source of energy.
However, significant barriers remain, including high upfront costs, risk of heat damage, and plasma confinement. As a result, doubts persist regarding whether fusion can be successfully commercialized in the near term, with most projections extending beyond the 2040s.
Fusion is growing in popularity across the data center world. Google has also backed fusion developer TAE Technologies, which recently raised more than $150m in its latest funding round.
Back in 2023, Microsoft became the first data center company to sign a PPA with a fusion firm, after inking a 50MW deal with Helion, a fusion power startup. The plant is expected to be online by 2028, which is far sooner than many think is feasible.
OpenAI has also indicated a willingness to purchase fusion energy to power its data center operations. Last year, it was reported that the company was in talks to purchase "vast quantities" of power from Helion.
Source: DCD
