Type One Energy raises $200 million for fusion power plant by 2034 — TechCrunch

US startup Type One Energy, based in Knoxville, Tennessee, has raised $200 million in a Series B funding round to develop its first commercial fusion power plant. The company plans to commission a 400 MW plant by 2034, TechCrunch reports.

According to Type One Energy CEO Christopher Mowry, the new funding should cover about half of the cost of the first commercial power plant. He also said the company aims to deliver the project with lower capital costs than some other fusion technology developers.

Bet on external suppliers

Type One Energy plans to design the power plant and many of its components itself, while outsourcing manufacturing to a specially selected network of suppliers. This approach is intended to reduce costs, as the startup will not build its own large-scale manufacturing facilities.

The company is already building a network of partners. Type One Energy will build its first two fusion devices at the Tennessee Valley Authority's Bull Run site. Infrastructure consulting company AECOM is working on the engineering aspects of the Infinity Two project, the startup's first commercial power plant.

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Magnet technology and investors

Type One Energy's competitor, Commonwealth Fusion Systems, has licensed its high-temperature superconducting magnet technology to the startup. It is expected to become one of the key components of the reactor design.

The round was led by returning investor Breakthrough Energy Ventures and Clutterbuck Capital. Lowercarbon Capital, Siemens Energy Ventures and SiteGround Capital also participated in the financing. Type One Energy had previously raised at least $82.5 million.

The model involving external manufacturers reduces the company's risks associated with in-house production, but also means less control over suppliers. Mowry said Type One Energy is betting on managing these risks and on partners' specialization.