Commonwealth Fusion inks $1B power deal with longtime shareholder after $863M fundraising round

Interior of a large industrial building with lots of machinery

Photo | Courtesy of Commonwealth Fusion Systems Commonwealth Fusion has inked a power purchase agreement with Italy-based Eni.

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By Eric Casey

After inking a similar deal with Google in June, Commonwealth Fusion has signed a power purchase agreement with a longtime investor for more than $1 billion after a new fundraising round saw CFS raise $863 million in August.

Like its agreement with Google, CFS’ power offtake agreement with Italian-based energy firm Eni sees the company agree to supply Eni with power for its 400-megawatt ARC fusion power plant planned for Chesterfield County, Virginia, which it expects to come online in the early 2030s.

Eni has been a shareholder in Devens-based CFS since 2018, the year the company was founded, according to a Monday press release from CFS. Eni increased its investment in CFS during the latter firm’s August fundraising round after the two firms signed a cooperation agreement in 2023.

"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," Bob Mumgaard, co-founder and CEO of CFS, said in the press release. "Our fusion power attracts diverse customers across the world — from hyperscalers to traditional energy leaders — because of the promise of clean, almost limitless energy."

Exact financial terms of the power purchase agreement were not disclosed.

CFS’ Series B2 fundraising round will be used to complete SPARC, its fusion demonstration machine in Devens, and for its planned Virginia power plant. Both projects will be critical for CFS as it races with other firms to commercialize fusion energy, a long-sought-after source of clean energy considered to be much safer than traditional nuclear fission power plants.

New investors in CFS during the latest fundraising round include Counterpoint Global, an investment team of Morgan Stanley, and a consortium of 12 Japanese companies led by conglomerates MITSUI & CO., and Mitsubishi Corp.

Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.