Fusion energy is a powerful force. It's the same process that the sun and other stars use to make energy. If we could harness the power of fusion energy for commercial applications, it would be a truly groundbreaking achievement. Fusion could provide a nearly limitless source of continual clean energy. Even better, fusion energy doesn't come with the safety concerns of nuclear power, the environmental issues of fossil fuels, or the intermittency problems of renewable energy.
Scientists and engineers worldwide have been looking to recreate and harness the power of fusion energy for almost 100 years. Several companies are investing in efforts aimed at commercializing fusion energy. Here's why you'll want to consider investing in fusion energy and some notable companies investing in this exciting technology.
Why invest?
Why invest in fusion energy?
Fusion energy holds immense promise. Unlike nonrenewable energy sources like oil, natural gas, coal, and nuclear energy, fusion energy doesn't produce greenhouse gases or other air pollution. It also doesn't melt down or produce high levels of radioactive waste like nuclear energy. Meanwhile, it doesn't have the intermittency problems of some forms of renewable energy. Fusion energy would be an always-on clean energy source, making it ideal for the baseload power needed to run our modern world.
It would also be a very abundant energy source. Fusing atoms in a controlled environment releases four times the energy as nuclear fission reactions at equal mass and almost 4 million times more energy than from the chemical reaction of burning coal, oil, or natural gas. Meanwhile, the elements required to produce fusion energy (deuterium and tritium) are abundant enough that we could produce fusion energy for millions of years.
According to the Fusion Industry Association, most of its member companies (89%) believe that fusion can provide electricity to the grid by the end of the 2030s. However, getting there will require a lot more funding. While the industry has poured more than $7.1 billion into fusion energy investments over the years, the investment rate has been slowing (only $900 million in 2024, down from $1.4 billion in 2023 and $2.8 billion in 2022).
The fusion industry has achieved several significant milestones over the years. One of the biggest came in 2022 at the Lawrence Livermore National Laboratory. The National Ignition Facility conducted the first controlled fusion experiment in history that produced more energy from fusion than the laser used to create it.
The industry expects to reach the point where it will be able to produce commercial power sometime in the coming decades. The most ambitious timeline is from Helion Energy, which expects to start producing commercial power from its first plant by 2028. It will sell that electricity directly to technology giant Microsoft (MSFT -0.8%) to help power its operations.
How to invest
How to invest in fusion energy companies
Fusion energy holds tremendous potential to provide the world with almost limitless clean power. However, the industry is likely far away from achieving commercially viable fusion power, especially at the scale needed to help meet the world's surging need for electricity. Further, none of the companies working on fusion energy trade publicly, so you can't invest in a pure-play fusion energy stock just yet.
However, you can invest in a company that has made an investment in fusion energy. Here are some of the notable publicly traded companies with fusion-powered upside potential.
Alphabet (Google)
Technology titan Alphabet's (GOOG -0.51%)(GOOGL -0.56%) search arm, Google, has partnered with TAE Technologies for more than a decade to help develop fusion energy to power its artificial intelligence (AI) and computing power needs one day. The nuclear fusion startup has a bold goal to develop a commercial-scale fusion reactor that can deliver energy to the grid by the early 2030s. Google subsequently invested directly in TAE Technologies in 2022 to provide it with capital to help commercialize its fusion energy technology.
Chevron
Global oil and gas giant Chevron (CVX -0.43%) has been slowly investing in the future of energy. The company formed Chevron Technology Ventures (CTV) to invest in new technologies that could enhance the company's operations. In 2020, CTV invested in Zap Energy, which is developing a next-generation nuclear reactor with an innovative approach to advance commercially scalable fusion energy. The oil company followed that up in 2022 by joining Google and investing in nuclear fusion startup TAE Technologies.
Cenovus Energy
Canadian oil and gas producer Cenovus Energy (CVE -0.6%) was an early investor in General Fusion. The Canadian fusion energy startup is working on what it believes will be first-of-a-kind breakthroughs in 2025 and 2026 that will put it on the fast track toward commercializing fusion energy.
Nucor
Steelmaker Nucor (NUE 1.85%) unveiled a collaboration with nuclear fusion startup Helion in 2023. Helion will develop a 500-megawatt fusion power plant to supply zero-carbon electricity from fusion directly to a Nucor steel plant. They're working to get the plant online as soon as possible, with a target of 2030. Nucor made a $35 million direct investment into Helion as part of the partnership to help accelerate the deployment of fusion energy.
Microsoft
Technology giant Microsoft hasn't made a direct equity investment in fusion energy. However, it was the first company to agree to buy fusion power from Helion Energy's inaugural plant, which it expects will come online in 2028. The 50-megawatt contract will enable Helion to commercialize the project, which will help meet Microsoft's almost insatiable demand for energy to power its AI and cloud computing operations. It could be the first of many agreements Microsoft signs to buy fusion power to support its clean energy needs.
Eni
Italian energy company Eni (E -0.74%) has invested $50 million into Commonwealth Fusion Systems (CFS), a spinoff of the Massachusetts Institute of Technology (MIT). The companies are collaborating to help accelerate the industrial development of CFS' magnetic confinement fusion technology. CFS has already reached a key milestone in developing its technology, putting it in a solid position to develop the first plant capable of producing fusion energy and feeding it to the power grid.
Related investing topics
A promising technology
A very promising technology
Fusion energy could be the silver-bullet technology that enables the world to produce enough power to meet its growing needs without causing any additional harm to the environment. While many companies are working on fusion energy, the promising power technology isn't yet at the stage where it can produce commercially viable electricity for the grid. It will require continued investment to reach that point, which could be many years away. So, while the technology holds immense promise, it can't fuel returns for investors in the near term. In the meantime, investors can consider companies that have invested in the sector in hopes they find the key to unlocking the immense potential of this promising energy source.
FAQs
Fusion Energy Stocks FAQs
Can I buy shares in fusion energy?
Currently, there aren't any publicly traded companies that produce fusion energy, so you can't buy shares of a fusion energy stock. However, several public companies have invested in fusion energy startups, including Chevron, Alphabet, Eni, and Nucor.
Are there any publicly traded fusion energy companies?
There are currently no publicly traded fusion energy companies. However, several public companies have invested in fusion energy startups, including Chevron, Alphabet, Eni, and Nucor.
What are the risks associated with investing in fusion energy stocks?
There are several risks associated with fusion energy stocks. The biggest is that the technology isn't yet commercially viable. The companies that have invested in the technology might never see a return on their investment. Other risks include a lack of funding and a competitor beating them to the market.
When is fusion energy expected to become commercially viable?
Fusion energy companies are working hard to produce commercially viable fusion energy. Helion Energy is among those closest to producing commercially viable fusion energy. The company is building its first fusion energy plant, which will sell the power it produces to Microsoft. It aims to begin producing by 2028 and faces financial penalties if it fails to meet that target date.
