The race for commercial fusion power is intensifying, with Zap Energy—a startup based in Everett, Washington—recently securing a substantial $130 million funding round. This brings the company’s total funding to $327 million, according to PitchBook, making it one of the top fusion startups in terms of investment.
The latest funding round was led by Soros Fund Management, with participation from new investors including BAM Elevate, Emerson Collective, Mizuho Financial Group, Plynth Energy, and Xplor Ventures. Existing backers such as Breakthrough Energy Ventures, Chevron Technology Ventures, DCVC, Energy Impact Partners, Lowercarbon Capital, and Shell Ventures also contributed.
Despite the common quip that commercial fusion power is “always a decade away,” recent advancements—like a significant breakthrough at the National Ignition Facility in 2022—have renewed optimism among investors. They see potential in tapping into the multi-trillion-dollar global energy market while contributing to decarbonization efforts.
Zap Energy’s innovative approach to fusion is termed “sheared flow stabilized Z-pinch.” This method utilizes an electric current through plasma, creating a magnetic field that compresses the plasma without the need for costly magnets or lasers. When the isotopes deuterium and tritium fuse, they release neutrons and heat, which are captured by molten metal surrounding the reaction chamber to generate electricity.
The compact reactor system, measuring just 10 feet across, is projected to produce 50 megawatts of electricity—enough to power between 50,000 to 60,000 homes. The design allows for multiple reactors to be clustered together for larger power needs.
Although this latest funding round is smaller than the $160 million Series C raised in 2022, it is expected to assist Zap Energy in validating critical components of its reactor. The company is currently navigating what some call the “commercial valley of death,” where startups with proven technology still need significant investment to achieve commercial scalability.
With the backing of major investors like Soros Fund Management, along with continued support from established players such as Chevron Technology Ventures and Breakthrough Energy Ventures, Zap Energy appears to be maintaining momentum despite the challenges of bringing innovative climate tech to market.
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