Tokamak raises $125 million to commercialise fusion energy technology

Tokamak Energy will use the money to accelerate its plans to build fusion power plants and grow its superconductive magnets operations

Tokamak Energy’s ST40 fusion device. The company has raised $125 million in new funding. Photo: Tokamak Energy

British fusion energy company Tokamak Energy has raised £100 million ($125 million) to push forward its ambitious plans to build a commercially viable fusion power plant in the UK.

It will also use the funding to grow the part of the business that manufactures high-temperature superconductive (HTS) magnets used in fusion reactors.

The funding round was co-led by East X Ventures and Lingotto Investment Management, which already back Tokamak Energy. They were joined by new investors, including Furukawa Electric Company, British Patient Capital, global maritime company BW Group and US-based Sabanci Climate Ventures.

“In addition to the ongoing support of our existing shareholders, we are delighted to welcome new strategic investors to collectively accelerate our ambitious plans,” Tokamak chief executive Warrick Matthews said. “Tokamak Energy’s mission is to make fusion energy a reality, and we believe the only way to achieve that is through strong, global partnerships.

“This raise provides us with added experience and capability to drive through this critical and exciting phase of fusion development, addressing the twin challenges of climate change and energy security. Simultaneously, we are focused on commercialising our transformative HTS technology as TE Magnetics. Launching this new business division allows us to focus on our core mission of delivering clean, secure and affordable fusion energy, while supporting our strategy for rapid growth across complementary markets.”

Chief executive Warrick Matthews said Tokamak Energy's 'mission is to make fusion energy a reality'. Matthew Davies / The National

'Clean energy future'

Tokamak Energy, which is named after the small-scale nuclear fusion reactors it builds, is the only privately funded energy company with more than 10 years experience in its field. The basic idea behind tokamak reactors is to create a fusion reaction by colliding two hydrogen atoms together to create a helium atom.

The reaction requires temperatures 10-15 times hotter than the sun, which would destroy any material used to contain it. Hence, high-temperature superconductive magnets are used to contain the reaction within the tokamak and extract power from it. Unlike fission power generation, there would be no nuclear waste generated from the process, making fusion potentially a source of almost limitless clean energy.

“This accomplishment highlights Tokamak Energy’s commitment to advancing fusion energy – a critical step towards realising a future of clean, sustainable power,” said Dr Geri Richmond, Under Secretary for Science and Innovation at the US Department of Energy. “The DOE is proud to support Tokamak Energy in its journey to achieve commercial fusion energy, which is essential to securing our clean energy future and strengthening our energy independence.”

Chancellor of the Exchequer Rachel Reeves during a visit to Tokamak Energy, near Oxford. Ben Birchall/PA Wire

Based near Oxford, Tokamak Energy was spun out of the UK Atomic Energy Authority in 2009, with initial funding of $335 million, comprising $275 million from private investors and $60 million funded from the UK and US governments. It has a target of building and operating a commercially-viable fusion power plant within the next 10 years.

The UK government has sounded support for Tokamak Energy's efforts and Chancellor Rachel Reeves visited the company's operations last week. “This multi-million-pound investment is a clear signal of Tokamak Energy’s confidence in the UK economy, bringing jobs and kickstarting economic growth as part of our mission to deliver clean power and greater energy independence to Britain,” said Kerry McCarthy, climate minister at the UK's Department for Energy Security and Net Zero.