Fusion science is no longer science fiction

The fusion breakthrough in California will have an enormous impact on all the startups working in this field.

THE HISTORIC ACHIEVEMENT of fusion ignition at Lawrence Livermore National Laboratory’s National Ignition Facility in California in December could mark the turning point for startups developing fusion energy technology. For the first time, researchers produced more energy from fusion than the laser energy used to drive it.

This advance “will help us solve humanity’s most complex and pressing problems, like providing clean power to combat climate change,” says US Secretary of Energy Jennifer M. Granholm, announcing the historic milestone.

It is hard to overstate the significance of this breakthrough. Research into the science of fusion had continued for so long that many believed it was science fiction, like time travel, and simply could not be done. The announcement from the US Dept of Energy on Dec. 13 marks a historic inflection point with implications for the whole of humanity.

OurCrowd is investing alongside top VCs in two fusion startups. One is a renowned US-based project backed by the world’s leading investors with a $1.8 billion funding round, the other is an?Israel-based, early-stage startup?developing a container-size clean energy nuclear fusion generator that can produce enough power for a small city.

For decades, the dream of safe, limitless energy from controlled nuclear fusion, avoiding the radioactive waste and potential dangers of existing nuclear fission plants, has tantalized scientists. The race to develop carbon-free energy has reignited the search for alternative power sources.

Existing energy sources have problems and limitations, thrown into sharp relief by the supply crisis and spike in prices triggered by the war in Ukraine. While the commercialization and full deployment of fusion energy is still probably many years away, it could represent a crucial global breakthrough.?

Nuclear fusion could provide the world with limitless, safe, cheap and clean energy but the materials and technology require significant investment that until recently has only been possible by governments and huge corporations. Fusion reactions are very difficult to conduct in a controlled manner. Managing fusion reactions for net energy output on a commercial scale has not yet been achieved.

The team at the National Ignition Facility in California has proved for the first time that the science behind fusion works. The technology had been running successfully for two weeks at Lawrence Livermore National Laboratory, producing more energy than it was ingesting, when the official announcement was made. While the amount of fusion energy produced so far may be not more than the amount required to cook an average American dinner, this ain’t mashed potatoes. This is a huge step forward on the path toward almost limitless emission-free clean energy. Fusion is the filet meat of energy generation. This breakthrough is wonderful news.

We are at a pivotal moment in history, similar to 1880 when Thomas Edison patented the lightbulb. Electricity had been discovered decades earlier, but Edison showed it could be harnessed for practical use.

The breakthrough in California will have an enormous impact on all the startups working in this field. Demand for emission-free, sustainable energy has recently encouraged private investment in the sector.?We expect this latest news to turbocharge government and private spending on energy research.

Impact investing

However, excitement over fusion also highlights a significant problem we currently see with impact investing. Of more than $33 trillion assets under management forecast to be focused on ESG investments by 2026, only about $260 billion has been invested in climate tech so far, according to PwC.

Most of the money is being spent on existing energy companies and multinationals, and new solar and wind farms. All this is important, but equally important startup technologies that break new barriers and provide new solutions.

Clearly, impact investing is not confined to energy. It must be directed at food and water technology, healthcare, sustainability and other areas where innovation can improve living conditions for those who need it most.

For impact investing to really be effective, we need to look beyond the horizon and create a future enhanced by clean, low-emission technology.

ICON, a company that re-imagines homebuilding and construction using 3D printing, recently secured a $57 million contract with NASA to build homes on a future base on the Moon. Construction materials are among the worst pollutants on the planet. A decade ago, ICON’s technology seemed like science fiction, but the company is already building low-emission homes in Austin, Texas. Now it can literally reach for the stars.

Impact investing should be good for the pocketbook as well as the planet. Solving these energy and other emissions problem in agriculture, food, construction, steel and other industries should make a huge contribution to solving global climate challenges while also creating good returns for investors.

It is our privilege as investors to continue the search for more breakthrough energy technologies, and provide the funding that visionary entrepreneurs need to power their dreams of a clean, sustainable future.

I invite you to join us.

About this newsletter

I’m the CEO and Founder of?OurCrowd, the global equity investment platform that gives individual accredited investors access to pre-IPO startup deals alongside top-tier VCs. If you are an investor, private family office or financial advisor, subscribe?here?for my biweekly commentary or follow me on?Twitter. I welcome your comments in the response section below.