Commonwealth Fusion Systems (CFS) has struck a landmark agreement with Italian energy giant Eni worth over $1 billion, committing to supply power from its upcoming fusion reactor. The deal marks a major milestone in the race to bring commercial fusion energy to market.
A billion-dollar bet on fusion power
CFS’s first commercial power plant, named Arc, will be built outside Richmond, Virginia, near one of the nation’s largest clusters of data centers. The 400-megawatt reactor is slated to begin operations in the early 2030s, according to CEO Bob Mumgaard.
This agreement with Eni follows a similar deal struck in June with Google, which committed to purchasing half of Arc’s future output. Neither company disclosed the exact volume of power or the full timeline of the contracts.
Progress on Sparc, the demonstration reactor
Before Arc comes online, CFS is focused on its demonstration reactor, Sparc, currently under construction in Devens, Massachusetts. Mumgaard confirmed that the project is 65% complete and on track to start up in 2026. The purpose of Sparc, he explained, is to gain real-world experience building a nearly full-scale system that can pave the way for Arc and future reactors.
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CFS’s fusion design is based on the tokamak system, which uses powerful superconducting magnets to confine and compress plasma until atomic fusion occurs, releasing energy. The company has already raised nearly $3 billion in funding, with major investors including Google, Nvidia, Breakthrough Energy Ventures, and Eni itself.
A deal built on confidence and risk
Industry analysts note that the agreements with Google and Eni carry significant risk. If Sparc or Arc underperform, both buyers could face delays—or even lose money. However, Mumgaard emphasized that the contracts are structured to balance accountability with collaboration, acknowledging the challenges of building first-of-its-kind technology.
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Eni, which does not have U.S.-based operations requiring such vast energy consumption, has confirmed it will resell the electricity from Arc into the grid. While the cost of early fusion power may exceed market prices, the deal helps establish a reference value for fusion-generated electricity and reassures investors about CFS’s long-term viability.
As Mumgaard put it, the agreement “gives us certainty about where the power will go and what the price will be,” providing a foundation to attract more financing for Arc’s construction.
