Commonwealth Fusion systems Secures Over $1 Billion in Power Purchase Agreements for Pioneering Fusion Reactor
CAMBRIDGE, MA – Commonwealth Fusion Systems (CFS) has secured power purchase agreements exceeding $1 billion for teh electricity generated by its planned Arc fusion reactor, a significant step toward commercializing fusion energy. The agreements, with both Google and Italian energy giant Eni, provide financial certainty for the project and establish a framework for pricing fusion power.
CFS is developing the Arc reactor, which utilizes high-temperature plasma where particles collide to create new atoms and release energy. The company’s sparc reactor, currently under construction, is designed to demonstrate net energy gain - producing more power than is required to sustain the fusion reaction. Completion of Sparc is expected to consume a ample portion of the nearly $3 billion CFS has raised,including a recent $863 million Series B2 round announced August 28,2025,with participation from investors including Nvidia,Google,Breakthrough Energy Ventures,and Eni.
The agreements with google and Eni are structured to be collaborative, acknowledging the inherent challenges of developing a first-of-its-kind technology. “No one in this situation is like, oh, you know, invent an entire new technology, an entire industry, and if it doesn’t work on this day, we’re just going to walk away,” said CFS CEO Bob Mumgaard.
While Google intends to utilize Arc’s electricity to power its data centers, Eni, a major oil and gas company, will likely resell the power to the grid.Lorenzo Fiorillo, Eni’s director of technology, R&D, and digital, confirmed, “The power will be sent to the grid at the end of the day.” Eni anticipates operating at a loss trading the power initially, viewing the agreement as a means to establish a market price for fusion energy and attract further investment.
“The power purchase agreement…gives us the certainty of where the power is going to go, what the price is going to be, etc.And that allows us to then take that package to more financial investors in project finance and othre areas and start having conversations about what it’s going to be like to actually finance this plant,” Mumgaard explained. The agreements represent a critical milestone in CFS’s efforts to bring commercially viable fusion energy to the grid.
