What Are The First Steps Toward Commercial Fusion Energy?

Microsoft and Helion have announced one of the first commercial fusion energy systems is scheduled to be delivered in 2028. The motivation for Microsoft’s interest in fusion energy is obvious – the rapidly increasing demand for electricity to power datacenters, which are forecasted to use 8% of US electricity by 2030. However, the real question that we should be asking is “what are the steps that are required to commercialize fusion?” While the answer(s) to this question depends somewhat on the specific fusion approach utilized, here are some of the more universal steps that are needed:

1. Technology Proof of Concept: This step demonstrates the fusion approach in a laboratory environment. The only “complete” proof of concept was in late 2022, an ignition at the U.S. National Ignition Facility (NIF) produced more energy than impinged on the target. Similar experiments are ongoing for magnetic containment (the ITAR Tokamak), magnetized target fusion (also known as pulsed magnetic fusion), and for z-pinch magnetic approaches.
2. Commercialization Proof of Concept: This involves the building of a prototype commercial fusion plant that can produce power for an extended period of time using technology similar (but not necessarily identical) to what would go into a mass-produced fusion plant. It does not need to operate continuously or be economically competitive with other electricity sources.
3. First Commercial Plant: This involves actually building a fusion electricity plant that would meet up-time and economic expectations of a commercial power provider such as a utility. It may not be yet optimized from a construction cost standpoint, but once commissioned it can reliably and economically produce electricity for injection onto the power grid.

The last two steps have not occurred yet, but certainly some of the reactors being built in the next few years are seen to be both a technology and commercialization proof of concept.