Commonwealth Fusion Systems (CFS) is constructing a nuclear fusion power plant in Virginia. CFS and global energy company Eni announced a purchase agreement valued at over $1 billion.

The deal signals a major commitment to commercializing fusion power and builds on the two companies’ existing partnership.

A Partnership to Advance Fusion Energy Commercialization

As part of the agreement, Eni will acquire decarbonized power from CFS’s ARC facility, the first grid-scale fusion power plant. According to CFS, the plant is expected to connect to the grid and contribute power in the early 2030s. This is the second offtake agreement that CFS has signed in three months.

According to CFS, the ARC nuclear fusion power plant will support the state of Virginia’s economic development and clean energy needs. It’s expected to generate billions of dollars in economic development in the region while creating hundreds of jobs during construction and long-term operations.

The nuclear fusion company says ARC will generate 400 megawatts of electricity, enough energy to power industrial sites or about 150,000 homes. Nuclear fusion promises to address the need for a clean and abundant energy source to replace fossil fuels.

“The agreement with Eni demonstrates the value of fusion energy on the grid,” said CFS Co-founder and CEO Bob Mumgaard. “It is a big vote of confidence to have Eni, who has contributed to our execution since the beginning, buy the power we intend to make in Virginia.”

Eni’s CEO, Claudio Descalzi, shares a similar perspective. “This strategic collaboration, with a tangible commitment to the purchase of fusion energy, marks a turning point in which fusion becomes a full industrial opportunity,” Descalzi said. “As energy demand grows, Eni supports the development of fusion power as a new energy paradigm capable of producing clean, safe, and virtually inexhaustible energy.”

Eni and CFS’s partnership started with Eni’s initial investment in 2018.