Global energy technology company Eni and Commonwealth Fusion Systems (CFS) have entered into a power purchase agreement (PPA) valued at over $1 billion, furthering their collaboration to advance commercial fusion power. The agreement builds on their partnership, which began with Eni’s investment in CFS in 2018.

Aerial View Of The Commonwealth Fusion Systems Arc Facility

Under the PPA, Eni will procure clean electricity from CFS’s 400 MW ARC fusion power plant, located in Chesterfield County, Virginia. The facility is expected to connect to the grid in the early 2030s, marking a significant step toward sustainable energy production.

This deal represents CFS’s second major power offtake contract for its first commercial fusion facility within three months. It reflects growing industry confidence in fusion as a reliable source of clean, abundant energy. The agreement follows CFS’s recent $863 million Series B2 funding round, with Eni increasing its financial stake in the company.

Eni’s CEO, Claudio Descalzi, emphasized the significance of the partnership, stating: “This partnership is a turning point, committing to fusion’s industrialization and its potential to deliver safe, clean, and virtually inexhaustible energy to meet rising global demand.” The collaboration includes technology sharing, operational support, and project execution strategies, aimed at accelerating the commercialization of fusion power.

CFS’s progress is supported by advancements in superconducting magnet technology and the ongoing construction of its SPARC fusion demonstration device in Massachusetts. These developments strengthen the company’s path to delivering commercially viable fusion energy.

The PPA underscores Eni and CFS’s shared commitment to fusion as a transformative technology for the global energy transition, offering a sustainable solution to meet increasing energy needs.