What is fusion energy and how is it different from current nuclear power?

Fusion energy is the same process that powers the sun, combining light atoms to release enormous energy. Unlike current nuclear plants that use fission (splitting atoms), fusion produces more energy, creates minimal radioactive waste, and can't melt down. It's been difficult to commercialize, but Google's deal with Commonwealth Fusion Systems signals it's becoming viable as a clean energy source.

Why is Google's power purchase agreement with Commonwealth Fusion Systems important?

Google's agreement is a milestone because it's the first time a major corporation has committed to buying electricity from a fusion power plant. This validates the technology commercially and signals to investors and other companies that fusion energy is moving from experimental research to practical application, potentially accelerating investment and development across the entire sector.

How could these companies benefit from fusion energy development?

These companies represent different parts of the fusion energy supply chain. Some develop nuclear technologies, others supply essential materials like uranium and boron, while others manufacture grid components needed to deliver fusion power. As fusion moves toward commercialization, these "first movers" are positioned to benefit from the massive infrastructure investment required to build a global fusion energy ecosystem.

What is a power purchase agreement (PPA)?

A power purchase agreement (PPA) is a contract between an electricity provider and a customer who buys the energy. In Google's case, they've committed to purchasing electricity from Commonwealth Fusion Systems' future fusion power plant. PPAs provide financial certainty for energy developers, helping them secure funding to build new power plants by guaranteeing they'll have customers for the electricity they generate.

Is this a short-term or long-term investment opportunity?

This is primarily a long-term investment opportunity. While Google's agreement has created immediate interest, the full development of commercial fusion energy will take years. This theme captures companies positioned to benefit throughout this multi-decade journey, from today's infrastructure preparations to the eventual widespread adoption of fusion power.

14 handpicked stocks

Fusion's First Movers

Google's landmark power purchase deal with Commonwealth Fusion Systems signals that commercially viable fusion energy is becoming reality. This collection features carefully selected companies positioned to benefit as corporate adoption accelerates this revolutionary clean energy source.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 2