Eni and Commonwealth Fusion Systems (CFS) have announced a landmark power offtake agreement worth more than $1 billion, strengthening their strategic partnership to bring fusion energy to market.
The power purchase agreement (PPA) will see Eni acquire clean electricity from CFS’s planned 400 MW ARC fusion power plant in Chesterfield County, Virginia. The facility, expected to connect to the grid in the early 2030s, will be among the first grid-scale fusion plants in the world. Financial details of the agreement were not disclosed. This marks the second PPA signed by CFS in the past three months for the project.
“The agreement with Eni demonstrates the value of fusion energy on the grid. It is a big vote of confidence to have Eni, who has supported our execution since the beginning, commit to buying the power we will produce in Virginia,” said Bob Mumgaard, Co-founder and Chief Executive of CFS. “Our fusion power attracts customers worldwide — from hyperscalers to traditional energy leaders — because of the promise of clean, almost limitless energy.”
Eni Chief Executive Claudio Descalzi described the deal as a turning point for the sector. “This strategic collaboration, with a tangible commitment to the purchase of fusion energy, marks a moment in which fusion becomes a full industrial opportunity,” he said. “As energy demand grows, Eni supports the development of fusion power as a new paradigm capable of producing clean, safe and virtually inexhaustible energy. This partnership confirms our commitment to making fusion energy a reality.”
The agreement follows CFS’s $863 million Series B2 fundraising round, in which Eni increased its investment. The Italian energy company was one of the first backers of CFS in 2018 and today remains a strategic shareholder. In 2023, the two companies signed a Collaboration Framework Agreement to accelerate the development of fusion power, including technological support, project execution and industry engagement.
CFS has made significant progress towards commercialising fusion energy, including breakthroughs in high-temperature superconducting magnets and progress on its SPARC demonstration machine in Massachusetts.
