Pioneering Fusion Power Plant Collaboration - Nucor Partners With Helion Energy: Report

Nucor Corporation NUE, a leading steelmaker, has reportedly unveiled plans to collaborate with fusion startup Helion Energy on establishing a 500-megawatt fusion power plant at one of its U.S. steel mills by 2030.

This venture could generate enough electricity to supply hundreds of thousands of residences, comparable to a standard power station.

Nucor is investing $35 million in Helion, which is backed by OpenAI Chief Executive Sam Altman, the WSJ reported.

The report noted that the deal is a bet on fusion, a technology that hasn't yet produced electricity. 

Nucor is reportedly accelerating its green energy initiatives because it faces increasing demands for green steel, especially from major clients like General Motors Company GM and cooling equipment manufacturer Trane Technologies Plc TT.

"We don't want to sit on the sidelines and wait for all these technologies and hope they get developed," the report quoted an interview by Leon Topalian, Nucor's chief executive.

Recent advancements in fusion technology, particularly from the Lawrence Livermore National Laboratory, have rekindled optimism in fusion's commercial viability.

The proposed fusion plant by Nucor and Helion is slated to have ten times the capacity of another Helion project aimed at supplying fusion-based electricity to Microsoft Corporation MSFT by 2028, the report said.

Helion's fundraising feats have raked in approximately $630 million, including the Nucor investment. Altman has invested $375 million in Helion, the report noted.

Price Action: NUE shares closed lower by 2.24% at $151.77 on Tuesday.

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