Stocks To Watch For Clean Energy: Achievement In Nuclear Fusion - Cenovus Energy (NYSE:CVE), Chevron (NYSE:CVX)

Nuclear fusion reached a new milestone, generating more energy than ever before during an experiment conducted at the Joint European Torus (JET) laboratory in the U.K.

The JET facility, an experimental fusion reactor, has been at the forefront of fusion research for over four decades, BBC noted.

The UK Minister for Nuclear Andrew Bowie lauded the accomplishment as a “fitting swansong” for the JET project.

While nuclear fusion holds the promise of abundant clean energy without carbon emissions, challenges remain. Dr. Aneeqa Khan, Research Fellow in Nuclear Fusion at the University of Manchester, emphasized the need for extremely high temperatures, ten times hotter than the Sun, and specific conditions for atoms to fuse on Earth.

The experiments at JET produced 69 megajoules of energy over five seconds, a significant achievement but still a long way from practical applications.

The JET facility, funded predominantly by the EU nuclear research program Euratom, symbolized successful international collaboration. However, the UK’s role in European fusion research post-Brexit remains uncertain, with the government opting out of re-joining Euratom.

The UK government’s decision not to re-join Euratom is attributed to delays with ITER, Euratom’s successor to JET, which is now expected to start full-scale experiments no earlier than 2035.

Looking ahead, the UK government aims to build the world’s first fusion power plant in Nottinghamshire, known as the Spherical Tokamak for Energy Production project. Operated by the UK Industrial Fusion Solutions, the project aims to initiate operations in the 2040s, ushering in a new era of clean energy production.

While pure-play nuclear fusion stocks are off the table for now, here are some large companies that invested in the technology:

Chevron Corp CVX and Alphabet Inc GOOGGOOGL participated in a $250 million investment in TAE Technologies in 2022.
In 2021, Cenovus Energy Inc CVE invested $4 million in General Fusion, a Canada-based nuclear fusion technology startup in a $19.5-million new development capital, including some from Bezos Expeditions, the personal investment company of Amazon.com founder Jeff Bezos.
In 2023, Microsoft Corp MSFT signed a power purchase deal with nuclear fusion company Helion Energy, providing Microsoft electricity from its first fusion power plant that is expected to be online by 2028 and will target power generation of 50 MW or greater after a one-year ramp-up period.
The Chinese auto manufacturer NIO Inc NIO invested in a nuclear fusion start-up, Neo Fusion, in May 2023.
Nio invested 995 million yuan for a 19.9% stake, while Nio Capital, founded by Nio’s chief executive William Li, invested 505 million yuan for a 10.1% share.
In 2021, Commonwealth Fusion Systems closed on more than $1.8 billion in Series B funding from Bill Gates, Google, Eni SpA E, and Equinor ASA EQNR, among other investors.