Eni Signs $1B Fusion Power Offtake Deal With Commonwealth Fusion Systems

Eni (BIT: ENI) has deepened its long-standing partnership with Commonwealth Fusion Systems (CFS) by signing a landmark power purchase agreement (PPA) valued at over $1 billion. The deal secures a portion of the decarbonized electricity to be generated by CFS’s first grid-scale fusion power plant, the 400 MW ARC facility in Virginia, slated to connect to the U.S. grid in the early 2030s.

The agreement marks CFS’s second major offtake deal in three months and underscores growing commercial confidence in fusion as a viable energy source. “It is a big vote of confidence to have Eni, who has contributed to our execution since the beginning, buy the power we intend to make in Virginia,” said Bob Mumgaard, CEO of CFS.

Eni has been a strategic investor in CFS since 2018 and expanded its stake during the company’s $863 million Series B2 fundraising round. The Italian energy group and the Massachusetts-based fusion startup signed a Collaboration Framework Agreement in 2023 to accelerate project development, combining Eni’s industrial expertise with CFS’s technological breakthroughs.

For Eni, the deal represents a concrete step toward its net-zero 2050 strategy. CEO Claudio Descalzi described the PPA as a “turning point in which fusion becomes a full industrial opportunity,” reinforcing Eni’s role in advancing breakthrough technologies for the energy transition.

CFS, the world’s largest private fusion company, is developing the ARC plant following progress with its SPARC demonstration project in Massachusetts. The company’s advances in high-temperature superconducting magnets have been central to sustaining momentum toward commercial fusion.

The Virginia ARC project adds to the state’s growing profile as a hub for advanced energy technologies. For Eni, which has operated in the U.S. since 1968, the move strengthens its North American energy transition portfolio while positioning it among the first global energy majors to lock in fusion power supply.

Fusion energy, long seen as the “holy grail” of clean power due to its potential to deliver virtually limitless, carbon-free electricity, is now attracting both traditional energy players and new customers such as hyperscalers seeking reliable decarbonized supply.

By committing to purchase fusion power at scale, Eni has not only secured a long-term clean energy source but also validated CFS’s pathway to commercialization, sending a signal that fusion is edging closer to becoming part of the global energy mix.