Fusion on the Grid

The U.S. currently leads the private fusion energy sector with 25 companies and over $6 billion in investment, but faces significant competition from China's state-funded programs. The report highlights fusion's potential to provide clean, firm power, support AI-driven energy demand from data centers, and create a new export market. To maintain leadership, the author recommends a $9.25 billion one-time appropriation for the 2025 Reconciliation Package, reorienting Department of Energy research toward commercialization gaps like breeding blankets, and streamlining regulatory and export frameworks.

• The United States is the current global leader in private fusion energy, with 25 verified companies headquartered in the U.S. that have attracted more than $6 billion in cumulative investment.
• China represents a major strategic competitor, investing approximately $1.5 billion of state funds in fusion research last year with a strategy to scale U.S. innovation through state funding to dominate the global market.
• Fusion energy is positioned as a critical solution for 'energy addition' to meet rising electricity demand from AI and data centers, which are projected to account for 4.6-9.1% of U.S. electricity consumption by 2030.
• The Fusion Industry Association has requested a one-time appropriation of $9.25 billion in the 2025 reconciliation package, with $4.95 billion for the Milestone-Based Fusion Development Program and $4.3 billion for test beds and other public-private partnership programs.
• The U.S. has fallen behind in critical enabling technologies necessary for commercialization, specifically heat-resistant materials and breeding blanket development research.
• The Nuclear Regulatory Commission (NRC) has provided a competitive advantage by deciding in 2023 to regulate fusion machines under the 'byproduct materials' framework rather than the more stringent fission framework.

APA

Clean Air Task Force (2025). Fusion on the Grid. https://cdn.catf.us/wp-content/uploads/2025/04/03031540/CATF-US-Fusion-Policy-Report-04.25.pdf

Chicago

Clean Air Task Force. Fusion on the Grid. 2025. https://cdn.catf.us/wp-content/uploads/2025/04/03031540/CATF-US-Fusion-Policy-Report-04.25.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Fusion on the Grid |date=April 2025 |url=https://cdn.catf.us/wp-content/uploads/2025/04/03031540/CATF-US-Fusion-Policy-Report-04.25.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2025fusion, author = {{Clean Air Task Force}}, title = {{Fusion on the Grid}}, institution = {Clean Air Task Force}, year = {2025}, month = apr, url = {https://cdn.catf.us/wp-content/uploads/2025/04/03031540/CATF-US-Fusion-Policy-Report-04.25.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }