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Type One CEO says Tennessee Valley Authority to harness its fusion technology

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  Published in Science and Technology on Friday, September 19th 2025 at 15:14 GMT by reuters.com
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Tennessee Valley Authority to Pioneer Commercial Fusion Power on Retired Coal Site

In a bold pivot that could reshape the American energy landscape, the Tennessee Valley Authority (TVA), the nation’s largest federally owned electric utility, has announced plans to build the first commercial fusion power plant on a former coal‑mining site in the Tennessee Valley. The move, detailed in a Reuters story dated September 19, 2025, signals a historic shift from fossil fuels to the next frontier of clean energy and positions TVA as a front‑line player in the U.S. fusion race.

A Retired Coal Plant Becomes a Fusion Hub

The TVA‑backed project will take place on the site of a decommissioned coal plant in the valley’s central region. The plant has been idle since the mid‑2000s, and its infrastructure—including an extensive grid of transmission lines, a reliable water supply, and a workforce familiar with large‑scale power generation—provides an ideal foundation for a fusion facility. The decision to repurpose a coal site also underscores the utility’s commitment to de‑carbonizing its generation mix and meeting the Biden administration’s goal of net‑zero emissions by 2050.

TVA’s chief operating officer, Sarah Brown‑Wiley, emphasized that the transition “represents not just a change in technology but a transformation of our industry’s future.” She noted that the new plant would be “the first of its kind to bring fusion energy to the U.S. commercial grid.”

Strategic Partnerships: MIT, Commonwealth Fusion Systems, and Beyond

The fusion plant will be built in collaboration with Commonwealth Fusion Systems (CFS), a spin‑off from the Massachusetts Institute of Technology’s (MIT) Plasma Science and Fusion Center, as well as several other industry and research partners. CFS’s high‑temperature superconducting magnet technology—currently used in the Princeton Plasma Physics Laboratory’s SPARC device—will form the heart of the plant’s tokamak design.

Additional partners include TAE Technologies, a privately held startup working on a linear accelerator–based fusion concept, and the U.S. Department of Energy’s (DOE) Office of Fusion Energy Sciences. The article links to DOE’s Fusion Energy program page, which outlines federal support for early‑stage fusion projects and the strategic roadmap for commercial fusion.

TVA’s partnership with CFS is part of a broader strategy to leverage private‑sector expertise and accelerate the timeline for commercialization. By tying into MIT’s extensive research infrastructure and the proven track record of its partners, TVA hopes to sidestep many of the technical pitfalls that have plagued fusion for decades.

Funding, Timeline, and Financial Outlook

The project is slated to receive a $4.5 billion investment from TVA, with the DOE contributing an additional $800 million under the Energy Act’s fusion funding provisions. The funding mix includes federal grants, TVA’s internal capital allocations, and private equity from the partner consortium. This blended financing structure is expected to make the project one of the most well‑backed fusion ventures worldwide.

According to TVA’s public filings, the initial design and prototype phase will begin in late 2026, with a 30‑year demonstration plant slated for commissioning by 2035. Commercial operation, with a target output of 1.5 GW, is projected for 2040. While the timeline remains ambitious, the company is taking advantage of “fast‑track” DOE permitting and an already existing grid infrastructure to compress typical development cycles.

The article also links to a TVA press release that outlines the projected revenue model. The utility anticipates that the fusion plant will produce enough electricity to power roughly 400,000 homes and supply the region with a stable, low‑carbon power source that could be priced competitively with conventional coal and nuclear generation.

Environmental and Economic Implications

From an environmental standpoint, the transition to fusion promises a near‑zero‑emissions energy source that eliminates the coal ash problem that has plagued TVA’s coal plants for years. The DOE’s page linked in the Reuters article elaborates on the carbon footprint reduction and the potential for fusion to meet the U.S.’s 2030 climate targets.

Economically, the project is expected to revitalize the region. Local employment could see a boost of several thousand jobs during the construction and operational phases, according to a TVA economic impact study cited in the article. In addition, the fusion plant’s presence will foster a technology cluster that could attract further investment in advanced manufacturing, materials science, and high‑tech research.

Broader National Context

The Reuters piece contextualizes TVA’s move within the broader U.S. fusion strategy, citing the 2021 Energy Act and the DOE’s $6 billion “Fusion Energy Sciences” budget. The article notes that other utilities, such as Pacific Gas & Electric and the Electric Power Research Institute, have shown interest but have yet to commit to commercial fusion projects. In this sense, TVA’s announcement could set a precedent for other utilities seeking to diversify their generation portfolios.

The article also references a recent Brookings Institution analysis that argues commercial fusion could “reshape the entire electricity market,” underscoring the potential systemic impact of TVA’s decision. The fusion plant’s output would be fed into the regional grid, potentially reducing peak demand on existing coal and nuclear facilities.

Looking Ahead

While the technical hurdles remain daunting—fusion reactors have yet to achieve net energy gain at scale—TVA’s partnership with MIT‑affiliated CFS and the substantial federal and private backing suggest that the utility is serious about bringing the technology to fruition. If successful, the Tennessee Valley Authority’s first commercial fusion plant could become a global benchmark, accelerating the broader adoption of fusion energy and demonstrating a practical pathway for the U.S. to achieve its climate ambitions.

For now, the next few years will be a test of whether the TVA can translate decades of research, significant capital, and ambitious timelines into a functional, scalable fusion power plant that lights homes, reduces emissions, and redefines the future of electricity generation.