Fusion firm Type One Energy has raised a $200m Series B to build a test machine and then a 400MW power plant on an old coal site in Tennessee.
Type One Energy has closed a $200m Series B to push its Tennessee fusion plant towards construction. Breakthrough Energy Ventures and Clutterbuck Capital co-led the round. Lowercarbon Capital, Siemens Energy Ventures and SiteGround Capital joined as new backers.
The cash will fund work on its FusionDirect tech and on Project Infinity. That project sits at the Bull Run site in Clinton, east Tennessee, run by the Tennessee Valley Authority (TVA). Bull Run stopped burning coal in December 2023. So the project gets a site with a long history of making power.
Two machines on one site
Project Infinity has two stages. First comes Infinity One, a test stellarator that Type One plans to switch on in 2029. Next comes Infinity Two, a 400MW plant due to send power to the grid in 2034.
A stellarator uses twisted magnets to hold a hot plasma in place. That sets it apart from the tokamak, the more common design in fusion. Type One is betting its version can run steadily enough for a utility.
The TVA signed a letter of intent for Infinity Two in September 2025. Under Type One’s model, it sells its tech to utilities such as the TVA. They would then build, own and run the plants.
A licence and a growing war chest
The rules have moved too. On 31 August, Tennessee’s environment department issued the state’s first licence just for fusion. That lets phase one of Project Infinity begin.
Before this round, Type One had raised more than $160m. That includes an $87m convertible note in January. Breakthrough Energy Ventures has backed it since its seed round in 2023.
In August, it also signed a deal with Oak Ridge National Laboratory on the fusion fuel cycle. Meanwhile, Bernard Looney, the former BP boss, joined its board in June. Christofer Mowry, Type One’s chief executive, said the cash would help it “deliver the first commercial fusion power plant at TVA’s Bull Run site”.
What investors expect from fusion
The lead backer sees a shift in the sector. “Fusion is approaching the point where deployment, not discovery, defines the challenge,” said Carmichael Roberts, who co-leads the investment committee at Breakthrough Energy Ventures.
Siemens Energy Ventures sees promise too. “Fusion has the potential to become an important source of reliable, low-carbon energy at scale,” said Enrique Gonzalez Zanetich, a partner at the fund. Its stake also ties Type One to a big maker of power kit.
Meanwhile, rivals are raising large sums. Commonwealth Fusion Systems, for one, raised another $1bn for commercial fusion this year. Helion Energy took $465m at a $15.5bn value in June, while Proxima Fusion raised €411m in July. Thea Energy added $100m in May.
The Fusion Industry Association says 56 fusion firms raised $4.48bn in the 12 months to July 2026. Even so, the bills are large. In one industry survey, respondents put the average cost of a plant at $2.7bn, within a range of $100m to $10.9bn. On that basis, this round covers only a small slice of one plant.
A design built to travel
Type One is also looking beyond the US. In May, it formed the UK Infinity Fusion Consortium with Tokamak Energy and AECOM. The group wants a UK plant based on the same design.
The road to 2034
Type One now has a site, a state licence and a utility partner in Tennessee. Still, the hard part lies ahead. It must switch on Infinity One on time and prove a stellarator can run well at scale.
If that works, the Tennessee fusion plant would give the TVA a new source of firm power on an old coal site. For now, 2034 is a target. The test machine will show whether that date holds for the Tennessee fusion plant.
