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Fusion company Zap Energy is raising nearly $130 million in new investments, according to an SEC filing posted Wednesday. The company declined to comment.
Everett, Wash.-based Zap is making strides to generate power through the fusion of light atoms, a process that releases energy comparable to reactions powering the sun and stars.
Although achieving fusion energy has been a complex endeavor pursued for decades, recent years have seen scientific advancements. However, no company has yet achieved commercially viable power production from fusion.
With substantial investments and advancements in computing, companies like Zap are optimistic about eventual success. Cracking commercial fusion could potentially offer an almost endless source of clean energy.
The fusion sector is attracting significant interest and investment, driven by the rising demand for reliable, carbon-free power to support data centers and AI technologies.
In 2022, Zap secured a $160 million investment led by Chris Sacca’s Lowercarbon Capital, including contributions from Bill Gates’ Breakthrough Energy Ventures.
The new investment of nearly $130 million will boost Zap’s total funding to approximately $330 million, including additional government grants.
Other Pacific Northwest companies are also attracting tech investments. OpenAI CEO Sam Altman invested $375 million in Zap’s rival, Helion Energy, also based in Everett. Jeff Bezos supports General Fusion in British Columbia, and Sacca has invested in Seattle’s Avalanche Energy.
Founded in 2017, Zap was co-launched by University of Washington professors Uri Shumlak and Brian A. Nelson, using technology developed in collaboration with Lawrence Livermore National Laboratory researchers. The third founder is entrepreneur and investor Benj Conway.
Last year, Zap gained expertise from fellow UW fusion startup CTFusion, which ceased operations due to funding issues. Three of its four co-founders joined Zap.
Zap’s fusion approach employs sheared-flow-stabilized Z-pinch technology. Its device channels electric currents through superheated plasma, creating magnetic fields that compress the plasma to conditions sufficient for fusion reactions.
The team promotes its method as simpler compared to other fusion strategies that use massive magnets and lasers.
In 2023, the company was selected by the U.S. Department of Energy as one of eight recipients of funding from the Milestone-Based Fusion Development Program, a recognition seen as a significant endorsement.
Despite this, Zap hasn’t yet achieved all its targets. Three years ago, the company predicted it could reach “scientific breakeven” — producing more energy than used to create fusion — by 2023. It hasn’t, but progress has been made, including reaching temperatures of 11 to 37 million degrees Celsius in their FuZE device, a threshold few technologies have attained.
Like others in the field, Zap is pushing forward with commercialization plans despite uncertainties. The startup is collaborating with TransAlta, which plans to close its coal plant in Southwest Washington next year. Zap is exploring converting the plant for fusion power, potentially reusing the facility’s equipment and workforce.
