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Why Jeff Bezos, Peter Thiel, and others are betting on fusion
Fortune ^ | September 28, 2015 | Brian Dumain

Posted on 10/06/2015 9:04:02 AM PDT by AZLiberty

The energy source has been long on promise and short on reality. Now private companies think they can succeed where the government has failed.

For more than half a century governments around the world have been trying to solve the challenge of nuclear fusion. In theory it could provide a cheap, clean, and almost boundless source of energy. Consider this: One tablespoon of liquid hydrogen fuel—a mix of deuterium and tritium—would produce the same energy as 28 tons of coal.

But smashing two hydrogen atoms together at 100 million degrees centigrade to create a fusion reaction has proved to be a costly and elusive endeavor. The ITER international project in France has been plagued by cost overruns—the original 5-billion-euro project is now budgeted at 13 billion euros (about $15 billion)—and its 23,000-ton ­Tokamak experimental reactor, three times heavier than the Eiffel Tower, is still many years from completion. In the U.S. the Department of Energy’s $4 billion Lawrence Livermore project, which uses lasers to smash atoms, is still deep in the experimental stage. Scientists are learning much from all this tinkering, but experts say these big projects—if they work—are at best decades away from commercialization.

That’s not soon enough if the world wants to mitigate the worst effects of climate change while providing cheap, clean energy to the poor—a point not lost on a handful of American billionaires including Jeff Bezos, Paul Allen, and Peter Thiel. These men are betting that fusion done on a small scale will be cheaper, less complex, and ready for market sooner than the big government projects. Some major corporations, such as Lockheed Martin and General Atomics, have the same idea and are working on their own versions of small-scale fusion.

America has six private-sector fusion projects underway, according to a new report by the research firm Third Way. PayPal co-founder and Silicon Valley investor Peter Thiel has backed Helion Energy of Redmond, Wash.  Microsoft MSFT 0.84% co-founder Paul Allen has put money behind Tri ­Alpha Energy in Irvine, Calif., which has reportedly raised $140 million. And Bezos Expeditions, the investment fund of Amazon AMZN -0.98% CEO Jeff Bezos, is backing a Vancouver company called General Fusion, which so far has raised $94 million.

Other well-heeled investors are sniffing around a different but related technology: cold fusion, which requires a much ­lower operating temperature. Skeptics will recall researchers Stanley Pons and Martin Fleisch­mann, who claimed in 1989 to have achieved fusion in a simple tabletop machine at room temperature. Their experiment was eventually debunked.

More recently scientists have been making some progress on a variation of this technology called low-energy nuclear reaction. That has led investors like Tom Darden, CEO of the $2.2 billion Cherokee Investment Partners, to create a North Carolina startup named Industrial Heat, which licensed the technology of Italian scientist Andrea Rossi. Last year Bill Gates visited the cold-­fusion facilities of the Italian national technology agency ENEA, but he has not invested, according to his office.

At this point no one knows which—if any—of these private-sector ventures will prevail, and achieving fusion won’t be easy. Says Glen Wurden, a team leader at the plasma physics group at Los Alamos National Laboratory: “To get funding, small companies have to promise the moon. There’s a long history where promises have been made and not kept. When you hear a private company say it will have a technology in five years, you roll your eyes.” Critics also say these startups are building on technology that was rejected decades ago by government labs or that still hasn’t been proved.

That may be so, but these entrepreneurs argue that improvements in computer technology just might make those older designs doable today. One prominent example of this trend is General Fusion, the company backed by Bezos. (Retired NASA astronaut Mark Kelly is one of the startup’s advisers, and in August the government of Malaysia led a new $22 million round of financing.) It is building on the concept of compressing fuel to heat it until it triggers a fusion reaction, an idea experi­mented with for years in large-scale government programs. At the Livermore lab, for example, lasers the length of football fields are being used to compress atoms into fusion. So far these expensive laser systems require more energy to operate than they produce. In 2002, Michel Laberge, a Canadian plasma physicist, had an idea. What if you replaced those expensive lasers with a hammer and anvil system that created a shock wave that would force the particles into a fusion reaction? Soon after, he founded General Fusion.

Hammers, too, had been tried before in government labs in the 1970s but failed. Now, thanks to advanced algorithms, modern electronics, and control systems, the hammers can hit the side of General Fusion’s sphere-shaped metal reactor precisely at the same time, creating a pressure wave that compresses the plasma into a fusion reaction at 100 million degrees centigrade. The heat is transferred into a swirling vortex of molten metal, which then gets captured by a steam generator.

General Fusion CEO Nathan Gilliland, who previously worked at Bain Capital, says his company has achieved the right speed and precision of hammers and has created stable, long-lived plasma. Now it’s working on fine-tuning the shock waves and compression so that the plasma generates more energy than it consumes. How long will that take before commercialization? Says a confident Gilliland: “We think in terms of years, not decades. We’ve demonstrated that our pathway is viable. It’s just a matter of engineering.”

The idea of entrepreneurs working in glorified garages trying to solve one of the most ambitious problems in physics sounds absurd on the surface. After all, governments have spent decades and billions without cracking fusion. Yet these startups have one thing ­going for them. Because they are working on a smaller scale they have a quicker learning cycle and, theoretically at least, could get to a solution faster and more cheaply.

There’s at least one relatively recent example the entrepreneurial set can cite: In the late 1980s the federal government said that mapping the first human genome was going to take 15 years and cost $3 billion. The private sector stepped in and did it much faster and more cheaply. There’s certainly no guarantee in this case that private industry will succeed where the government hasn’t. But after 50 years it certainly seems worth trying a different ­approach.


TOPICS: Business/Economy
KEYWORDS: energy; fusion; hotfusion
Start-ups are being spawned around hot fusion as well as cold fusion. Interesting idea about using computer-synchronized "hammers" to create shock waves to compress fuel into fusion.
1 posted on 10/06/2015 9:04:02 AM PDT by AZLiberty
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To: AZLiberty

These wealthy people can afford to make small investments in very advanced R&D. It’s kind of like the middle class buying a lotto ticket.


2 posted on 10/06/2015 9:08:46 AM PDT by oldbrowser (The kangaroos have taken over the supreme court.)
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To: AZLiberty

It worked for the Krel!


3 posted on 10/06/2015 9:10:01 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: AZLiberty

I have been tracking the progress of fusion power generation since I was in high school in 1962. Since 1962, we have “always” been just 5 years away from a practical fusion system.


4 posted on 10/06/2015 9:10:13 AM PDT by robert14 (cng)
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To: AZLiberty

Thanks for posting this.


5 posted on 10/06/2015 9:11:47 AM PDT by ifinnegan
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To: robert14

On earth it seems to work best as an explosion. But nobody would get buy-in for a plan that involved periodically setting off a fusion bomb then harvesting as much of the energy as possible somehow.


6 posted on 10/06/2015 9:20:12 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: AZLiberty

energy from hollywood?


7 posted on 10/06/2015 9:21:20 AM PDT by ConservativeDude
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To: AZLiberty
The idea of entrepreneurs working in glorified garages trying to solve one of the most ambitious problems in physics sounds absurd on the surface. After all, governments have spent decades and billions without cracking fusion. Yet these startups have one thing ­going for them. Because they are working on a smaller scale they have a quicker learning cycle and, theoretically at least, could get to a solution faster and more cheaply.

I read an article from earlier from one of the people who started one of these companies. He was working on a government fusion project, and got tired of the people treating it as a life long jobs program instead of a problem to solve. He claims that the government funded projects were managed in a way to never really succeed at generating fusion, but to always be making progress. This may be why it was always 20 years away. The excitement this time may be because people are actually trying to solve the problems.

8 posted on 10/06/2015 9:21:41 AM PDT by Vince Ferrer
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To: robert14

Probably not in our lifetime. Fusion is always “just around the corner”, but it somehow never quite gets here.


9 posted on 10/06/2015 9:25:51 AM PDT by alloysteel (Do not argue with trolls. That means they win.)
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To: AZLiberty

“One tablespoon of liquid hydrogen fuel—a mix of deuterium and tritium—would produce the same energy as 28 tons of coal. “

How many tons of coal does it take to obtain a tablespoon of a liquid hydrogen fuel mixture of deuterium and tritium?


10 posted on 10/06/2015 9:41:36 AM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: catnipman

Actually the big problem is creating Tritium.
You need a fission nuclear reactor to create it and it has a short half-life.

The D-D reaction works but only at much higher temps.


11 posted on 10/06/2015 9:51:54 AM PDT by Zathras
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To: Don Corleone

Yeah; but they also got monsters from the Id.


12 posted on 10/06/2015 10:01:47 AM PDT by 5th MEB (Progressives in the open; --- FIRE FOR EFFECT!!)
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To: AZLiberty

The Sun operates its fusion factory at 15 million degrees. Just for comparison sake.


13 posted on 10/06/2015 10:03:09 AM PDT by jwalsh07 (.)
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To: AZLiberty

Still waiting for Mr. Fusion, flying cars, and hoverboards.


14 posted on 10/06/2015 10:07:22 AM PDT by Blood of Tyrants (There's a right to gay marriage in the Constitution but there is no right of an unborn baby to life.)
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To: AZLiberty
Academic research projects into fusion would lose funding if fusion was actually achieved.

Private research projects will lose funding if they do NOT produce some sort of results, and their people will become wealthy if they achieve a breakthrough. It's all about incentives.

15 posted on 10/06/2015 10:15:21 AM PDT by PapaBear3625 (Big government is attractive to those who think that THEY will be in control of it.)
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To: HiTech RedNeck
But nobody would get buy-in for a plan that involved periodically setting off a fusion bomb then harvesting as much of the energy as possible somehow.

Want to make a bet? Global Warming and Climate Change advocates seeing their theories debunked, might want a plan that makes their theory a reality! Fusion might be the ticket to create a smoldering Earth. (Hope scientists have a good containment vessel.)

16 posted on 10/06/2015 10:31:15 AM PDT by roadcat
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To: AZLiberty

It’s the perpetual motion machine of our era.

I would much rather see thorium based research. To me, it seems to have more potential for actually working, plants could be much smaller in size, and there are not the associated dangers with other types of production. I don’t know why our country never pursued this type of reactor. I guess “the science is settled.”


17 posted on 10/06/2015 11:06:42 AM PDT by Lake Living
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