Eni signs first energy company PPA for fusion energy

Eni, the Italian multinational energy company, has entered an over $1 billion PPA with Commonwealth Fusion Systems for energy from its ARC power plant due to connect to the grid in the early 2030s.

The financial and other terms of the PPA have not been released but the agreement is significant in the support and outlook on fusion in general and for Commonwealth Fusion in particular.

It also means that the ARC plant’s 400MW output is mostly accounted for, following the company’s earlier June 2025 200MW PPA with Google.

Eni, one of the first investors in Commonwealth Fusion since 2018, has indicated that the power will be fed to the national grid, similarly to other PPAs the company has entered into, rather than to power a specific facility.

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“This strategic collaboration, with a tangible commitment to the purchase of fusion energy, marks a turning point in which fusion becomes a full industrial opportunity,” said Eni CEO Claudio Descalzi.

“As energy demand grows, Eni supports the development of fusion power as a new energy paradigm capable of producing clean, safe and virtually inexhaustible energy. This international partnership confirms our commitment to making fusion energy a reality, promoting its industrialisation for a more sustainable energy future.”

Bob Mumgaard, co-founder and CEO of Commonwealth Fusion, adds that the agreement with Eni demonstrates the value of fusion energy on the grid.

“It is a big vote of confidence to have Eni, who has contributed to our execution since the beginning, buy the power we intend to make in Virginia. Our fusion power attracts diverse customers across the world – from hyperscalers to traditional energy leaders – because of the promise of clean, almost limitless energy.”

The PPA comes on the heels of an $863 million oversubscribed funding round with investors including Eni aimed to complete the SPARC demonstration machine and to progress development work on the ARC plant to be sited with Dominion Energy in Chesterfield County, Virginia.

SPARC, a magnetic confinement tokamak, is expected to achieve net fusion energy (Q>1) in 2027.

The agreement between Eni and Commonwealth Fusion is the latest of an ongoing relationship. In 2023 the two companies signed a collaboration framework agreement to accelerate fusion energy development, including operational and technological support.

Eni also has its own R&D fusion programme and as part of this is collaborating with the UKAEA on the processing and storage of tritium in the fuel cycle.