Study: Clean fusion energy could add $125 billion to California economy

A new economic study estimates that development of clean fusion energy in California could add $125 billion to the state economy and support more than 40,000 jobs.

The study released Thursday by the San Diego Regional Economic Development Corporation comes just three years after the historic achievement of fusion ignition at the Lawrence Livermore National Laboratory in Northern California, and just weeks after San Diego-based General Atomics completed giant magnets for an international fusion reactor in France.

Fusion is a nuclear reaction in which hydrogen atoms fuse into helium, releasing vast amounts of energy but no deadly radiation. It is the reaction that powers the Sun and the stars.

“With the right support, California can lead the in the commercialization of fusion energy, capturing the economic benefits that come from it while reshaping the global energy landscape,” said Eduardo Velasquez, senior director of research and economic development at the EDC. 

“EDC’s report brings into focus the regions, firms, and talent currently driving the industry, as well as the opportunities and hurdles the state faces in scaling from fusion R&D hub to a production powerhouse,” said Velasquez.

The report “Catalyzing CA’s Fusion Advantage: Roadmap to Commercialization” notes that California has already begun to establish itself as a global leader in the fusion energy industry with companies like General Atomics and TAE Technologies as well as world-leading universities.

Currently, fusion energy development accounts for approximately 4,700 jobs across California and generates $1.4 billion in annual economic output, according to the report, which cites General Atomics’ DIII-D tokomak reactor on the UC San Diego campus as an example. There are 16 companies in California working on the new technology.

“We’re proud to play a key role in advancing fusion energy here in San Diego while collaborating with partners such as the state of California, the city of San Diego, the Department of Energy, the University of California system, and national laboratories,” said Anantha Krishnan, senior vice president for the General Atomics Energy Group. 

“To realize our region and state’s full potential, California companies will need financial incentives, regulatory support, and streamlined land-zoning processes,” Krishnan said. “In addition, public-private collaborations to build test facilities and train the future fusion workforce will be critical to achieving success in commercializing fusion energy.”