Bill Gates-backed Type One Energy raises $87 million ahead of $250 million Series B

Start the fusion power Energy of the first type It recently raised $87 million, TechCrunch has learned from sources familiar with the deal.

The new financing is a convertible note that brings the total investment in the startup to more than $160 million. Type 1 is also in the midst of raising a $250 million Series B at a pre-money valuation of $900 million, according to sources and later confirmed by the company.

Like other energy startups, Type One has benefited from increased demand from data centers and the electrification of the broader economy. It is expected to be used in data centers Almost three times as much electricity By 2035, while total electricity demand is expected to grow by 20% 4% annually During the next year.

Fusion energy can provide the equivalent of gigawatts of virtually limitless clean energy. Reactors work by fusing atoms, releasing massive amounts of heat and energy in the process. Power plants harvest that heat to spin turbines, similar to today’s fossil fuel facilities, but without the pollution.

Unlike fission, fusion reactors do not produce large amounts of radioactive waste. They also do not pose a risk of catastrophic collapse.

There are two main methods for fusion energy: magnetic confinement and inertial confinement. In the first case, magnets compress and control plasma, extremely hot particles that eventually fuse to form new atoms. In the latter case, the fuel pellets are compressed until they fuse, often using a laser.

The first type will use magnetic confinement, and the design is what is known as a starburst. In a stellarator, magnets are arranged in a donut-like shape, which is twisted and rotated according to the requirements of the plasma. Previously built stars have been able to control plasma for long periods of time, although none have yet been built with the intention of producing energy.

Last year, Type One signed deals with the Tennessee Valley Authority to put the startup’s first commercial power plant on the site of the former Bull Run Fossil Plant, a coal-fired power plant that retired in 2023. Infinity Two, as the power plant is called, is expected to generate 350 megawatts of electricity and could be operational in the mid-2030s, the company said.

Unlike many other startups, Type One does not plan to build the power plants or reactors themselves and sell the energy. Instead, the company will sell the underlying technology to TVA and energy providers, who will build, own and operate the plants.

The first type had previously raised A $29 million seed round In 2023 it was extended to With a total of $82.5 million In 2024. Investors in that round included Bill Gates’ Breakthrough Energy Ventures, Doral Energy Tech Ventures, and TDK Ventures.