Investment appetite in the fusion energy industry continues, but divisions are also becoming clearer over listing timing and monetisation strategies. As large amounts of capital flow in, differences are growing between companies and investors over when to enter stock markets and whether to secure a revenue base before power plants are completed.

TechCrunch reported on April 19 that fusion startups raised about $1.6 billion over the past 12 months, but the industry is split over when to go public and whether companies should build separate revenue businesses before completing power plants.

TAE Technologies and General Fusion are at the centre of the debate. The two companies have recently disclosed plans in succession to enter stock markets through mergers with listed companies. With hundreds of millions of dollars needed to continue research and development, the plans also reflect an intent to offer investors an exit opportunity over the long term.

But views in the industry differ. Many officials say it is still too early for the companies to list. They cite as the main reason that the firms have not reached the “scientific breakeven” seen as a core benchmark for the fusion industry. It refers to the stage at which a fusion reaction produces more energy than is put in.

TAE Technologies announced a merger with Trump Media & Technology Group in December last year as it moved to secure funding. The deal has not yet been completed, but it secured some of the planned funds in advance, giving it room to continue its research. General Fusion is also seeking to raise hundreds of millions of dollars through a merger with a special purpose acquisition company (SPAC).

The industry’s concern is what comes after a listing. A fusion industry executive said it was hard to be confident about what could be explained at quarterly earnings calls if scientific breakeven could not be reached soon. There is concern that investor confidence could be shaken if companies have to explain quarterly results without visible technological achievements. It could affect market confidence in the broader fusion industry beyond any single company.

Differences are also growing over monetisation strategies. Some companies are moving to secure sources of revenue even before power plants are completed. TAE Technologies is generating early revenue through businesses in power electronics and radiation therapy, while Commonwealth Fusion Systems and Tokamak Energy are pursuing magnet sales.

Other companies, by contrast, see such indirect revenue as potentially weakening focus on core technology development. They point to the risk that straying from the main path of commercialising power plants could hurt long-term competitiveness.

Criteria for an appropriate listing time have also yet to be established. Various benchmarks are proposed, from reaching scientific breakeven to the commercial stage of supplying electricity to the power grid, but no company has met them so far.

Commonwealth Fusion Systems is aiming to achieve scientific breakeven next year, and the industry is also discussing the possibility that this could prompt listing talks to gather pace.

The next competition in the fusion industry is shifting beyond the size of fundraising to when the market validates companies.