The Milestone-Based Fusion Development Program is an ongoing program under the United States Department of Energy, office of fusion energy sciences to support the development of a fusion pilot plant (FPP) and eventually commercialize fusion power.[1][2][3] As of 2024, eight private companies have received a total of $46 million for the first 18-month period of performance. The program is planned to run for five years and culminate in one or more fusion pilot plants.
History
The need for a fusion pilot plant has been recognized throughout the program to develop fusion power. Most recently before the announcement of the Milestone-Based Fusion Development Program, in 2021 the National Academies of Sciences, Engineering, and Medicine (NASEM) released a report which highlighted the need for such a program and advised its creation.[4] In 2022 the Biden administration and DOE announced a Bold Decadal Vision for Commercial Fusion Energy which included plans to fund support for pilot plant development program.[5][6][7]
The funding opportunity announcement (FOA) was announced by the US Department of Energy in September 2022, and $50 million was earmarked for the program.[8][9]
Applications were received in December 2022.[3][10] Eight companies were selected for negotiation in May 2023. However, agreements were not signed with the awardees until more than a year later in June 2024,[11] reportedly due to concerns over how intellectual property would be handled.[12]
In June 2024, at a White House summit the Department of Energy announced that all eight companies had successfully concluded detailed milestones negotiations with the federal government and that agreements had been signed to commence the Milestone Program.[13]
The program is structured as a public–private partnership between the DOE and the awardees. The companies unlock matching funds upon completion of quantitative milestones, up to the full award amount.[10]
The program is structured in three periods of performance: One spanning the first 18 months, one spanning the second 18 months, and one spanning the remaining 24 months of the five-year term. The first period of performance will presumably end around the end of 2025, assuming a start date based on the June 2024 announcement.
Only the first period of performance has been announced and awarded. The $46 million number is for the first period of performance. Subsequent periods of performance have not as of 2024 been announced, appropriated, or awarded.
The applicants were encouraged to propose collaborations with US national laboratories, with which the DOE would contract separately and pay directly. Oak Ridge National Laboratory will work with six of the eight companies.[14]
Dispute over intellectual property
The year-long gap between the announcement of awardees and their signing agreements with the DOE was apparently due to a dispute over how companies' intellectual property would be treated under the award.[12] Reporting stated that the companies' rights to existing and subject intellectual property was not sufficiently safeguarded under the DOE's initial proposed terms. At the time of the announcement, the total private investment in Commonwealth Fusion Systems was larger than $2 billion.
^Bringing Fusion to the U.S. Grid. Committee on the Key Goals and Innovation Needed for a U.S. Fusion Pilot Plant, Board on Physics and Astronomy, Board on Energy and Environmental Systems, Nuclear and Radiation Studies Board, Division on Engineering and Physical Sciences, Division on Earth and Life Studies, National Academy of Engineering, National Academies of Sciences, Engineering, and Medicine. Washington, D.C.: National Academies Press. 2021-12-16. doi:10.17226/25991. ISBN978-0-309-68538-2.{{cite book}}: CS1 maint: others (link)