Google has taken a significant step into the clean energy sector, announcing a strategic partnership with Commonwealth Fusion Systems, marking its first commercial commitment to fusion energy.

The tech giant, will purchase 200 megawatts of clean fusion power from CFS’s ARC facility in Chesterfield County, Virginia, touted as the world’s first grid-scale fusion power plant.

Fusion is a process in which light atomic nuclei are heated to temperatures exceeding 100 million degrees Celsius.

At these extreme temperatures, the fuel becomes a plasma, enabling the nuclei to fuse and release substantial amounts of energy. This energy can then be harnessed to generate carbon-free electricity.

CFS, Massachusetts Institute of Technology spinoff, is one of several companies striving to achieve commercial-scale fusion energy. Google has also invested in other ventures pursuing this breakthrough technology.

Set to be operational in the early 2030s, the ARC plant is expected to generate 400 megawatts of zero-carbon energy, sufficient to power large industrial operations or approximately 150,000 homes.

The deal also includes an option for Google to acquire power from future ARC plants, signaling confidence in fusion’s potential as a sustainable energy source.

“We’re excited to make this longer-term bet on a technology with transformative potential to meet the world’s energy demand, and support CFS in their effort to reach their scientific and engineering milestones needed to get there,” Michael Terrell, head of advanced energy at Google, said in a statement.

In addition to the power purchase agreement, Google, an investor in CFS since 2021, has increased its financial stake in the Devens, Massachusetts-based company.

Financial details of the agreement were not disclosed