Authored by Nadia Schadlow & Craig Mundie via The Epoch Times (emphasis ours),
American policymakers have been highlighting the loss or potential loss of crucial competitive sectors to China for years, such as 5G telecommunications networks, solar panels, advanced manufacturing, and quantum computing. Recent reports indicated that China is outspending the United States on fusion energy and may surpass U.S. capabilities in three to four years. This is a trend that the United States cannot afford to ignore.
The advancement of fusion technology is crucial for providing reliable, carbon-free electricity for the growing global economy. This will have significant geopolitical implications. Allowing China to lead in fusion technology and its large-scale deployment could give Beijing a central role in the energy geopolitics of the future.
Fusion is the process where two atoms combine to release immense amounts of energy. Some new fusion designs generate superheated plasma reaching temperatures of up to 100 million degrees Celsius, producing energy with minimal radiation risks.
For decades, fusion has been a concept from science fiction due to the difficulty of replicating the sun’s physics in a controlled environment on Earth. However, in recent years, scientists and engineers working on various fusion production models have made significant progress on multiple challenging problems at a faster pace than commonly perceived and reflected in U.S. policy.
The progress in key “adjacent technologies” that assist in managing the hot plasma in fusion reactions is as vital as the physics breakthroughs. Advancements in fiber optics, semiconductors, and computing, including AI, have played a critical role in this progress. These developments have enabled different fusion architectures and accelerated progress. Advanced fiber optics eliminate concerns about electromagnetic interference, while powerful computers facilitate the precise coordination of fusion reactions thousands of times per second.
Thanks to American ingenuity and determination, the era of fusion is now. When combined with private sector investments, it becomes a potent force. However, the United States risks losing this opportunity to China if immediate steps are not taken to expedite large-scale manufacturing and deployment.
Firstly, fusion must be recognized as a fundamental element of the transition to clean energy. While the focus has predominantly been on renewable sources like solar and wind, which do not address the issue of intermittent energy supply, fusion has been overlooked. A 2022 Department of Energy report proposed a strategy for securing supply chains in a “Robust Clean Energy Transition” without mentioning fusion. The Biden Administration’s “Decadal Vision” for commercial fusion aims to correct this oversight, but broader acceptance of fusion is necessary for its integration into the global energy mix.
Secondly, the U.S. government must establish a regulatory framework that distinguishes modern fusion technology from traditional nuclear energy and allows for widespread deployment. The Nuclear Regulatory Commission, responsible for matters related to fission and fusion energy, has taken initial steps. In April 2023, the Commission recognized fusion energy as a distinct technology from nuclear fission. The U.K. government also acknowledged the “fundamental differences between nuclear fission and fusion” and exempted fusion energy facilities from nuclear regulations. These actions are crucial for creating a regulatory structure that enables U.S. companies to mass-produce fusion generators. Delaying plans for power plant deployment for a decade is not an option. Similar to the streamlined approval process for airplane designs in the airline industry, U.S. fusion companies must be able to manufacture generators efficiently in large-scale facilities.
Scaling up fusion generators will also drive American manufacturing growth. However, the U.S. must produce the necessary components. While the focus is largely on cutting-edge microchips for computing – predominantly manufactured in Taiwan – it is equally essential for the U.S. and its allies to produce the other semiconductors required for fusion’s complex physics synthesis. Currently, a significant portion of high-power semiconductor production and innovation occurs outside the United States.
Thirdly, loan programs and tax incentives that currently benefit renewables should be extended to include fusion. Presently, manufacturing tax credits favor renewables and exclude fusion. These programs, along with various Department of Energy initiatives, need to prioritize fusion to accelerate its development.
In the 19th century, major powers raced to develop technology and secure petroleum resources globally to establish a firm foothold in the energy landscape of the future. A similar race is unfolding today. The electrification drive for economic progress, coupled with the substantial energy demands of generative AI, will have profound geostrategic implications. Beijing understands that fusion offers virtually limitless energy and achieving it at scale would not only provide China with the energy independence it seeks but also establish it as a key energy supplier worldwide.
Fusion represents a monumental opportunity akin to a moonshot. Missing out on this opportunity is not an option.
Nadia Schadlow is a Senior Fellow at the Hudson Institute. Craig Mundie previously served as the Chief Research and Strategy Officer at Microsoft. Both are strategic advisors to Helion Energy, a U.S.-based fusion energy company.
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