(Yicai) July 14 -- ENN Fusion Energy Technology, a Chinese firm seeking to replicate the atomic fusion process that powers the sun and stars, has seen its valuation top CNY10.6 billion (USD1.6 billion) after its first financing round.

The Series Pre-A fundraiser was led by Longxin Private Equity Venture Capital Fund Management, CAS Star, an incubator backed by the Chinese Academy of Sciences, and venture capital firm MPCi, Beijing-based ENN Fusion Energy announced yesterday, without disclosing the amount raised. CDH Investments and Cathay Capital also participated.

The proceeds will be used to build and commission the Helong-2, a third-generation spherical torus proton-boron fusion device, as well as upgrade core technology and grow ENN Fusion’s already 300-person research and development team, so as to accelerate the commercialization of STPBF technology, the company said.

Helong-2 is intended to overcome key challenges related to energy gain and systemic technical engineering in proton-boron fusion, providing the technical and engineering foundation for the technology’s commercialization, according to ENN Fusion's research and development timeline. 

The project is targeted for completion by the end of next year, with the goal of powering the world's first electric light generated by proton-boron fusion energy by 2030.

ENN Fusion was set up last December by urban gas supplier ENN Group to fully undertake its fusion R&D activities and accelerate the commercialization of fusion energy. The unit aims to achieve commercial demonstration operations of a proton-boron fusion reactor by 2035, enabling low-cost electricity generation.

Unlike today's nuclear power reactors, which split atoms apart, fusion devices join them together, with the goal of producing abundant, carbon-free electricity using relatively small amounts of fuel.

To transition towards clean energy, ENN has been developing fusion technology since 2017, investing over CNY4 billion (USD590 million) to establish the Xuanlong-50 and the Xuanlong-50U experimental devices.

Set up in 1989, ENN provides energy to 32.8 million households and 316,000 corporate clients across 22 Chinese provinces. The Langfang-based company has four listed subsidiaries: ENN Energy Holdings, ENN Natural Gas, ENC Digital Technology, and Xizang Tourism.

Editor: Martin Kadiev