Fusion & Firm Power

Zap Energy is developing a compact fusion system based on a configuration called a sheared-flow Z-pinch, which uses electrical current to compress plasma rather than large superconducting magnets or high-energy lasers. The core idea is simplicity: a smaller, less complex device that, if successfully engineered, could translate into lower capital costs and a more practical path to commercial power. The remaining challenges are primarily engineering-driven—improving repetition rate, managing electrode wear, and handling heat at scale.

We invested in Zap because global electricity demand is entering a sustained expansion. Electrification, AI-driven data center growth, industrial reshoring, and grid reliability constraints are increasing demand for firm, non-intermittent power. While renewables will continue to scale, large industrial economies require dependable generation that is not weather-dependent. Fusion remains one of the few technologies with the potential to deliver abundant, near risk-free power without the fuel price volatility associated with traditional thermal generation.

Zap's recent progress reflects how fusion has moved beyond pure science milestones toward engineering execution. The company has reported electron temperatures of 1–3 keV in its FuZE device, an important threshold in plasma performance, and continued improvements in neutron production across its systems. More importantly, Zap is now building and operating 'Century,' a high-repetition-rate test platform designed to validate plant-relevant systems such as pulsed power hardware and liquid-metal-facing components.

In early 2025, Zap completed its first milestone under the U.S. Department of Energy's Milestone-Based Fusion Development Program. The Century system operated continuously for three hours, executing 1,080 plasma shots at 0.1 Hz under DOE-specified conditions, including current levels of at least 100 kA per shot. For Overlay, Zap represents disciplined exposure to a long-duration structural shift. If fusion becomes commercially viable, it would fundamentally reshape global energy economics. We view Zap as an engineering-focused pathway toward that outcome.