Home / Business and Economy / Desert Fusion: NM Bets Big on Star Power
Desert Fusion: NM Bets Big on Star Power
12 Mar
Summary
- New Mexico invests $1 billion in fusion energy startup.
- State fund aims for new energy source via experimental tech.
- Focus on defense, advanced tech, and energy sectors.
New Mexico's second-largest sovereign wealth fund is investing $1 billion in Pacific Fusion, a startup planning a nuclear fusion research center in Albuquerque. This venture aims to unlock a new energy source using experimental technology, seeking to replicate the power of the sun and stars.
The state fund is also directing hundreds of millions towards venture funds committed to fusion development in New Mexico. This strategy is part of an effort to enhance returns within a private equity initiative, with a new venture capital push specifically targeting local innovation in defense, advanced tech, and energy.
Past state-focused investment programs have yielded mixed results, with some prior bets losing money. However, the current approach emphasizes financial returns alongside economic impact. The state has a history of attracting less private equity than other US states, trailing neighbors in GDP.
Recent investments include backing defense startups like Castelion, which is scaling production of hypersonic strike weapons, and supporting fusion energy efforts like Pacific Fusion. These initiatives leverage New Mexico's resources, including Department of Energy labs and spaceport facilities.
