Plynth's strategic investment in Zap Energy signals Middle Eastern fusion interest
The Presidents of the United States and the United Arab Emirates met at the end of September in Washington during an official visit of His Highness President Sheikh Mohamed bin Zayed to the United States.
After the visit they issued a US-UAE Joint Leaders’ Statement in which they pledged to pursue new opportunities to strengthen their economic and defence partnership; promote peace and stability across the Middle East and wider region; and deliver global leadership on issues of shared importance.
One of the issues of shared importance is the Partnership to Accelerate Clean Energy (PACE), under which fusion was mentioned.
Plynth Energy, a newly established Abu Dhabi government-owned, early stage fund, announced a strategic investment in the US-based fusion startup Zap Energy.
So, why is this significant?
What Have They Done?
Abu Dhabi government has established an early-stage fund focused on fusion technologies and supply chains—Plynth Energy—which has recently invested in the US company Zap Energy.
Zap Energy, headquartered in Seattle, has been making waves in the fusion community with its unique approach utilising sheared-flow stabilised Z-pinch technology—a design that deviates from the more conventional tokamak and stellarator models. The company’s innovative method does not rely on superconducting magnets for plasma confinement, which positions it as a potentially more cost-effective and scalable option for achieving commercial fusion.
In tandem with this investment, Plynth is positioning itself as a critical player in building out the fusion supply chain. Their focus extends beyond core fusion technologies, targeting ancillary areas such as advanced materials, precision manufacturing and plasma diagnostic systems. By nurturing a comprehensive ecosystem, Plynth aims to accelerate the development and commercialisation of fusion technology worldwide.
Why is it Impressive?
It’s the first UAE/Middle East investment in fusion energy to be very publicly announced.
“It is a very interesting event, as it marks the first time – to our knowledge – that a state-owned Arab wealth fund is exclusively dedicated for supporting fusion technologies and supply chains, something barely imagined just a few years ago,” said Amro Bader and Ghassan Antar of the Arab Fusion Energy Initiative, a non-profit entity hosted by the American University of Beirut that is currently pushing fusion energy’s profile further across the Arab world.
Bader and Antar continued: “it shall be noted that this is not the first time Arab entities invest in fusion companies. The Sovereign Wealth Fund of Kuwait, a government-owned entity, and another well-known Saudi Arabian company, both invested in fusion start-ups. But this is the first time a sovereign wealth fund is directed exclusively for fusion.”
Furthermore, the investment demonstrates the growing alignment between Middle Eastern and Western fusion efforts. It signals a willingness for collaboration and knowledge sharing, as both regions work towards the goal of achieving net-zero emissions. Initiatives like the Partnership for Accelerating Clean Energy (PACE) which is set to “catalyse $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximise climate benefits,” have laid the groundwork for deeper cooperation.
Why is it important?
The establishment of Plynth’s fusion fund signals a growing interest from Middle Eastern countries in establishing a strong foothold in the fusion energy sector—a field traditionally dominated by European and North American countries.
This move is part of a broader effort by the UAE and other Gulf states to diversify their energy portfolios, decrease dependence on fossil fuels and lead global clean energy innovation. The UAE, through entities like the Abu Dhabi Investment Authority and the Abu Dhabi National Oil Company (ADNOC), has already positioned itself as a significant player in the renewable energy space with investments in solar and wind. Fusion is the next logical step in their clean energy strategy, and Plynth’s investments aim to place the UAE at the forefront of this emerging field.
“The UAE, and Abu Dhabi in particular, has enthusiastically embraced new sources of energy,” says Stuart Allen, CEO of FusionX Group, a company that connects capital with opportunity in the fusion energy sector. “Plynth Energy is to some extent an extension of that, but it shows an impressively long-term view of energy needs and of investment diversification.”
This holistic investment strategy could ultimately enable the Middle East to become a hub for fusion technology and innovation, much like its current position in the global oil and gas industry.
Simon Woodruff, Director of Fusion Advisory Services Ltd., says, “Plynth is the first fund specifically established for fusion in the UAE. It indicates a strong interest by the UAE in fusion, and one that can help establish fusion in the Middle East. While currently it appears that investments are being made outside of the UAE, the UAE could reap economic benefits by establishing a fusion program there. Currently the investments other than Zap are undisclosed.”
This investment is part of a broader strategy to support next-generation energy technologies, underscoring the UAE's commitment to diversifying its energy portfolio and advancing clean energy solutions in alignment with its long-term sustainability goals.
“It should be noted that this comes less than a year after nearly 200 countries at the COP28 held in Dubai in December 2023, approved a global pact that calls for 'transitioning away from fossil fuels', and to quit adding carbon dioxide (CO2) to the atmosphere entirely by mid-century,” said Bader and Antar.
What’s Next?
Plynth’s investment is potentially just the beginning of a larger strategy to position the Middle East as a leader in fusion energy. The fund’s focus on fusion companies and their supply chains suggests a long-term commitment to developing the entire ecosystem needed to support fusion’s commercial rollout. This could lead to increased collaboration between Middle Eastern and international research institutions, fostering an environment ripe for innovation and breakthroughs in fusion technology.
Zap Energy, on the other hand, will benefit from the additional capital and strategic guidance provided by Plynth to accelerate its research and development efforts. With Plynth’s support, the company is expected to achieve key technical milestones necessary for building a scalable and commercially viable fusion reactor. Zap Energy’s roadmap includes the construction of a demonstration device, which, if successful, could attract further investments and partnerships.
The UAE’s interest in fusion could also attract other Middle Eastern investors and catalyse further investments in fusion technologies, research facilities and supply chain infrastructure as the region looks to establish itself as a major player in the global fusion landscape.
Amro Bader and Ghassan Antar added: “Significant challenges remain before fusion can be brought to commercial maturity on a relevant time-scale. The Arab world, with its significant human and financial capital, is well set to take a leading-role in driving fusion commercialisation forward. UAE’s Plynth could raise other Arab states’ attention and possibly proliferate further investments in fusion energy. It could even inspire these countries to establish their own fusion programs or collaborate on an Arab Fusion Energy Program. If realised, this shall certainly benefit the entirety of the field as a whole – the opportunities seem immense.”