ALBUQUERQUE — Pacific Fusion has signed a memorandum of understanding with the state of New Mexico to pursue a new R&D facility in Albuquerque.

The company intends to build a state-of-the-art research facility, known as the Demonstration System, that would prove a critical fusion milestone called net facility gain, where more energy is produced from a fusion reaction than the total energy stored in the system. Demonstrating these conditions is an essential step toward eventually delivering carbon-free electricity to the grid.

The project would represent a capital investment of some $1 billion and bring more than 200 long-term jobs to the state, along with hundreds more construction jobs, workforce development programs, and regional economic activity.

The company expects to make a final decision in late September 2025, contingent upon successful site selection and finalization of state incentives. The project will undergo environmental and planning reviews as part of the approval process.

Keith LeChien, co-founder and CTO at Pacific Fusion said, “New Mexico is a natural fit for this project. The Z Machine at Sandia National Laboratories helped lay the foundation for our approach, and the state’s legacy of applied physics innovation, deep talent pool, and business-friendly environment put it in a unique position to become a national leader in fusion energy innovation.”

Founded in 2023, Pacific Fusion is a fusion energy company building directly on breakthrough innovations from Sandia National Laboratories to deliver the world’s most affordable on-demand power source.

Pacific Fusion has raised more than $900 million in private capital from General Catalyst, Breakthrough Energy Ventures, and other investors.

According to the company, the Demonstration System would be a research facility, not a power plant, and would operate safely and quietly.