KYOTO FUSIONEERING Road to Commercialization: Japan - a new trend of fusion development and the role of startups - The 2nd IAEA WORKSHOP on Fusion Enterprises Virtual Event, 11 - 12 July 2022 Prof. Satoshi Konishi, Chief Fusioneer 12 Jul., 2022 ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. Japan's Policy on DEMO Reactor The Science and Technology Committee on Fusion Energy of MEXT published the strategies for the development of DEMO reactor. Japanese Official Policy December 2017: - Promotion of R&D for DEMO reactor - Action Plan towards DEMO reactor July 2018: - Roadmap toward DEMO reactor (first report) Phased Approach toward DEMO reactor: - Current: Pre-conceptual Design Phase - 2021: 1st Intermediate Check and Review (C&R) - Conceptual Design Phase - Within a few years after 2025: 2nd Intermediate C&R - Engineering Design Phase - In the 2030s: Final C&R - Construction Phase Roadmap toward DEMO Rector Timeline & Phases: ~2020~ Intermediate C&R (check and review) ~2025~ Intermediate C&R Third phase (~2030~) ~2035~ C&R Fourth phase (~2050~) 1 ITER project (run by int'l collaboration): Construction phase -> First Plasma -> Operation phase -> Plasma control test toward DT burning -> DT burning and ignition -> Burn control & engineering test -> Long plasma burning at energy gain factor more than 10 BA activities (phase II) (run by int'l collaboration) 2 JT-60SA (part of BA activities): Initial research phase (First Plasma) -> Integrated research phase -> Extended research phase 3 Fusion neutron source (run also thru int'l collaboration): Technology demonstration & engineering design -> Construction -> Fusion neutron irradiation test -> Acquisition of irradiation data 4 DEMO R&D (run also thru int'l collaboration): Concept design & elemental technology development -> Engineering design & full-scale technology development (DEMO design activities, integrated plant simulator, safety research & tritium handling, reactor engineering and foundation research) -> Completion of engineering design based on prospective social acceptability & economic feasibility -> Construction & operation of DEMO 9 4th phase (DEMO) Decision to transition -> Validation of steady-state operation -> Ready to commercialize 5 Blanket development: Safety demonstration test -> Engineering test (test blanket module (TBM)) -> Validation of tritium recycle 6 Research on large helical devices 7 Research on high-power lasers (Advancement from academic research to development research also anticipated) 8 Social relations activities: Social relations activities toward realization of the DEMO Broader Approach for Realization of Fusion BA Activities: 1) Taking Initiative of Fusion Research 2) Development of Fundamental Fusion Technology 3) Human Resource Development ITER: Demonstration of Scientific and Technological Feasibility of Fusion Energy (Q = 10, DT Burning 300-500s) DEMO: Demonstration of Fusion Power Plant Broader Approach Activities: - Rokkasho, Aomori: IFERC, IFMIF/EVEDA - Naka, Ibaraki: Satellite Tokamak (JT-60SA) JT-60: Q = 1.25, Ti(0) = 45keV Fusion Technology: Material, Blanket, R&D (Coils, VV, Heating) Japanese fusion program 1. ITER - for the burning plasma experiments - for technology development - Blanket program by TBM 2. Broader Approach - JT60SA, IFMIF, Fusion technology 3. DEMO design team activity - with small scale collaboration with university and industry No commercialization considered by policy yet. ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. Commercialization in Japan? Japan is not ready for commercialization yet. - Still in research phase - Industry completing ITER; no following sales - Blanket program by TBM Commercialization requires.. - Entity that launch the project with firm decision - Finance and - Industry that can make it with workforce - Supply chain - Technology and Innovation Kyoto Fusioneering Ltd. (KF) has been founded in 2019 for the commercial fusion business from Kyoto University. This company contributes world fusion industrialization. Role and methodology of private fusion companies are significantly different from public fusion programs. Competition of fusion business has already started! Ex-fusion and Helical Fusion followed as startups. ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. Carbon Budget (by IEA) Carbon budget of post-Paris agreement runs out after 2040. - What we will run out is not fossil resource, but carbon budget. - Oil and coal cannot be sold not because of high price, but High penalty. - Only 1 Tton left. - "Negative Carbon" will be Most precious energy resource beyond 2040. - CCS resource is more critical than fossil fuels. - Fusion can provide alternative CCS technology. Source: IEA (2015). Global energy-related CO2 emissions extrapolating from current national emissions pledges under the UNFCC, compared to remaining carbon budget for a less than 50% chance of keeping to 2°C. Stranded Assets Fusion Power Associates 40th annual meeting 2019 "Divestment" from carbon to technology is happening. - Fossil resources become "stranded" because they cannot be sold - Many of the large scale long term investment (bond) in the world, particularly pension fund is highly dependent on fossil assets - Value of the fossil assets drops under low carbon economy Current situation of fusion Current situation -> Drastic Change - Ventures into big science field (e.g., SpaceX) >> nuclear fusion as their ESG investment and divestment - Traditional research results and new enabling technologies >> Bright outlook on practical use of fusion reactors - Paris Agreement -> Carbon neutrality / COVID-19 -> Green New Deal >> Governments are willing to create a fusion industry in their country Path to accelerate fusion electricity: - UK: 2040 (In 20 years) - Tokamak Energy - US: 2035 (In 15 years) - Commonwealth Fusion Systems (In 8 years) Kyoto Fusioneering Ltd. We accelerate the development of high performance, commercially viable fusion plant components associated with power generation and fuel cycle. Locations: - Tokyo, Japan - Kyoto, Japan - Reading, UK - TBA, US (in 2022) No. of Staff: 50 (full and temporary) Funding to Date: 17 million USD Foundation: 2019 ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. KF Mission To accelerate development of high performance, commercially viable reactor technologies - associated with power generation and fuel cycle - for the rapid expansion of the budding fusion industry Particular emphasis on: - plant technology - fuel cycle and supply chain - energy conversion, alternative fuel and CARBON SEQUESTRATION ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. What Startup Company Sells Company itself is the product - Shared will by investors and company members accomplishes the objective. - Growth => Return of the Investment - Gather and organize the human resources, materials, technology and knowledge - Establish a body entity to build a fusion plant - Innovation => Research, Development, Test, Failure, Improvement... => This process makes the value of company => Return of Investment ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. CONFIDENTIAL Role of Startup companies Innovation - Original, Innovative idea - Test, fail and improve with fast cycle - Cutting edge technology with high risks - To take risk and control is the mission <=> Public program and Big company do not take risks Large projects are usually conservative and slow to move Modern industry expects startups to try challenging technology (many may fail ...) ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. CONFIDENTIAL KF's Business Model KF provides technology for fusion energy: - Blanket - Conversion - Application - Fuel cycle - Device Some comes from Japanese industry. Fusion developers globally are working on power-producing plasmas & related tech. Kyoto Fusioneering is focused on key reactor technologies and engineering. Reactor component flow: Plasma facing components, Superconducting Magnet, Gyrotron, DT Plasma, Blanket, Heat Exchanger, Coolant, Steam etc., Turbine Generator, Electric Power, Condenser, Divertor, Helium ash pumping, Sea water -> Deuterium Extractor -> Refueling -> Tritium Extractor -> DT Return. Fusion startups Plasma, device, plant and consumer - A number of "Big" fusion companies encompass Fusion reaction - Many small companies sell devices (only) - Kyoto Fusioneering provides energy conversion and fuel cycle technology - Unique in fusion industry - Fusion businesses will have to respond to: - questions to return investments to sponsors - expectation of public how fusion would provide energy products and reduce carbon emission ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. CONFIDENTIAL Sustainable energy system with fusion-biomass - Desalination of Sea water via heat - Irrigation to forests and farm - Farm waste and Woody biomass (CxHyOz)n - Fusion plant heat -> Biomass gasification - Atmosphere CO2 Capture and reduction, CO2 absorption - Restoration of Environment, Forest and farmland - Bio-fuels, PV, FC, Electricity in future grid - Charcoal -> Carbon sequestration (Returning the carbon from air to coal mines) - Grid parity Electricity and stabilization Fusion requires a "social device" What makes fusion Real? - Rapidly growing team of workforce - Collect investment - Organizing Technology and industries - Knowledge, skill, experience, and business network - Exchanging human resource, migration from different industry area - Strong, flexible and fast decision making Organize the social expectation for fusion ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. CONFIDENTIAL Technical readiness to improve KF's R&D domain | 2021 TRL | 2026 TRL | Market size in 2026: - System: SiC Heat Exchanger | 5 | 7 - Turbine: Lithium Lead Droplet Thermal Tritium Recovery | 4 | 7 | $1B - Fuel Handling: - Liquid Metal Diffusion Pump | 7 | 9 | $1B - Hydrogen Isotope Separation Pump | 3 | 7 - Blanket: - SCYLLA© Blanket | 3 | 6 - Solid Propagation Material & H Permeation Properties | 3 | 6 | $500M - Li-Pb Impurity control | 3 | 7 - Li-Pb • Low activation ferritic steel coexistence | 3 | 7 - Li-Pb Simulation of Tritium production | 5 | 9 | $1B - SiC-Hydrogen isotope permeation diffusion behaviour | 3 | 7 - Li-Pb-Hydrogen isotope behaviour | 4 | 7 - Plasma Heating: Gyrotron | 7 | 10 1) TRL = Technology Readiness Levels Conclusion Fusion requires Social challenge - Ultimate objective is shared: Sustainable energy. Now public and private collaborate. - Human resource for fusion is the key. - Science and social activity (business) found another path for rapid development. - Industrialization requires startup companies. - Fusion business has already launched in the world, and Japan is about to be aware. ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. Thank you! FUSION for the FUTURE KYOTO FUSIONEERING ©2021 Kyoto Fusioneering Ltd. All Rights Reserved. CONFIDENTIAL