TAE secures helium-3 fuel option for 50 MWe fusion plant

TAE Technologies signed a helium-3 fuel supply agreement with Black Moon Energy Corporation, securing an alternative fuel source for its planned 50 MWe Da Vinci fusion power plant expected to begin operations in 2031.

"This agreement can facilitate our path to power by providing an alternative fuel supply option," Michl Binderbauer, CEO of TAE Technologies, said. "TAE has a high degree of flexibility to select from the most cost-competitive fuel cycle, whereas many other fusion machines are able to operate only on the deuterium-tritium cycle."

TAE's field-reversed configuration (FRC) approach — a proprietary magnetic confinement design — allows the company to run on either deuterium-tritium or helium-3 fuel. Black Moon Energy plans to execute one robotic lunar delineation mission within five years to collect data and de-risk a commercial-scale helium-3 production operation. The privately held company also targets helium-3 demand from quantum computing, security protocols, and medical diagnostics.

The fuel supply agreement strengthens TAE's path to commercialization as it advances its previously announced business combination with Trump Media & Technology Group (Nasdaq: DJT). TAE expects to file a Form S-4 with the SEC and anticipates closing before the end of 2026, subject to regulatory approvals.

Helium-3's Scarcity Problem

After nearly three decades of R&D and five fusion machines, TAE is preparing to construct Da Vinci, its first fusion power plant expected to generate 50 MWe. A site location is expected to be selected later this year, with future facilities designed to scale to 350-500 MWe.

The helium-3 agreement addresses a critical supply chain gap for fusion fuels. Most fusion developers — including Commonwealth Fusion Systems, which is building a deuterium-tritium tokamak — are locked into fuel cycles that produce high-energy neutrons, complicating materials engineering. Helium-3 fusion produces fewer neutrons, potentially simplifying reactor design, but the isotope is scarce on Earth. Black Moon's lunar extraction plan targets the moon's regolith, where helium-3 has been deposited by solar wind over billions of years.

"Developing a future supply chain for fusion fuels is a critical component of bringing fusion power to market," David Warden, CEO of Black Moon Energy Corporation, said. "By working with TAE, we are helping establish the commercial framework needed to support next-generation energy systems."

TAE's sixth-generation machine, Norm, is currently supporting the development of Da Vinci. The company also operates TAE Power Solutions and TAE Life Sciences as near-term commercial spinoffs from its fusion research. TAE has separately partnered with the UK Atomic Energy Authority to advance core fusion technology, according to a July announcement.

Da Vinci: 50 MWe by 2031

The agreement adds a supply-chain hedge to TAE's commercial thesis as it prepares to merge with TMTG. For investors tracking the fusion sector, the deal shows that fuel logistics — not just reactor physics — are becoming a competitive differentiator. TAE's ability to switch between fuel cycles could give it a cost advantage if helium-3 becomes commercially viable, while competitors locked into deuterium-tritium would face conversion costs.

TAE's FRC design, which confines plasma in a self-organizing magnetic field structure, has been tested across five successive machines. The company's path to commercial power depends on demonstrating sustained fusion gain at Da Vinci, with the plant serving as the foundation for future 350-500 MWe facilities.

Beyond fusion, helium-3 has applications in quantum computing, cryogenics, and medical imaging. Black Moon's dual-track strategy — supplying both fusion fuel and industrial helium-3 — could create revenue streams before Da Vinci comes online, reducing the risk profile of its lunar mining venture.

The fusion sector has attracted significant private investment in recent years, with companies like Commonwealth Fusion Systems and Helion Energy pursuing different reactor architectures. TAE's fuel flexibility sets it apart from most peers, but the company still faces the same fundamental challenge as the rest of the sector: proving that fusion can generate electricity at grid-competitive costs. Da Vinci's 50 MWe output, while modest compared to conventional nuclear plants, would mark the first commercial-scale fusion facility if delivered on schedule.

This article is for informational purposes only and does not constitute investment advice.