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Pacific Fusion picked Albuquerque as the home for its planned billion-dollar fusion research facility Friday, passing over Bay Area finalists Livermore and Alameda after receiving a nearly $800 million incentive package in New Mexico.
Livermore city officials, who gave initial approval to a local version of the project concept earlier in September in the hopes of enticing Pacific Fusion, took the loss in stride in a press release late Friday afternoon.
“We extend our congratulations to Pacific Fusion and Albuquerque,” Mayor John Marchand stated. “The hard work our staff put in trying to bring this company to Livermore has made an already innovative city even more efficient and ready for future investment. Livermore is firmly on the map as a global hub for science and technology, and every company looking to pioneer the next breakthrough should know that our doors are wide open.”
“Because of our unique assets, Livermore is the best place in the world for a fusion company to succeed, and we are ready to prove it,” Marchand added.
Livermore has found itself at the center of fusion innovation since scientists at Lawrence Livermore National Laboratory’s National Ignition Facility achieved fusion ignition – also known as a scientific energy breakever – for the first time in human history in December 2022.
Pacific Fusion, founded in 2023, has been looking to capitalize on the potential of fusion energy in a big way, by developing a research and manufacturing campus including a demonstration system that aims to “achieve net facility gain — more fusion energy out than all the energy stored in the system — by 2030 … unlocking fusion energy”, according to Keith LeChien, co-founder and chief technology officer.
“Our expansion to Albuquerque grows our footprint while keeping California at the center of our R&D,” LeChien, himself a Livermore resident, told the Vine in a statement Monday. “Our Bay Area campuses in Fremont, San Leandro and Livermore are where we design, build, and test the technologies that will power the Demonstration System in New Mexico. We look forward to achieving net facility gain and for our California communities to share in that success.”
“We’re grateful to the leadership and city staff in Livermore for their outstanding engagement over the past 18 months. We deeply appreciate the time and effort they invested with us, and we will continue to be proud members of the Livermore community,” LeChien said.
Central to Albuquerque’s ultimately winning pitch to Pacific Fusion was an incentive package that included $10 million in New Mexico Local Economic Development Act money ($9 million from the state and $1 million from the city), along with $776 million in city-issued “industrial revenue bonds”.
Albuquerque city officials noted that the incentives were contingent upon the company living up to its development commitments and that Pacific Fusion would purchase and repay the bonds itself, with the city bearing no financial liability. The Albuquerque Journal reported that the IRBs will essentially provide tax exemptions for 20 years and act similarly to loans, with the company paying off the bond debt with revenue from its operations.
“The state’s expertise in advanced energy technologies, workforce that aligns with our future hiring needs, and capital-efficient environment for large projects make it a natural choice for Pacific Fusion’s strategic expansion,” LeChien said in a statement on the company’s website.
He also cited the Mesa del Sol site’s proximity to research partner Sandia National Laboratories, which is headquartered in Albuquerque and has a satellite lab in Livermore near LLNL.
The proposed 225,000-square-foot R&D campus with an estimated 200 employees seeks to unlock the future of fusion energy, “designed to deliver 100-fold higher facility gain at 10-fold lower cost (than at LLNL), a 1,000-fold leap in practical fusion performance”, LeChien said.
Landing the project was a major score for the Land of Enchantment, according to Gov. Michelle Lujan Grisham, who lauded Albuquerque’s successful bid on Friday.
“Pacific Fusion’s decision to build in New Mexico proves that our state can compete — and win — in the race to attract the most innovative companies in the world,” Lujan Grisham (D-N.M.) said. “This project will create good jobs, expand our clean-tech economy, and ensure New Mexico continues to lead in the industries of the future.”
Meanwhile, Livermore is trying to do more than just lick its wounds.
The press release pointed to positive lessons learned from turning around an expedited entitlement phase for the private 50-acre parcel in the Isabel corridor, completing a typical 12-month process in four months. City officials also promised to undertake a strategic program next year “to support innovative businesses and enhance economic vitality”.
“The opportunity to host a world-changing project like the Pacific Fusion facility speaks volumes about Livermore’s competitive position,” said Brandon Cardwell, the city’s director of innovation and economic development. “We wish Pacific Fusion the best, and we will continue to support the fusion industry, building on Livermore’s core value proposition of unparalleled talent, prime location, and history of scientific firsts.”
