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U.S. fusion breakthrough could change world's energy future

On Tuesday, the head of the Department of Energy and other federal scientific leaders announced that a fusion reaction run at the Lawrence Livermore National Laboratory in California achieved net energy, meaning the reaction generated more energy than was put in to initiate the reaction. It is the first time humankind has achieved this landmark.

Fusion is the way that the sun makes power, but recreating a useful fusion reaction here on earth has eluded scientists for decades. Achieving net positive energy paves the way for fusion to move from a lab science to a usable energy source, although large scale commercialization of fusion could still be decades away.

Fusion is particularly attractive given the increasing urgency of climate change because if it can be commercialized at scale, it produces no carbon emissions, nor does it produce the long-lasting nuclear waste associated with nuclear fission, which is the type of nuclear energy used to make energy today.

The National Ignition Facility target chamber at the Lawrence Livermore National Laboratory is where scientists shoot lasers and watch and measure what happens when those lasers collide on a fuel source. Temperatures of 100 million degrees and pressures extreme enough to compress a target up to 100 times the density of lead are created in this facility.

Photo by Damien Jemison/ Lawrence Livermore National Laboratory

“Monday, December 5, 2022 was an important day in science,” Jill Hruby, the National Nuclear Security Administration Administrator, said at a press conference announcing the news on Tuesday in Washington D.C. “Reaching ignition in a controlled fusion experiment is an achievement that has come after more than 60 years of global research, development, engineering and experimentation.”

Reaching ignition means the fusion experiment produced more energy from fusion than the laser energy that used to drive the reaction. Since the experiment, the team has been analyzing data to be able to make this official announcement.

“This is important. Earlier results were records, but not yet producing more energy out than was put in,” Andrew Holland, the CEO of the industry’s trade group, the Fusion Industry Association, told CNBC. “For the first time on Earth, scientists have confirmed a fusion energy experiment released more power than it takes to initiate, proving the physical basis for fusion energy. This will lead fusion to be a safe and sustainable energy source in the near future.”

In the experiment on Dec. 5, about two megajoules (a unit of energy) went into the reaction and about three megajoules came out, said Marvin Adams, Deputy Administrator for Defense Programs at the National Nuclear Security Administration. “A gain of 1.5,” Adams said.

For the experiment, super high powered lasers are all directed at a very tiny fuel target at the National Ignition Facility at the Lawrence Livermore National Laboratory. “During experiments, 192 high energy lasers converge on a target about the size of a peppercorn heating a capsule of deuterium and tritium to over 3 million degrees Celsius and briefly simulating the conditions of a star,” Hruby said.

The main mission of the National Lab is studying nuclear power for use in national defense, and this nuclear fusion research is part of an effort established in 1996 by then President Clinton to maintain confidence in the safety of nuclear weapons stockpiles without full-scale nuclear testing.

But this discovery has massive implications for clean energy, too. In addition to the national security work, “we have taken the first tentative steps towards a clean energy source that could revolutionize the world,” Hruby said.

While this scientific breakthrough that is being celebrated at the highest levels of government, it will be many years before fusion power plants are likely to provide clean abundant energy.

“This is one igniting capsule, one time. And to realize commercial fusion energy, you have to do many things. You have to be able to produce many, many fusion ignition events per minute,” Kim Budil, the director of the Lawrence Livermore Lab, said on Tuesday.

“You have to have a robust system of drivers to enable that. So, you know, probably decades. Not six decades, I don’t think. Not five decades, which is what we used to say. I think it’s moving into the foreground and probably, with concerted effort and investment, a few decades of research on the underlying technologies could put us in a position to build a power plant.”

Omar A. Hurricane, Chief Scientist for the Inertial Confinement Fusion Program at Lawrence Livermore, explained, “What remains to be done from here is largely engineering, of increasing the laser energy efficiency and increasing the target energy gain with further target optimizations.”

Hurricane added, “This new result does indeed bring commercial fusion closer, as it demonstrates that there are no fundamental physics obstacles. It is starting to feel like we are entering the ‘Fusion Age.'”

One step forward in the ‘Fusion Age’

Interest in fusion has increased dramatically in recent years as concerns about climate change and energy security have become more acute.

More than 90 nuclear power reactors currently operate in the United States, but those nuclear reactors employ nuclear fission, which is when a neutron smashes into a larger atom, causing it to split into two smaller atoms and releasing a lot of energy. Nuclear fission reactions do not release any carbon dioxide emissions and therefore are considered clean energy, according to the U.S. Department of Energy.

The United States got approximately 19 percent of its utility-scale electricity generation from those nuclear power plants in 2021, according to the U.S. Energy Information Administration, and the energy from nuclear fission reactors represents half of the clean power generated in the United States, according to the Department of Energy.

However, those reactors generate long-lasting nuclear radioactive waste, and most countries, including the United States, currently have no long-term storage facilities for that waste. Efforts to build a permanent, underground geologic storage facility for nuclear waste have thus far been stymied in the United States.

Fusion happens when two atoms slam together to form a heavier atom, releasing huge amounts of energy without generating carbon dioxide emissions or long-lasting nuclear waste. But it’s proven extremely challenging to sustain a fusion reaction here on earth, and scientists have been trying for decades. In particular, it requires massive amounts of energy to generate fusion on reactions, and until this experiment, nobody had demonstrated the ability to get more energy out of the reaction than it takes to power it.

“Scientists have struggled to show that fusion can release more energy out than is put in since the 1950s,” plasma physicist Arthur Turrell told CNBC.

“During those decades, every time anyone has asked for funding for developing fusion power, the response has always been ‘first, you must show that it works in principle,'” said Turrell, who is also the author of The Star Builders. “That is, you must show that a fusion experiment can produce more energy than it uses. The researchers at Lawrence Livermore have done this for the first time ever.”

Fusion is already a hot space for climate and energy investors — so far, investors have poured almost $5 billion in investment into private fusion energy startups, according to the Fusion Industry Association, and more than half of that has been since since the second quarter of 2021.

“Everyone in the laser fusion (or inertial confinement fusion) community has been focused on getting to more energy out than in on a single experiment, because that is the key to showing the proof of principle and unlocking further investment and interest,” Turrell told CNBC.

Indeed, the private fusion industry is seeing this as a win.

“Now, the privately funded fusion industry will take the next steps, turning experimental results like this into a viable source of clean, safe energy,” Holland told CNBC. “In short, this will show the world that fusion is not science fiction: it will soon be a viable source of energy. Of course there are still many steps between these experimental results and fusion power plants, but this is an important milestone that brings us closer to the day when fusion will provide the world with clean, safe, and abundant energy.”

How nuclear power is changing

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Anne Wojcicki has a new offer to take 23andMe private, this time for $74.7 million

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Anne Wojcicki has a new offer to take 23andMe private, this time for .7 million

Anne Wojcicki attends the WSJ Magazine Style & Tech Dinner in Atherton, California, on March 15, 2023.

Kelly Sullivan | Getty Images Entertainment | Getty Images

23andMe CEO Anne Wojcicki and New Mountain Capital have submitted a proposal to take the embattled genetic testing company private, according to a Friday filing with the U.S. Securities and Exchange Commission.

Wojcicki and New Mountain have offered to acquire all of 23andMe’s outstanding shares in cash for $2.53 per share, or an equity value of approximately $74.7 million. The company’s stock closed at $2.42 on Friday with a market cap of about $65 million.

The offer comes after a turbulent year for 23andMe, with the stock losing more than 80% of its value in 2024. In January, the company announced plans to explore strategic alternatives, which could include a sale of the company or its assets, a restructuring or a business combination. 

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23andMe has a special committee of independent directors in place to evaluate potential paths forward. The company appointed three new independent directors to its board in October after all seven of its previous directors abruptly resigned the prior month. The special committee has to approve Wojcicki and New Mountain’s proposal.

“We believe that our Proposal provides compelling value and immediate liquidity to the Company’s public stockholders,” Wojcicki and Matthew Holt, managing director and president of private equity at New Mountain, wrote in a letter to the special committee on Thursday.

Wojcicki previously submitted a proposal to take the company private for 40 cents per share in July, but it was rejected by the special committee, in part because the members said it lacked committed financing and did not provide a premium to the closing price at the time.

Wojcicki and New Mountain are willing to provide secured debt financing to fund 23andMe’s operations through the transaction’s closing, the filing said. New Mountain is based in New York and has $55 billion of assets under management, according to its website.

23andMe declined to comment.

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Shares of Hims & Hers tumble 23% after FDA says semaglutide is no longer in shortage

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Shares of Hims & Hers tumble 23% after FDA says semaglutide is no longer in shortage

Hims & Hers

Shares of Hims & Hers Health tumbled more than 23% on Friday after the U.S. Food and Drug Administration announced that the shortage of semaglutide injection products has been resolved.

Semaglutide is the active ingredient in Novo Nordisk‘s blockbuster weight loss drug Wegovy and diabetes treatment Ozempic. Those medications are part of a class of drugs called GLP-1s, and demand for the treatments has exploded in recent years. As a result, digital health companies such as Hims & Hers have been prescribing compounded semaglutide as an alternative for patients who are navigating volatile supply hurdles and insurance obstacles.

Compounded drugs are custom-made alternatives to brand-name drugs designed to meet a specific patient’s needs, and compounders are allowed to produce them when brand-name treatments are in shortage. The FDA doesn’t review the safety and efficacy of compounded products.

Hims & Hers began offering compounded semaglutide to patients in May, and it owns compounding pharmacies that produce the medications.

Compounded medications are typically much cheaper than their branded counterparts. Hims & Hers sells compounded semaglutide for less than $200 per month, while Ozempic and Wegovy both cost around $1,000 per month without insurance.

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The FDA said Friday that it will start taking action against compounders for violations in the next 60 to 90 days, depending on the type of facility, in order to “avoid unnecessary disruption to patient treatment.”

“Now that the FDA has determined the drug shortage for semaglutide has been resolved, we will continue to offer access to personalized treatments as allowed by law to meet patient needs,” Hims & Hers CEO Andrew Dudum posted Friday on X. “We’re also closely monitoring potential future shortages, as Novo Nordisk stated two weeks ago that it would continue to have ‘capacity limitations’ and ‘expected continued periodic supply constraints and related drug shortage notifications.'”

Him & Hers’ weight loss offerings have been a massive hit with investors. Shares of the company climbed more than 200% last year, and the stock is already up more than 100% this year despite Friday’s move.

Even before it added compounded GLP-1s to its portfolio, the company said in its 2023 fourth-quarter earnings call that it expects its weight loss program to bring in more than $100 million in revenue by the end of 2025.

Despite the turbulent regulatory landscape, Hims & Hers has showed no signs of slowing down.

On Friday, the company announced it has acquired a U.S.-based peptide facility that will “further verticalize the company’s long-term ability to deliver personalized medications.” Hims & Hers will explore advances across metabolic optimization, recovery science, biological resistances, cognitive performance and preventative health through the acquisition, the company said.

That move comes just days after Hims & Hers also bought Trybe Labs, the New Jersey-based at-home lab testing facility. Trybe Labs will allow Hims & Hers to perform at-home blood draws and more comprehensive pretreatment testing.

Hims & Hers did not disclose the terms of either deal.

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Tesla recalls more than 375,000 vehicles in U.S. due to failing power-assisted steering systems

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Tesla recalls more than 375,000 vehicles in U.S. due to failing power-assisted steering systems

Tesla models Y and 3 are displayed at a Tesla dealership in Corte Madera, California, on Dec. 20, 2024.

Justin Sullivan | Getty Images

Tesla is voluntarily recalling 376,241vehicles in the U.S. to correct an issue with failing power-assisted steering systems, according to records posted to the website of the U.S. National Highway Traffic Safety Administration.

In a safety recall report posted on the NHTSA website, Tesla said the recall includes Model 3 and Model Y vehicles that were manufactured for sale in the U.S. from Feb. 28, 2023, to October 11, 2023, and that were equipped with a certain older software release.

The records said printed circuit boards in the steering systems in affected vehicles could become overstressed, causing the power-assist steering to fail in some cases when a Tesla vehicle rolled to a stop and then accelerated.

When electronic power-assist steering systems fail in a Tesla, drivers need to exert more force to steer their cars, which can increase the risk of a collision.

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Tesla told the vehicle safety regulator that it was not aware of any crashes, injuries or deaths related to the power steering failures, and that it was offering an over-the-air software update as a remedy.

The recall follows an earlier related probe and voluntary recall in China concerning the same systems.

President Donald Trump has appointed Tesla CEO Elon Musk to lead a team that is slashing the federal government workforce, and in some cases, regulations and entire agencies. Those cuts already affected the NHTSA, an agency Musk has long seen as standing in the way of some of his ambitions at Tesla.

The regulator has been engaged in a yearslong investigation into safety defects in the systems that Tesla markets currently as its Autopilot and Full Self-Driving (Supervised) options. The features do not make Tesla cars into robotaxis. They require a human driver ready to steer or brake at any time.

The Washington Post reported on Thursday that Musk’s team has led mass firings at the NHTSA, reducing the agency’s workforce and capacity to investigate companies including Tesla by about 10%.

Tesla didn’t respond to a request for comment.

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