REG - IP Group PLC - Portfolio company First Light achieves fusion

IPAnnouncement

05/04/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220405:nRSE2309Ha&default-theme=true

RNS Number : 2309H  IP Group PLC  05 April 2022

 FOR RELEASE ON  05 April 2022

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE UK
VERSION OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH FORMS PART OF
ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

IP Group plc - Portfolio company First Light Fusion achieves world first
fusion result with 'projectile fusion', offering simpler, faster, cheaper
pathway to fusion energy

 

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which develops
world-changing science and technology businesses across life sciences,
technology and cleantech, notes that portfolio company First Light Fusion Ltd
("First Light" or "the Company") has confirmed that it has achieved fusion
which has been independently validated by the UK Atomic Energy Authority
(UKAEA).

 

This is the first time fusion has been achieved using a projectile-based
approach, harnessing the unique target technology developed by First Light.
Projectile fusion is a new approach to inertial confinement fusion that is
simpler, more energy efficient, and has lower physics risk. First Light has
achieved fusion having spent less than £45m, and with a rate of performance
improvement faster than any other fusion scheme in history.

 

IP Group believes achieving this world-first will at least result in an
initial doubling of the value of the Company with recent comparatives and
third party valuation work suggesting a doubling to quadrupling may be
achieved at the next funding round.

 

Our preliminary assessment, based upon the lower end of the range, implies a
carrying value of the asset that will generate an initial net fair value gain
of at least £57m (or approximately 5 pence per share). As at December 31
2021, IP Group's undiluted beneficial holding of 27.4% in First Light was
valued at £57.3m.

 

Greg Smith, Chief Executive Officer of IP Group, said: "Following the success
of Oxford Nanopore, Ceres Power and others, this is another example of IP
Group having helped establish a business with the potential to have enormous
impact and supporting it over many years to a significant inflexion point. In
this case, we helped found First Light in 2011 with the belief that its
differentiated technology had the potential to provide a much cheaper route to
fusion energy. Hitting the fusion milestone is a hugely important step on that
journey and we're delighted for the team at First Light and are extremely
proud of their achievements. We continue to have strong conviction in the
Company and the potential its technology offers."

 

First Light believes its 'projectile fusion' approach offers the fastest,
simplest and cheapest route to commercial fusion power. Instead of using
complex and expensive lasers or magnets to generate or maintain the conditions
for fusion, First Light's approach compresses the fuel inside a target using a
projectile travelling at tremendous speed. The key technology in First Light's
approach is the target design, which focuses the energy of the projectile,
imploding the fuel to the temperatures and densities needed to make fusion
happen.

 

Dr Robert Trezona, Head of IP Group Cleantech, said: "Achieving a fusion
reaction using projectile-driven inertial confinement is a world first. We
understood the potential of the hydrodynamic simulation tools invented in the
University of Oxford over 10 years ago and have backed the company all the way
since then. First Light's ability to model their system has allowed them to
identify a route to practical fusion energy using projectiles to provide the
confinement energy for the fusion plasma. This is more efficient and allows
simpler hardware to be used, such as a gas gun. Demonstrating fusion with this
approach is an extraordinary achievement from a top rate scientific team and
it has happened at a fraction of the cost of other fusion programmes. We
remain extremely excited by its potential and look forward to the next phase".

 

To deliver this fusion result, First Light used its large two-stage
hyper-velocity gas gun to launch a projectile at a target, containing the
fusion fuel. The projectile reached a speed of 6.5 km per second before
impact. First Light's highly sophisticated target focuses this impact, with
the fuel accelerated to over 70 km per second as it implodes, an increase in
velocity achieved through its proprietary advanced target design, making it
the fastest moving object on earth at that point. First Light's equipment is
relatively simple, built in large part from readily available components.
First Light believes this approach accelerates the journey towards commercial
fusion power as there is a large amount of existing engineering that can be
reused to realise its proposed plant design.

 

First Light is advancing plans for a "gain" experiment (more energy out than
in) and also expects to partner with existing power producers to develop a
pilot plant using its unique fusion approach. First Light is working towards a
pilot plant producing ~150 MW of electricity and costing less than $1 billion
in the 2030s. The Company is working with UBS Investment Bank to explore
strategic options for the next phase of its scientific and commercial
development.

 

The full announcement from First Light follows below.

 

For more information, please contact:

 

 IP Group plc                                             www.ipgroupplc.com (http://www.ipgroupplc.com)
 Liz Vaughan-Adams, Communications                        +44 (0) 20 7444 0062/+44 (0) 7967 312125
 Charlotte Street Partners
 Adam Shaw                                                +44 (0) 7824 096155
 Andrew Wilson                                            +44 (0) 7810 636995

 

Notes for editors

 

About IP Group

 

IP Group develops world-changing science and technology businesses across life
sciences, technology and cleantech. The Group has a strong track record of
success, having been the founder investor in a number of high-profile
companies including Oxford Nanopore Technologies plc, and has one of the most
exciting portfolios of high-growth businesses in Europe. The Group also owns
Parkwalk, the UK's largest growth EIS fund manager which backs world-changing
technologies emerging from the UK's leading universities and research
institutions. IP Group is listed on the Main Market of the London Stock
Exchange under the code IPO.

 

Group holdings in portfolio companies reflect the undiluted beneficial equity
interest excluding debt, unless otherwise explicitly stated.

 

For more information, please visit our website at www.ipgroupplc.com
(http://www.ipgroupplc.com/) .

 

ENDS

 

 

First Light achieves world first fusion result, proving unique new target
technology

·      Fusion shown with projectile approach for first time, validated
by UKAEA

·      Breakthrough achieved faster and cheaper than traditional fusion
approaches

·      Unique target approach offers simpler pathway to low-cost fusion
energy using existing plant technology

·      Projectile approach enables a high-margin consumables business
model with an addressable market in the hundreds of billions

05 April 2022, Oxford, UK: First Light Fusion (First Light), the University of
Oxford fusion spin-out, today confirms it has achieved fusion. The UK Atomic
Energy Authority (UKAEA) has independently validated the result.

This is the first time fusion has been achieved using the unique targets
developed by First Light, and the corresponding projectile technology. First
Light's mission is to solve the problem of fusion power with the simplest
machine possible. Projectile fusion is a new approach to inertial fusion that
is simpler, more energy efficient, and has lower physics risk. First Light has
achieved fusion having spent less than £45 million, and with a rate of
performance improvement faster than any other fusion scheme in history.

Business & Energy Secretary, Kwasi Kwarteng, said:

"First Light Fusion's British-born technology could potentially revolutionise
power production in the coming decades. That is why this government is
investing in UK science and innovation, ensuring that we remain at the
forefront of the global scientific endeavour to make safe, clean, limitless
fusion energy a reality."

Projectile fusion offers a simpler, cheaper, faster approach to fusion

Fusion is the phenomenon which powers the sun. The challenge is to control the
complexities involved in replicating this process to produce a clean, abundant
but also commercially viable source of power.

First Light is taking a unique projectile fusion approach to solve this
challenge, which it believes offers the fastest, simplest and cheapest route
to commercial fusion power. This means that instead of using complex and
expensive lasers or magnets to generate or maintain the conditions for fusion,
First Light's approach compresses the fuel inside a target using a projectile
travelling at tremendous speed. The key technology in First Light's approach
is the target design, which focuses the energy of the projectile, imploding
the fuel to the temperatures and densities needed to make fusion happen.

To deliver this fusion result, First Light used its large two-stage
hyper-velocity gas gun to launch a projectile at a target, containing the
fusion fuel. The projectile reached a speed of 6.5 km per second before
impact. First Light's highly sophisticated target focuses this impact, with
the fuel accelerated to over 70 km per second as it implodes, an increase in
velocity achieved through our proprietary advanced target design, making it
the fastest moving object on earth at that point.

A key step towards a projectile fusion power plant

First Light's power plant design involves the target being dropped into the
reaction chamber and the projectile launched downwards through the same
entrance, so it catches up with and impacts the target at the right moment
[see https://www.youtube.com/watch?v=aW4eufacf-8
(https://www.youtube.com/watch?v=aW4eufacf-8)  for visual representation].

The impact is focused and amplified by First Light's advanced target
technology, and a pulse of fusion energy is released. That energy is absorbed
by the lithium flowing inside the chamber, heating it up. The flowing liquid
protects the chamber from the huge energy release, sidestepping some of the
most difficult engineering issues in other approaches to fusion. Finally, a
heat exchanger transfers the heat of the lithium to water, generating steam
that turns a turbine and produces electricity.

First Light's equipment is relatively simple, built in large part from readily
available components. First Light believes this approach accelerates the
journey towards commercial fusion power as there is a large amount of existing
engineering that can be reused to realise its proposed plant design.

A consumables business model and competitive LCOE

With this simpler approach that reuses existing technology, peer reviewed
analysis 1  conducted by First Light shows that projectile fusion offers a
pathway to a very competitive Levelised Cost Of Energy ("LCOE") of under $50 /
MWh, directly competing on cost with renewables. This would make it the most
cost competitive source of baseload power.

First Light's approach, centred around the sophistication of its target
design, will also enable it to pursue a high value-added consumables business
model (i.e. mass manufacture of the targets themselves), where it will partner
with power plant operators and become the fuel provider in the form of the
targets.

First Light believes this focus not just on the science, but also its future
business model, presents another important point of difference, showcasing not
just the environmental but also the commercial benefits of First Light's
approach to fusion power.

UKAEA validation

The UK Atomic Energy Authority ("UKAEA"), an executive non-departmental public
body sponsored by the UK Government Department for Business, Energy and
Industrial Strategy was invited to analyse and validate First Light's fusion
results before these were officially made public. The process included
independent modelling of the detector configuration and response, review of
all calibration data for both types of neutron detector used, review of the
processing and statistical analysis of the data, full physical access to all
detection equipment for hands-on inspection, and the witnessing of a fusion
shot. This work has taken place over a period of over three months and UKAEA
is able to confirm there is evidence that First Light has produced neutrons
that are consistent with those produced from the fusion of deuterium fuel.

Next Steps

Plans for a "gain" experiment (more energy out than in) are advancing at pace.
First Light expects to also partner with existing power producers to develop a
pilot plant using its unique fusion approach. First Light is working towards a
pilot plant producing ~150 MW of electricity and costing less than $1 billion
in the 2030s. First Light is working with UBS Investment Bank to explore
strategic options for the next phase of its scientific and commercial
development.

Dr Nick Hawker, co-founder and CEO of First Light Fusion, said:

"Our approach to fusion is all about simplicity. Being simple, we believe
projectile fusion is the fastest path to commercially viable power generation
from fusion. We aim for simplicity in the power plant engineering, but we also
want to make the fusion process itself as simple as possible. The key
technology is our target designs. As objects, these are very complex, but the
physics is simpler than other fusion approaches; it can be understood and
simulated accurately. With this result we have proven our new method for
inertial fusion works and, more importantly, we have proven our design
process. The design used to achieve this result is already months out of date.
As soon as we reach the maximum with one idea, we invent the next, and that
incredible journey of discovery is what is so exciting."

Steven Chu, Jerry Chittenden, Richard Dennis, Richard Garwin, Sir David King,
Arun Majumdar, Andrew Randewich, Steven Rose and Ron Roy, members of First
Light's Advisory Boards*, said:

"We congratulate the First Light team on reaching this significant milestone.
We have watched first hand as they have advanced along this path to fusion.
First Light's target designs are remarkable, and the team's ability to
accurately simulate and thus optimise their performance gives them an
invaluable tool on the path to gain. That journey will undoubtedly involve
many hurdles, but in reaching fusion, First Light's technology has shown its
merit."

Professor Yiannis Ventikos FREng, Kennedy Professor, Head of Department for
UCL Mechanical Engineering, and co-founder of First Light, said:

"While achieving fusion in the lab is a tremendous success in its own right,
the context is equally important. True to First Light's rigorous scientific
approach, this result is supported by strong and continuously evolving
computer modelling. This capability sheds light, in exquisite detail, into the
processes that generate these neutrons. Such tools are in daily use by First
Light's scientists, helping design unique targets, launchers and amplifiers,
navigating the challenging path towards gain and a first-of-a-kind reactor.
This pursuit of practical and affordable fusion will give us the clean and
abundant baseload power that we so desperately need in our effort to address -
and hopefully reverse - global warming."

Bart Markus, Chairman of First Light Fusion, said:

"By focusing on an approach to fusion which is both simpler and cheaper than
other fusion technologies, we believe we have identified a genuine route to
commercial fusion, with a view to meeting not just vital scientific
milestones, but also to develop a sustainable business model. Our unique
target technology enables a business model based on consumables, which
differentiates us from all other fusion technologies. This includes the
manufacture and distribution of the targets themselves, using partners for the
plant development largely borrowing from existing technologies. Our focus on
the business model is equally important: fusion must show it is more than an
expensive science experiment, but that it can be a commercial solution to the
challenge of producing baseload clean energy."

Ian Chapman, UKAEA chief executive, said:

"Fusion promises to be a safe, low carbon and sustainable part of the world's
future energy supply, and we support all advances in this scientific and
engineering grand challenge. These results are another important step forward,
and we are impressed that First Light have arranged independent analysis of
their result."

FUSION FACTS

·      First Light has shown the most rapid progress on fusion triple
product of any project in the history of fusion

·      The number of neutrons produced is low, around 50, however, this
matches the predicted yield exactly

·      The speed of the projectile is 6.5 kilometres per second, which
is 14,500 miles per hour

·      The fuel implodes at over 70 kilometres per second, over 6 times
escape velocity

·      The fuel is compressed to a pressure of 10 Terapascals, which is
100 million atmospheres, higher than the pressure in the centre of Jupiter

·      The fuel capsule within the target is a few mm in size

·      When it fuses, the fuel has been compressed down to less than 100
microns in size, smaller than the thickness of a human hair

·      Our targets boost the pressure of impact by over 20 times

·      In a power plant the process would be repeated every 30 seconds

·      In a power plant, each target would release enough energy to
power the average UK home for over 2 years

The need for fusion

·      Global power demand is expected to double by 2040 and could
increase fivefold by 2060 when new technologies enable the electrification of
a wider range of applications, particularly important at a time of ongoing
global energy insecurity and in the broader context of achieving critical net
zero goals as part of collective efforts to address climate change.

·      First Light commissioned research concluded that 19,900 TWh per
year could be generated from wind and solar globally by 2040. This is an
8-fold increase on today but is still less than half of the projected
requirement.

·      So while the rapid and maximum deployment of renewables is key to
achieving the 2050 Paris target, in several parts of the world wind and solar
power alone will not be able to meet projected energy demand, opening up a
market for clean baseload power to complement renewables.

·      To mitigate the impact of climate change a large global market
for baseload clean power will open up to complement renewables and that is
where fusion energy will play a key role.

ENDS

For more information, please contact:

First Light Fusion Ltd

Gianluca Pisanello, Chief Operating Officer
                      +44 (0) 1865 807 670

UBS Investment Bank (Financial Adviser)

David
James
+44 (0) 20 7567 8000

Sandip Dhillon

Powerscourt Group (Public Relations Adviser)

Peter
Ogden
+44 (0) 7793 858 211

firstlightfusion@powerscourt-group.com
(mailto:firstlightfusion@powerscourt-group.com)

Images available at www.firstlightfusion.com (http://www.firstlightfusion.com)
 

About First Light Fusion

First Light Fusion was spun out from the University of Oxford in 2011 to
address the urgent need to decarbonise the global energy system. First Light's
inertial confinement approach aims to create the extreme temperatures and
pressures required for fusion by compressing a target using a hypervelocity
projectile. First Light's approach to fusion energy, which is safe, clean, and
virtually limitless, has the potential to transform the world's energy system.
Unlike existing nuclear, there is no long-lived waste, no meltdown risk, and
raw materials can be found in abundance. First Light's investors include
Oxford Science Enterprises (formerly OSI) and IP Group plc.

* Advisory Boards members:

·      Steven Chu, the William R. Kenan, Jr., Professor of Physics and
Professor of Molecular & Cellular Physiology at Stanford University,
12(th) U.S. Secretary of Energy and Nobel Prize winner (Physics, 1997);

·      Jeremy Chittenden, Professor of Plasma Physics at Imperial
College;

·      Richard Dennis, formerly Global Director of Research and
Development for Doosan Babcock Energy Ltd;

·      Richard L. Garwin, IBM Fellow Emeritus at the Thomas J. Watson
Research Center;

·      Sir David King, former UK Government Chief Scientific Adviser
from 2000 to 2007;

·      Arun Majumdar, the Jay Precourt Professor at Stanford University;

·      Andrew Randewich, Director of Science, Engineering and Technology
at AWE

·      Steven Rose, Chair in Plasma Physics at Imperial College;

·      Ronald Roy, Professor of Mechanical Engineering and Head of
Department, Department of Engineering Science at University of Oxford.

 

Important notices in relation to financial adviser

UBS AG London Branch is authorised and regulated by the Financial Market
Supervisory Authority in Switzerland. It is authorised by the Prudential
Regulation Authority and subject to regulation by the Financial Conduct
Authority and limited regulation by the Prudential Regulation Authority in the
United Kingdom.  UBS AG London Branch is acting as financial adviser to First
Light Fusion and no one else. In connection with such matters, UBS AG London
Branch will not regard any other person as its client, nor will it be
responsible to any other person for providing the protections afforded to its
clients or for providing advice in relation to such matters, the contents of
this Announcement or any other matter referred to herein.

 

 1  Published in October 2020 in Philosophical Transactions of the Royal
Society

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFZGGDGDMGZZZ