Here’s what I think nuclear fusion news means for BP
Fusion has always been a potential game changer for the energy sector, which has long been dominated by companies like BP (LSE: BP). If successful, nuclear fusion can provide practically limitless energy that’s clean, abundant, and that doesn’t produce radioactive waste. Given that fusion doesn’t emit carbon, it would be a ‘game changer’ for the fight against global warming too. While in the past, fusion was always ‘many years away’ and an aspirational tech, it now looks like fusion technology has a good probability of being viable sooner than expected. Given its transformative potential, I think if fusion becomes commercially viable, it will increase competition for all other forms of energy that generate electricity for distribution. For BP, that means potentially more competition for its natural gas and renewable energy operations. Other big oil companies like Eni already own a part of the MIT-associated scientists’ start-up, named Commonwealth Fusion Systems, for example. If BP transitions into fusion in a big way, I think its valuation could potentially benefit given that many may come to think of it as a ‘tech stock’ too.