America is one step closer to tapping into a new and potentially limitless clean energy source today, with the announcement from MIT spinout Commonwealth Fusion Systems (CFS) that it plans to build the world’s first grid-scale fusion power plant in Chesterfield County, Virginia.

The announcement is the latest milestone for the company, which has made groundbreaking progress toward harnessing fusion — the reaction that powers the sun — since its founders first conceived of their approach in an MIT classroom in 2012. CFS is now commercializing a suite of advanced technologies developed in MIT research labs.

“This moment exemplifies the power of MIT’s mission, which is to create knowledge that serves the nation and the world, whether via the classroom, the lab, or out in communities,” MIT Vice President for Research Ian Waitz says. “From student coursework 12 years ago to today’s announcement of the siting in Virginia of the world’s first fusion power plant, progress has been amazingly rapid. At the same time, we owe this progress to over 65 years of sustained investment by the U.S. federal government in basic science and energy research.”

The new fusion power plant, named ARC, is expected to come online in the early 2030s and generate about 400 megawatts of clean, carbon-free electricity — enough energy to power large industrial sites or about 150,000 homes.

The plant will be built at the James River Industrial Park outside of Richmond through a nonfinancial collabora