Tri-Cities is new home to a Seattle startup’s $30M fusion energy research outpost
A fusion-focused Seattle startup will invest $30 million to create a research and possibly manufacturing outpost in Richland.
Avalanche Energy Designs Inc. is a micro fusion company backed by Founders Fund, a prominent San Francisco venture capital fund associated with SpaceX, Facebook, OpenAI and hundreds of other successful businesses.
Avalanche plans to move into office, warehouse and cleanroom space on Stevens Drive that was formerly used by Veolia Nuclear Solutions, the nuclear cleanup contractor.
Co-founders Robin Langtry and Brian Riodan created Avalanche in 2018 to develop portable fusion reactors to generate electricity in difficult settings.
The duo first met working at Blue Origin, the space exploration venture started by Amazon Inc. founder Jeff Bezos.
Avalanche employs 50 near downtown Seattle, where its quarters flank Boeing Field/King County International Airport.
Its motto is “Fusion is Better Small” and its Orbitron 1-100 kWe prototype reactors are smaller than a household appliance, making them portable enough to reach areas that traditional power grids can’t touch.
Think space, disaster zones, military installations, ocean settings, transportation, weapons systems and microgrids.
Neither the company nor Founders Fund, could be reached about their expansion to Eastern Washington.
The port’s elected commissioners discussed their own role in bringing the company to the Tri-Cities during their regular business meeting Wednesday, Oct. 16.
Energy jobs
Avalanche is expected to hire 23 to 60 in Richland between 2027 and 2031, said Diahann Howard, the port’s executive director.
The port owns the building at 2345 Stevens and is eager to see Avalanche step in as Veolia leaves. Avalanche is a promising energy startup with a mission that echoes the port’s goal of recruiting clean energy developers.
Avalanche is backed by $45 million raised through at least two private offerings, according to Ford D filings with the U.S. Securities and Exchange Commission. It raised $5 million in 2021 and $23 million of the $40 million sought in 2022, filings show.
Avalanche declined to disclose revenue in both offering statements, the filings indicate.
Founders Fund, its investor, is a multi-billion dollar venture firm focused on tech-based solutions to “difficult problems.”
Cleaning up cleanroom
Avalanche will take over Veolia’s 20,300-square-foot site under a complicated deal involving the port, Veolia and the Tri-City Development Council (TRIDEC).
Veolia intended to remove the cleanroom it created to support its nuclear cleanup work. The ultra controlled environment played a role in its work involving cleanup following the Fukushima nuclear accident.
Avalanche, however, wants the cleanroom to support its own research and development purposes, said Howard, the port director. Veolia agreed to leave the cleanroom and associated equipment as long as it is released from any obligation to remove it in the future.
TRIDEC, which has worked to recruit Avalanche for about a year, is stepping up to help assure the cost won’t fall to the port or Avalanche, according to Karl Dye, president and CEO of the regional economic development agency.
It pledged $150,000 toward the $330,000 potential liability.
The port, which is eager to make a deal with Avalanche, doesn’t want to be left with the liability of Avalanche departs in the future. It has asked Avalanche to provide a performance bond to cover the potential future liability.
Fusion is key
Dye said Avalanche’s technology will be key to related research taking place in the Tri-Cities.
TRIDEC met the company through the nuclear development program at the Pacific Northwest National Laboratory, he said. TRIDEC hopes Avalanche will site future manufacturing facilities in the area, he said.
“Avalanche Energy and fusion are important for the Tri-Cities because they represent the next generation of clean energy and research for the world. For our community, they will build on the legacy and history of the Manhattan Project, PNNL and Energy Northwest,” Dye said.
The port commission voted unanimously to negotiate a lease with Avalanche and to enter the TRIDEC cleanroom agreement.
The port is offering discounted rent of $114,700 for the first year, excluding leasehold taxes and utilities, to support the potentially lucrative addition to Richland’s growing roster of energy-focused businesses.
The rent would rise to competitive market levels over the following three years.
Avalanche is focused on generating power by using a high voltage current to fuse deuterium and tritium in a process that would generate more power than it consumed.
Go to YouTube for a detailed profile of the company and its technology.
The Port of Benton is the economic development agency that facilitates growth and development western Benton County by leasing property to business, operating airports in Richland and Prosser, a railroad and tourism oriented facilities.
This story was originally published October 17, 2024 at 5:00 AM with the headline "Tri-Cities is new home to a Seattle startup’s $30M fusion energy research outpost."