Albuquerque leaders are moving aggressively to secure a major clean energy development that could bring national attention, jobs, and investment to the city. On Monday evening, the Albuquerque City Council voted in favor of a significant financial package intended to convince Pacific Fusion, a fusion energy company, to build its next facility in the city’s Mesa del Sol community.
The deal includes authorization for up to $776 million in industrial revenue bonds (IRBs), along with as much as $10 million in Local Economic Development Act (LEDA) funding. If the project moves forward, city officials say the facility could be operational by mid-2027, positioning Albuquerque as a hub for one of the most promising technologies in the global energy sector.
A Competitive Race for Pacific Fusion
The push to attract Pacific Fusion comes at a time when the competition is fierce. Albuquerque is not the only city vying for the project. According to city leaders, at least two municipalities in California are also in the running. That reality has made it essential for local officials to present a compelling package of financial support to the company.
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Max Gruner, Albuquerque’s Economic Development Director, emphasized the importance of acting quickly to keep the city in contention. “This is not a typical project we bring before you,” Gruner explained to the council. “We are in a competitive posture. Every incentive matters when we’re up against California.”
Mesa del Sol, a large master-planned community on the city’s south side, has been identified as Pacific Fusion’s top choice for its new facility. City officials argue that the area’s infrastructure, available land, and proximity to research institutions make it an ideal fit for a company working on cutting-edge energy technologies.
How the Financing Works
The industrial revenue bonds approved by the council are a key piece of the package. While the city authorized $776 million in bonds, these do not represent taxpayer-funded debt. Instead, Pacific Fusion would be responsible for purchasing the bonds and paying them back over time. This type of arrangement is a common tool used to attract private investment, as it can offer tax advantages and reduce the company’s upfront costs of development.
In addition to the bonds, the LEDA funding would provide direct support for the project. That money could be used for infrastructure, land acquisition, or other expenses necessary to launch the facility. City leaders believe the combination of bonds and LEDA funding gives Albuquerque a competitive edge.
Why Fusion Energy Matters
The project is particularly significant because of the technology at its center. Fusion energy has long been considered the “holy grail” of clean power—a process that mimics the way the sun produces energy by fusing atoms together rather than splitting them apart. If successful at a commercial scale, fusion could provide abundant, carbon-free energy without the long-lived radioactive waste associated with nuclear fission.
Pacific Fusion is one of several companies worldwide racing to develop this breakthrough technology. If the company chooses Albuquerque, the city could find itself at the forefront of an industry that has the potential to transform global energy markets.
Economic Impact for Albuquerque
Beyond the promise of clean energy, local officials are excited about what the facility could mean for Albuquerque’s economy. The project is expected to create hundreds of jobs, ranging from high-paying engineering positions to support and maintenance roles. It would also generate long-term economic activity through construction, research partnerships, and supply chain development.
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“This is exactly the type of forward-looking project we want to attract,” one councilor noted during the meeting. “It positions Albuquerque not only as a place for innovation but as a community that supports cutting-edge industries.”
Looking Ahead
If Pacific Fusion accepts the incentives and moves forward with its plans, construction at Mesa del Sol could begin in the near future, with operations targeted to begin in 2027. That timeline would align Albuquerque with the next wave of advancements in fusion energy, giving the city a chance to showcase itself on a global stage.
For now, the decision rests with Pacific Fusion. The company has yet to officially announce where it will build the facility, but Albuquerque officials are hopeful that the incentives, combined with the city’s talent base and strategic location, will tip the scales in their favor.
As Gruner summarized during Monday’s meeting, “This is a once-in-a-generation opportunity. If we can secure it, Albuquerque could play a defining role in the future of clean energy.”
