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Fusion power is a form of power generation in which energy is generated by fusing two lighter atomic nuclei to form a heavier nucleus, thereby releasing energy. To put this in context, teams have been trying to develop a practical fusion reactor for nearly one hundred years.

In addition the proposed Lockheed reactor is reportedly capable of providing sufficient energy to power a Nimitz-class aircraft carrier. Lockheed estimates that just 25 pounds of fuel could run the reactor for an entire year and provide a consistent energy output of 100 megawatts for that year.

Generically speaking fusion reactors are safer, cleaner and more powerful than existing fission reactors. However it is likely that Lockheed’s reactor is still in the early stages of development as the US government has apparently not classified the patent.

However we should also note that back in May 2017, the UK’s announced that a development fusion reactor, named ST40, managed to achieve ‘first plasma’ whereby they successfully generated an electrically-charged gas or plasma within its core. The goal for this reactor is to heat plasma up to 100 million degrees Celsius, which is seven times hotter than the centre of the Sun. This would equate to the point where fusion threshold occurs and hydrogen atoms begin to fuse into helium and providing near limitless clean energy in the process.

Crucially, what Caterpillar have established is that the huge growth driver that has come about is precisely because of the One Belt One Road (OBOR) initiative. What is also clear is that demand for Caterpillar’s array of equipment in the Asia-Pacific region comes about because a sizeable majority is bought in China because of the tax rebates granted to those projects under the umbrella of the OBOR. Sales have increased over 20% in the last quarter of 2017, compared to the previous year. Many of these sales then end up being utilised in projects as far afield as Belarus in Europe and across the African continent.

Whilst Caterpillar faces competition from cheaper alternatives made by Chinese companies, they are faring better in the markets where Chinese equipment suppliers are not competitive and in addition on occasions, Chinese products are viewed as inferior in terms of quality and technology. The other advantage that Caterpillar has is its vast array of dealerships and branches across the world which can easily supply spare parts and assist with repairs for equipment which was originally sold in China.

In further developments Caterpillar has initiated a financial arm which has been lending to Chinese companies. What this demonstrates is that US companies can potentially be well placed to take advantage of the OBOR initiative and calve a niche for themselves in a very lucrative marketplace. Caterpillar are also fully aware that as the myriad of OBOR projects, in the pipeline, come online there is going to be a corresponding sharp increase in demand for their product lines.