A high efficiency compact fusion reactor for use as a neutron source or energy source is described. The furnace includes a toroidal plasma chamber and a plasma confinement system, which are configured to generate a magnetic field that confines the plasma within the chamber. The plasma confinement system is configured such that the large radius of the confined plasma is 1.5 m or less. The toroidal magnetic field is operated to be 5T or less, and the plasma current is 5MA or less. Nevertheless, the alpha particles that are generated are confined in the plasma.
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