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> chemical energy that would be released by a reaction between the hydrogen in the reactor amd oxygen from the air would be less than what is released by popping a hydrogen filled balloon with a lighter

Thanks for the correction. If you're breeding lithium in the walls, might that be an incendiary concern?

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The breeding blanket is entirely contained inside a vacuum vessel, so there isn't any oxygen to react with. Also, the are many blanket designs, but the lithium is never present in its elemental form (precisely because it would be very reactive), but in a stable chemical bond with some neutron multiplier (like lithium-lead alloys or beryllium ceramics). In some design the lithium is even immersed in the coolant itself, which is high pressure helium, so it's not going to ignite in any reasonable way.
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> breeding blanket is entirely contained inside a vacuum vessel, so there isn't any oxygen to react with

When the vessel works. If the vessel breaches, that lithium could ignite. Note a showstopper. But I suppose a risk to be thought about by the engineers (probably not by policymakers).

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Commonwealth Fusion Systems plan to use lithium in salt form FLiBe, a molten salt made from a mixture of lithium fluoride (LiF) and beryllium fluoride (BeF2). It does not violently react with air or water.

https://en.wikipedia.org/wiki/FLiBe

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There seems to be a number of different prototypes of blankets, but the average operating temperature seems to be 300-700C. Adding oxygen to some of these designs while that hot may cause metal burning. This said, many of them are ceramic designs and would likely resist combustion.

With all that said, it seems to be way less 'dangerous' material than would be in your average nuclear reactor, making it more of an industrial accident versus a planet contaminating mess.

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You are ignoring that the plasma would ignite the O2 in the air. You are also ignoring what happens when several hundred MW of energy (at about 1,000,000C) under pressure is released instantly. Anytime you have a powerplant with enough energy to be economically viable, releasing that energy at once will be a problem. Even FF PPs can explode quite violently.
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> You are ignoring that the plasma would ignite the O2 in the air.

What does this even mean?

> You are also ignoring what happens when several hundred MW of energy (at about 1,000,000C) under pressure is released instantly.

If you have a gram of hydrogen at a million degrees, it can continue putting out several hundred MW for about a fiftieth of a second.

Even if it somehow gets outside the machine with no heat loss to the structure, by the time it mixes with a few cubic meters of air it'll be down to 1000C or less.

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