Fusion research has focused on the goal of a fusion power source that utilizes deuterium–tritium (D–T) because the reaction rate is relatively large. Fusion reactors based on the deuterium–deuterium (D–D) reaction, however, might be superior to D–T based reactors insofar as they minimize the power produced in neutrons and do not require the breeding of tritium. We explore an alternative D–D based fuel cycle and show that a levitated dipole may be uniquely suited for this application. We find that a dipole based D–D power source can potentially provide a substantially better utilization of magnetic field energy with a mass power density comparable with a D–T based tokamak power source.