General Fusion, a Canadian nuclear fusion energy startup, has secured $22 million in funding following a public funding request, offering a lifeline to the company and boosting fusion energy development in British Columbia. The funding round, led by Segra Capital and PenderFund, saw participation from existing investors, including Chrysalix Venture Capital, MILFAM LLC, JIMCO, Gaingels, Thistledown Capital, Presight Capital, and Hatch Ltd. Adam Rodman of Segra Capital and Kelly Edmison of PenderFund will join General Fusion's board of directors.
This investment comes after a challenging period for General Fusion, marked by financial difficulties and a workforce reduction of 25% in May. CEO Greg Twinney had described the situation as "one of the most challenging financial moments in our history" in an open letter. The $22 million secured is significantly less than the $125 million the company was reportedly seeking. Despite falling short of its initial target, the funding provides a temporary reprieve and allows General Fusion to continue its research and development efforts.
The funds will primarily support General Fusion's LM26 fusion demonstration program, which is focused on advancing its Magnetized Target Fusion (MTF) technology. The LM26 aims to achieve several key milestones, including reaching plasma temperatures of 10 million degrees Celsius and 100 million degrees Celsius, and ultimately achieving scientific breakeven. Scientific breakeven, where the amount of energy produced by a fusion reaction equals the energy used to initiate it, is a critical step in proving the viability of fusion reactors. The LM26 operates at 50% commercial scale.
General Fusion's MTF approach is viewed by some investors as less promising compared to other fusion technologies like tokamak and field-reversed configuration. The recent funding round, characterized as a "pay to play" round, suggests that the company is facing challenges in attracting new capital and convincing investors of its technological viability.
Founded in 2002, General Fusion has raised approximately $462 million to date. While industry projections estimate the nuclear fusion market will reach $178 billion by 2030 and $229 billion by 2034, General Fusion's financial struggles highlight the gap between theoretical potential and practical commercialization. Securing further investment will depend on achieving more promising results with the LM26 device.
