A B.C.-based company working to develop the world’s first commercial-scale fusion power plant has secured US$22 million in new funding.
The new money comes less than five months after a funding shortfall forced General Fusion Inc. to lay off a quarter of its staff and scale back experiments on its latest test reaction.
At the time, CEO Greg Twinney told BIV a cooling investment climate and uncertainty from U.S. President Donald Trump’s multiple rounds of tariffs had roiled global capital markets, and caused many investors to avoid taking the same risks they used to.
The company was forced to slow operations of its LM26 test reactor—a half-size fusion reactor the company hopes could one day power 150,000 home.
By 2027, the test reactor is meant to prove the company’s design can release more energy than it consumes. Should the LM26 machine prove successful, General Fusion claims it will need another seven years to scale up the technology into a working power plant.
Workers who were laid off in May included many highly skilled experts in the field who Twinney said the company would like to hire back if funding comes through. But to do that, and to hit its 2027 targets, the CEO said General Fusion needs to fill a US$125-million gap in funding.
General Fusion spokesperson Danielle Johnson said that by raising US$22 million (C$30 million) in financing, the company has secured the necessary funds to reach its next technical milestone — getting the test reactor to reach of 10 million degrees Celsius.
The latest financing better positions the company to bring in new investors to fund the remainder of the LM26 program. The company has further experimental plans to raise the reactor’s temperature to 100 million degrees Celsius, and ultimately, scientific break-even equivalent, where the machine releases more energy than it consumes.
“We have hired back some team members and are hiring new staff as well,” said Johnson.
In a press release Monday, the company said the latest round of financing included nine investors. Among those were Segra Capital and PenderFund, which provided funding through its Pender Growth Fund Inc. (TSX-V:PTF) and Pender Small Cap Opportunities Fund.
Both companies will also now hold seats on General Fusion’s Board of Directors—Adam Rodman for Segra Capital and Kelly Edmison for PenderFund.
As Segra’s founder and chief investment officer, Rodman has more than 17 years of financial expertise focusing on energy. The Florida-based investment firm focuses on clean-tech partnerships and claims to be the largest fund dedicated to investing in nuclear power across public and private markets.
Edmison, who founded PenderFund Capital Management Ltd in 2003 and now serves as chairman, previously spent more than two decades practising law, mostly representing B.C.-based technology companies.
In a statement, Twinney said the latest round of financing — which includes both new and long-standing shareholders — is a “vote of confidence” in General Fusion’s technology, mission and team of engineers.
“Even during these challenging times, they persevered, advancing our technology with unwavering focus,” said the CEO of his workforce. “Our labs kept buzzing. ... We’re making tangible progress, and I look forward to sharing our results as we accelerate our efforts going forward.”
