General Atomics (GA) has secured a $20m California Competes Tax Credit to accelerate the state’s commercial fusion energy sector. The state funding directly supports GA’s proposal to design and build the Blanket Component Test Facility (BCTF) at its campus in San Diego.

The facility will focus on tackling one of the most significant fusion engineering hurdles – testing full-scale fusion blanket systems. Fusion blankets line the interior of a fusion reactor vessel. They capture extreme energy from the fusion reactions and breed tritium fuel to keep the process self-sustaining.

The proposal intends to leverage GA’s existing Magnet Technologies Center in San Diego – the same site where the powerful ITER Central Solenoid magnet was completed. The initiative bridges public and private sectors to build out a robust domestic supply chain.

Initial funding began with seed investment from the Department of Energy (DOE). GA is collaborating with the Idaho National Laboratory (INL), Japan-based Kyoto Fusioneering, and the University of California San Diego.

The tax credit, distributed through the Governor’s Office of Business and Economic Development (GO-Biz), aligns with broader legislative efforts to establish California as a global fusion hub.

For GA and San Diego, the BCTF would serve as a focal point for scientists and engineers from the public and private sectors to validate blanket designs and develop other critical technologies. The project would also support a growing workforce and further strengthen the region’s role as a fusion innovation hub focused on helping the industry move toward commercialisation.

Senate Bill 80 (Fusion Research and Development Innovation Initiative), introduced in January 2025, was signed into law by Governor Gavin Newsom the following October. Senate Bill 86 (Sales and Use Tax Exclusion for Fusion) was signed into law and chaptered by the Secretary of State, also in October 2025. Senate Bill 925 (Strategic Plan and Regulatory Roadmap), introduced as part of the 2026 legislative session, was approved by the state Senate earlier this year, amended in May and underwent an Assembly committee policy hearing earlier in June.

“We are grateful for this award and energised by what it means for the future of fusion in San Diego,” said Dr Anantha Krishnan, Senior Vice President of the General Atomics Energy Group. “This support will aid General Atomics’ continued investment in the research and capabilities needed to move fusion closer to realisation, while strengthening our clean energy future. Facilities like the BCTF are where fusion research begins moving closer to real-world energy, and we are proud to help lead that work in California.”

He added: “Fusion has always required bold science, sustained commitment and a shared belief in what is possible. With growing support from federal, state and local leaders, I am more optimistic than ever about the future of fusion energy and the role California, San Diego and GA can play in helping move this industry forward. Together, we are closer than ever to turning decades of research into a new source of clean energy that could benefit generations to come.”