Canada’s General Fusion has closed $22m in new financing to support its LM26 fusion demonstration programme. Investors in this round include Segra Capital, PenderFund (via Pender Growth Fund and Pender Small Cap Opportunities Fund), Chrysalix Venture Capital, MILFAM, JIMCO, the global investment arm of the Jameel family, Gaingels, Thistledown Capital, Presight Capital, and Hatch Ltd. Segra Capital and PenderFund will be represented on the company’s Board of Directors by Adam Rodman and Kelly Edmison, respectively.
General Fusion was founded in 2002 by the Canadian plasma physicist Michel Laberge and has attracted more than $325m of funding from both private investors and the Canadian government. The company uses Magnetised Target Fusion (MTF) technology, based on the concept of an enclosed, liquid-metal vortex. Plasma is injected into the centre of the vortex before numerous pistons hammer on the outside of the enclosure, compressing the plasma and sparking a fusion reaction, with the resulting heat being absorbed by the liquid metal.
LM26, launched in 2023, has achieved a number of milestones, including generating a magnetised plasma in the machine’s target chamber in March and compressing a large-scale magnetised plasma with lithium in April. The machine is designed to demonstrate MTF at 50% commercial scale and achieve milestones of 10m degrees Celsius (1 keV), 100m degrees Celsius (10 keV), and ultimately, scientific breakeven equivalent (100% Lawson).
In May, General Fusion laid off about 25% of its 140-strong workforce and said it planned to reduce the operation of LM26 General Fusion CEO Greg Twinney said, in an open letter, that the decision followed an “unexpected and urgent financing constraint”.
Following the funding round, Twinney said in a statement: “Three months ago, General Fusion stood at a crossroads. Today, I am incredibly proud to share that General Fusion has secured new funding to return to growth and continue to progress toward commercial fusion energy. This funding is a resounding vote of confidence in our technology, our people, and our mission.… Now, with renewed Board leadership and fresh momentum, we’re better positioned to drive our unique technology forward and continue to secure funding.”
He added: “Today, our LM26 fusion demonstration machine, the first of its kind, is up and running. It’s built to prove our Magnetized Target Fusion (MTF) at a large scale and is compressing plasmas with increasing frequency toward key milestones. We’re making tangible progress, and I look forward to sharing our results as we accelerate our efforts going forward.”
Techcrunch said General Fusion had been thrown a lifeline in the form of $22m in fresh funding, adding: “The additional cash will give General Fusion some breathing room, though not much…. Though the company described the round as ‘oversubscribed’, the $22m falls far short of the $125m that the company was reportedly seeking.” Adam Rodman, chief investment officer at Segra Capital, told The Globe and Mail that the $22m was “the least amount of capital possible” to help the company hit the next scientific milestone.
Referring to General Fusion’s targets of heating plasmas to 10m degrees Celsius and 100m degrees Celsius, TechCrunch said: “Given the limited size of the fresh funding, it seems likely that General Fusion will shoot for the most achievable milestones to convince investors to cut a new round of checks. The company may have bought itself a few precious months, but unless it can deliver promising results, it may find itself back in the same tight spot it was in during May.”
