Canada’s General Fusion plans to lay off about 25% of its 140-strong workforce and to reduce the operation of its Lawson Machine 26 (LM26) fusion device. General Fusion CEO Greg Twinney said, in an open letter, that the decision follows an “unexpected and urgent financing constraint”.
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.
In recent year, 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 aim was to achieve “scientific breakeven equivalent” in the coming years and potentially building a commercial-scale machine in the 2030s. However, the timescale now seems unlikely.
“General Fusion has been around the block. We’ve proven a lot with a lean budget. We’re not a shiny new start-up with a drawing and a dream; we are experienced fusioneers with a clear view of the path to success and the machine to prove it,” Twinney said in his letter. “We are ready to execute our plan but are caught in an economic and geopolitical environment that is forcing us to wait.”
He added: “Keeping a fusion company funded in today’s world requires more than just meaningful capital. It takes ambition, steadfast patience, a bold national vision aligned with the opportunity, and constant refreshing of the investor base as timelines stretch beyond typical fund horizons. Our mission has historically been supported financially by a mix of strong private investors and the Canadian federal government. We have been competing against aggressive nationally funded fusion programmes around the world…. However, today’s funding landscape is more challenging than ever as investors and governments navigate a rapidly shifting and uncertain political and market climate.”
He continued: “This rapidly shifting environment has directly and immediately impacted our funding. Therefore, as a result of unexpected and urgent financing constraints, we are taking action now to protect our future with our game-changing technology and IP – including reducing both the size of our team and LM26 operations – while we navigate this difficult environment. We’re doing what resilient teams do and what we have done before: refocus, protect what matters, and keep building.”
He admits that this is a challenging time for General Fusion but says it is also an attractive opportunity for those with the financial means to transform the world. “All we need now is the capital to finish the job. We are opening our doors and actively seeking strategic options with investors, buyers, governments, and others who share our vision. Reach out now and become part of the future of energy.”
