struggling fusion power company general fusion gets $22m lifeline from investors

General Fusion Receives $22 Million in Funding

General Fusion, a Canadian startup focused on nuclear fusion energy, has announced a new round of funding totaling $22 million.

This investment arrives after the company implemented significant cost-cutting measures, including a workforce reduction of at least 25% in May.

CEO Greg Twinney had previously issued a public appeal for financial support, highlighting the company’s challenging financial situation.

Details of the Funding Round

The funding was provided by existing investors in a “pay to play” structure.

This meant participation was required to maintain current ownership percentages.

Investors included Chrysalix Venture Capital, Gaingels, Hatch, MILFAM, JIMCO, PenderFund, Presight Capital, Segra Capital Management, and Thistledown Capital.

PenderFund and Segra have been granted seats on the company’s board of directors as a result of this investment.

Funding Falls Short of Initial Goal

While described as “oversubscribed,” the $22 million raised is considerably less than the $125 million General Fusion was reportedly seeking.

Adam Rodman, chief investment officer at Segra Capital, stated that the amount secured represents “the least amount of capital possible” needed to achieve the next key scientific objective.

Prior to this round, the company had already raised $440 million, according to PitchBook data.

Lawson Machine 26 and Future Milestones

Months before revealing its financial difficulties, General Fusion activated its Lawson Machine 26 (LM26), a prototype representing half the scale of a full commercial reactor.

The new funding will allow for continued operation of LM26 as the company works towards achieving critical scientific benchmarks.

General Fusion is developing a magnetized target fusion approach.

• Electricity is passed through deuterium-tritium fuel.
• This generates a magnetic field to contain the plasma.
• The plasma is then compressed by a liquid lithium wall driven by steam-powered pistons.

This combination aims to create the necessary temperature and pressure for a fusion reaction.

Scientific Breakeven and Intermediate Goals

In March, upon commissioning LM26, General Fusion projected achieving scientific breakeven by 2026.

Scientific breakeven signifies a fusion reaction generating enough energy to offset the energy required to initiate it.

This is a vital step in validating a reactor design, though it doesn’t automatically guarantee commercial viability.

The company continues to pursue scientific breakeven, but has not provided a revised timeline.

Two intermediate objectives have been identified: reaching plasma temperatures of 10 million and 100 million degrees Celsius.

Looking Ahead

Given the limited funding, General Fusion will likely prioritize the most attainable milestones to attract further investment.

The current funding may provide temporary relief, but sustained progress and promising results are crucial to avoid future financial challenges.

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