Investment into trailblazing fusion company moves Canada towards fusion deployment, and the opportunity to seize a significant market share in new clean energy sector
CHALK RIVER, Ontario, Aug. 08, 2024 (GLOBE NEWSWIRE) — Canadian Nuclear Laboratories (CNL), Canada’s premier nuclear science and technology organization, and the Business Development Bank of Canada’s investment arm, BDC Capital, Canada’s bank for entrepreneurs, are pleased to announce a lead investment of CA$10 million each in General Fusion, a Canadian-based, international leader in the development of commercial fusion energy. The financing will enable General Fusion to continue advancing its innovative technology – Magnetized Target Fusion (MTF) – to provide clean fusion energy to the grid by the early to mid-2030s.
To fast track its progress towards commercialization, General Fusion is advancing its Lawson Machine 26 (LM26) demonstration program in Richmond, B.C. This ground-breaking machine is designed to achieve two transformational milestones for fusion energy, temperatures of over 100 million degrees Celsius (10 keV) and scientific breakeven equivalent, using the company’s uniquely practical MTF technology.
As a new lead investor in the financing, CNL will be represented on General Fusion’s board of directors by Doug McIntyre, Vice-President, Legal and Insurance. BDC has been a major investor in General Fusion since 2019, and is represented on General Fusion’s board by Zoltan Tompa, Senior Partner at BDC Capital’s Climate Tech Fund.
In addition to the lead investments, the first closing of this financing also includes investment from Hatch, a Canadian headquartered world-leading consultancy firm specializing in the mining, energy, and infrastructure sectors, and other company shareholders. This financing brings the total public and private investment into General Fusion’s LM26 program to over CA$71 million since its launch in 2023.
This announcement comes shortly after Fusion Day 2024, a forum hosted by CNL and AECL that welcomed Canadian and international leaders to the nation’s capital in June to discuss and explore the path to fusion deployment in Canada. During the event, CNL released its new Fusion Energy for Canada report, which outlines the significant future opportunity for Canadian technology, and the advantages of being an early-mover in the development of this sector.
The report indicates that fusion development can drive new jobs, economic growth, intellectual property, and innovation in Canada. Building and operating domestic fusion power plants and exporting products and services for international experiments and plants, could create over 63,000 Canadian jobs and establish valuable supply chains by 2050. Overall, it is estimated that fusion could offer CA$520 billion in cumulative economic benefits by 2100, and as a clean source of heat and electrical energy, help to reduce cumulative emissions by up to 192 Mt CO2-eq by 2050.*
CNL’s investment is being facilitated through the New Nuclear and Emerging Technologies (N2ET) program, an active portfolio of work underway at Canada’s national nuclear laboratories to advance fusion and advanced energy technology research and commercialization domestically. Through a series of joint projects conducted as part of CNL’s highly successful Canadian Nuclear Research Initiative (CNRI) program, CNL and General Fusion have already been working together to advance the design of General Fusion’s power plant. That work has included analysis by CNL of tritium breeding technologies and tritium management facilities. Tritium is a primary component of fusion fuel. More recently, the teams collaborated on research related to the fusion machine, balance of plant, and power conversion system for General Fusion’s MTF machine design.
Quotes:
“Canada is a global leader in nuclear energy and this investment in General Fusion reinforces our status as a powerful innovator in nuclear science and technology. Backed by almost 80 years of experience and contributions, Canada’s nuclear industry is poised to seize the global economic opportunities before us. This investment aligns with the Government of Canada’s economic plan to foster energy innovation, increase productivity, and ensure Canada continues to lead in the economy of the future.”
The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources
“CNL and General Fusion share the same vision – to unlock fusion’s tremendous potential as a transformative, clean energy future in Canada in order to fight climate change and maintain our energy security. We are proud to invest in such an innovative Canadian company, applying our unique capabilities and expertise within Canada’s national nuclear laboratory to help bring their technology to life, and secure these environmental and economic benefits to Canada.”
Jack Craig, CNL President and CEO
“AECL’s vision is to realize value to Canadians by driving nuclear innovation and to leverage nuclear science, technology and expertise to deliver real-world solutions. There is no better way to demonstrate this commitment than to support and enable technology development that will clearly advance domestic opportunities for fusion in Canada. Congratulations to CNL and GF for strengthening their ongoing collaboration.”
Fred Dermarkar, AECL President and CEO
“This investment in General Fusion will advance the LM26 program to demonstrate fusion conditions and scientific energy breakeven, which in turn will accelerate and derisk the company’s pathway to commercial fusion energy. As a long-term investor in General Fusion, we’re pleased to partner with CNL, a globally preeminent nuclear science laboratory and a strategically important addition to General Fusion’s global investor base.”
Zoltan Tompa, Partner & Team Lead, Climate Tech Fund, BDC Capital
“This new investment from CNL and BDC represents a major vote of confidence in General Fusion and strengthens Canada’s position to lead in the deployment of commercial fusion power – a technology that will play a transformational role in the future of clean energy. Through this financing, General Fusion continues to not only advance our LM26 program but build the strategic partnerships we need to make this clean, baseload energy source a reality. With long-standing and continued support from BDC, and a new opportunity to leverage the capabilities of CNL and AECL through the N2NET program, this investment is an exciting and momentous step forward for fusion energy development in Canada. We’re proud to lead the way with a uniquely practical approach to clean fusion power – Magnetized Target Fusion.”
Greg Twinney, General Fusion CEO
About CNL
As Canada’s premier nuclear science and technology laboratory and working under the direction of Atomic Energy of Canada Limited (AECL), CNL is a world leader in the development of innovative nuclear science and technology products and services. Guided by an ambitious corporate strategy known as Vision 2030, CNL fulfills three strategic priorities of national importance – restoring and protecting the environment, advancing clean energy technologies, and contributing to the health of Canadians.
The Chalk River Laboratories serves as national laboratory for all fusion developers and is home to some of the most advanced laboratories, facilities and testing equipment in the world.
For more information on CNL, including its fusion program, please visit www.cnl.ca
About AECL
Atomic Energy of Canada Limited (AECL) is a federal Crown corporation with a mandate to drive nuclear opportunities for Canada. Working through a government-owned/contractor-operated (GoCo) model that is executed by its contractor, Canadian Nuclear Laboratories, AECL enables nuclear science and technology through its Chalk River Laboratories, Canada’s largest research complex, and by engaging with academia and private industry to advance nuclear innovation. It is committed to advancing reconciliation with Indigenous peoples. It also manages the Government of Canada’s radioactive waste responsibilities. AECL continues to own the intellectual property for the CANDU® reactor technology and is accountable for deriving optimal benefit from this technology for Canada. Read more on AECL at www.aecl.ca.
About BDC Capital
BDC Capital is the investment arm of BDC, Canada’s bank for entrepreneurs. With over $6 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, as well as fund investments, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.
About General Fusion
General Fusion is pursuing a fast and practical approach to commercial fusion energy and is headquartered in Richmond, B.C., Canada. The company was established in 2002 and is funded by a global syndicate of leading energy venture capital firms, industry leaders and technology pioneers. Learn more at www.generalfusion.com.
CNL Contact:
Philip Kompass
Director, Corporate Communications
1-866-886-2325
[email protected]
BDC contact:
Media Relations
[email protected]
1-844-625-8321
General Fusion Media Relations:
Grace Peach
Director, External Relations
1-866-904-0995
[email protected]