General Fusion lays off staff as funding dries up; the BC-based firm seeks $125M USD to stay on track with its clean energy ambitions.
In a sobering turn for one of Canada’s most high-profile clean energy ventures, Richmond, BC-based General Fusion has confirmed layoffs and operational cutbacks due to sudden and urgent funding constraints. In an open letter, CEO Greg Twinney stated that the company is actively pursuing new investments and exploring strategic options with both governments and potential buyers.
“We’re not a shiny new startup with a drawing and a dream—we are experienced fusioneers,” Twinney emphasized, underscoring the urgency of the moment.
The funding freeze comes at a crucial point in the company’s development as it tries to bring fusion energy from concept to commercial viability.
Shifting Global Climate Hits Fusion Ambitions
General Fusion pointed to broader political and economic instability as a key reason behind investor hesitancy. Trade tensions, particularly between Canada and the U.S., are impacting the energy sector. Though the company had previously collaborated with the U.S. Department of Energy, changes in American policy—particularly the dismantling of clean energy plans—have cast uncertainty over future support.
Company spokesperson Dainelle Johnson noted that while interest remains, investor engagement has slowed significantly. “They’re stepping back and taking action a lot slower,” she said.
Fusion Progress Continues—But Needs a Financial Lifeline
Despite the turbulence, General Fusion continues to move forward. The company recently created its first magnetized plasma at its LM26 demonstration facility and completed a large-scale test in late April. The next milestone? Reaching a temperature of 100 million degrees Celsius, which is essential for achieving the energy threshold known as “scientific breakeven.”
The company is currently seeking $125 million USD (approximately $172.7 million CAD) to stay on track with its research and development goals. While the exact number of layoffs remains undisclosed, reports indicate roughly 25% of staff were let go.
The Technology and the Long-Term Vision
At the heart of General Fusion’s strategy is its Magnetized Target Fusion (MTF) technology. Unlike traditional Tokamak reactors, which rely on expensive superconducting magnets or lasers, MTF uses short energy pulses to replicate fusion conditions. The method is seen as more affordable and scalable, potentially enabling urban power facilities.
If successful, a single 300-megawatt fusion plant could power up to 150,000 Canadian homes—providing clean, continuous energy without carbon emissions.
Backed by Billionaires, But Needing More
To date, General Fusion has raised approximately $440 million CAD, including $69 million from the Canadian government. High-profile backers include Jeff Bezos, Shopify founder Tobi Lütke, and engineering giant Hatch. In April, former Blue Origin CEO Bob Smith joined as a strategic advisor, reinforcing the company’s credibility in high-tech circles.
Still, with rising costs and investor caution, even marquee names aren’t enough to guarantee sustainability.
Fusion Dreams at a Crossroads
Founded in 2002, General Fusion has weathered over two decades of scientific hurdles and market shifts. But today, its future hinges on immediate financial support. Twinney remains confident: “We just need the capital to finish the job.”
Whether the company will emerge stronger or fall victim to a brutal funding environment is still uncertain—but one thing is clear: the global race for clean fusion power won’t wait.
Stay tuned to Maple News Wire for updates on Canada’s clean energy breakthroughs and the future of fusion innovation.
