General Fusion announces first steps to deploying its clean energy in Italy as tech uncertainty remains

British Columbia-based General Fusion announced Wednesday a partnership with energy infrastructure company Renexia to begin planning the deployment of a commercial version of its clean energy technology in Italy.

In January, the company disclosed a $1 billion Special Purpose Acquisition Company, or SPAC, agreement to go public through a merger with Spring Valley Acquisition Corp. III.

General Fusion is operating its Lawson Machine 26, a magnetized target fusion demonstration device that’s about half the size of its planned commercial‑scale machine. Earlier this week, it announced that LM26 had reached a new temperature milestone of approximately 8.4 million degrees Celsius.

The agreement with Renexia establishes a milestone-based framework covering site identification in Italy, development, funding, construction and commissioning of one or more fusion power plants. General Fusion aims to deploy a commercial fusion machine by around 2035.

The Canadian company is among roughly 50 contenders in a global race to commercialize fusion, though none has yet managed to produce more energy from a fusion reaction than it takes to initiate one.

The sector continues to draw significant attention and investment as tech companies and others scramble for carbon-free energy sources. Fusion startups aim to replicate the physics that power the sun and stars, generating energy by fusing light atoms together.

General Fusion launched in 2002 and has raised $400 million from investors, industry partners and government grants. The company has hit some roadblocks in recent years. In 2023, it put plans on hold to build a larger demonstration machine in the United Kingdom, pivoting to construction of the LM26 device. Last year, it laid off employees and its CEO made a public plea for new investment.

The SPAC deal continues to progress, and Spring Valley has a shareholder meeting scheduled for July 6. If shareholders and General Fusion security holders approve the SPAC, the deal could close shortly after.

California-based TAE Technologies has similarly made plans to go public. The fusion startup is pursuing a $6 billion merger with Trump Media & Technology Group, the publicly traded parent of Truth Social. With the merger and new funding, TAE said it aims to select a site and begin building a utility-scale fusion plant this year.