General Atomics has received a $20 million California Competes Tax Credit to advance the development of a Blanket Component Test Facility (BCTF).

The American energy and defense corporation claims this is a key step toward viable commercial fusion energy.

The BCTF will test full-scale fusion blanket components—systems that line the interior of a fusion reactor vessel, capture energy from reactions, and generate tritium fuel to sustain the process.

Blanket technology represents one of the primary engineering hurdles to building operational fusion power plants.

Moving fusion energy closer to reality

Fusion smashes light atomic nuclei together to release energy, mirroring the process that powers the sun. Unlike conventional nuclear fission, fusion produces no long-lived radioactive waste. It could also produce practically limitless, carbon-free electricity.

The new award for General Atomics, granted through the Governor’s Office of Business and Economic Development (GO-Biz), will support the design and construction of the proposed facility in San Diego. 

“This support will aid General Atomics’ continued investment in the research and capabilities needed to move fusion closer to realization, while strengthening our clean energy future,” Anantha Krishnan, senior vice president of the General Atomics Energy Group, explained in a press statement. “Facilities like the BCTF are where fusion research begins, moving closer to real-world energy.”

The BCTF project builds on a recent announcement that General Atomics is collaborating with the US Department of Energy on concept designs. Partners include Idaho National Laboratory, UC San Diego, and other industry and academic institutions.

The facility would serve as a shared resource for public and private sector researchers to validate blanket designs and related technologies, supporting workforce development and positioning San Diego as a fusion innovation center.

State-of-the-art fusion research

Since establishing its program in 1957, General Atomics has been a leader in US fusion research. The company currently operates the DIII-D National Fusion Facility in San Diego, the largest magnetic fusion user facility in the United States.

Now, the new award will further boost the company’s ability to enable state-of-the-art fusion research. In the General Atomics statement, California officials emphasized the award’s alignment with broader economic and clean energy goals within the US.

“By further investing in the fusion sector, we are helping ensure California remains a global leader in both the industries of today and the transformative technologies of tomorrow,” said Dee Dee Myers, senior advisor to Gov. Gavin Newsom and director of GO-Biz.

The state has expanded support for fusion in recent years. Senate Bill 80 established the California Fusion Research and Development Innovation Initiative, while SB 86 extended tax exclusions to fusion technologies.

“With growing support from federal, state, and local leaders, I am more optimistic than ever about the future of fusion energy and the role California, San Diego and GA can play in helping move this industry forward,” Krishnan added.

The California Competes Tax Credit program targets businesses that drive investment, job creation, and economic growth. For General Atomics, the funding will accelerate progress toward its long-term goal of commercial fusion power.

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