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British Patient Capital announces £8m investment into Tokamak Energy as part of $125m financing round

Press release 20 November 2024

British Patient Capital today announces it has made an £8m investment into Tokamak Energy as part of a $125m financing round. The funding will help to accelerate ambitious plans to commercialise fusion energy and grow its transformative high temperature superconducting (HTS) technology solution, TE Magnetics.

The round was co-led by East X Ventures and Lingotto Investment Management with participation from new investors including Furukawa Electric Company, global maritime company BW Group and U.S.-based Sabanci Climate Ventures.

The funding brings the total raised since forming as a spin-out from the UK Atomic Energy Authority in 2009 to $335 million, comprising $275m from private investors and $60m from the UK and U.S. governments.

British Patient Capital’s investment was made through the £425m Future Fund: Breakthrough programme, which co-invests with private sector investors in innovative, R&D-intensive UK companies.

The investment will support the rapid growth of TE Magnetics to address demand from the fusion energy market and open new fields of performance in other industries including science, mobility, renewable energy, and security.

It will also advance the company’s leading fusion pilot plant design programme, as well as develop, test and validate new fusion technologies using its record-breaking high field spherical tokamak ST40 for ground-breaking experiments near Oxford. This pioneering research is key to driving the innovation needed to achieve fusion and deliver clean, limitless, affordable energy all over the world.

Warrick Matthews, Tokamak Energy CEO, said:

In addition to the ongoing support of our existing shareholders, we are delighted to welcome new strategic investors to collectively accelerate our ambitious plans. Tokamak Energy’s mission is to make fusion energy a reality, and we believe the only way to achieve that is through strong, global partnerships. This raise provides us with added experience and capability to drive through this critical and exciting phase of fusion development, addressing the twin challenges of climate change and energy security.

Kerry McCarthy, Climate Minister, Department for Energy Security and Net Zero, said:

We are leading the world in fusion energy, working closely with industry to ensure we remain at the forefront of this innovative, emerging market to create good clean jobs. This multi-million-pound investment is a clear signal of Tokamak Energy’s confidence in the UK economy, bringing jobs and kickstarting economic growth as part of our mission to deliver clean power and greater energy independence to Britain.

Christine Hockley, Managing Director, Funds, British Patient Capital, said:

Tokamak Energy is a true British pioneer. The company is taking positive strides forward in a technology that has vast economic potential. But for this to come to fruition, we need to provide the funding that supports its development and expansion across the long term. That is where British Patient Capital has a critical role to play.

George Mills, Director – Deeptech, Direct & Co-Investments, British Patient Capital, said:

Fusion is the holy grail of energy, with far reaching implications for the global energy supply. Companies like Tokamak Energy put the UK at the forefront of this exciting market, which could provide a significant boost to our economy while also helping to solve one of our greatest environmental challenges in delivering an alternative, sustainable source of energy. We’re happy to be supporting the development of this important technology.

Further Information

Notes to editors

About British Patient Capital

British Patient Capital Limited is a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. Its mission is to enable long-term investment in innovative firms led by ambitious entrepreneurs who want to build large-scale businesses. Launched in June 2018, British Patient Capital has more than £3bn of assets under management, investing in venture and venture growth capital to support high growth potential innovative UK businesses in accessing the long-term financing they require to scale up. Find out more here.

British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

British Patient Capital makes commitments and invests on its own behalf and on behalf of third-party investors whose investments British Patient Capital manages.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of Tokamak.

About Tokamak

Tokamak Energy is a leading global commercial fusion energy company. We are a world leader in two transformative technologies: the compact spherical tokamak and High Temperature Superconductor (HTS) magnets. One company, with licensable technology for commercialising clean, secure and affordable fusion energy and enabling new levels of performance in HTS applications that change the world in which we live today.

Founded in 2009 as a spin-off from UK Atomic Energy Authority, we employ a growing team of over 260 people with experts from the UK and around the world. This combines world leading scientific, engineering, industrial and commercial capabilities. We have 77 families of patent applications and have raised $340 million, comprising $280m from private investors and $60m from the UK and US governments.

Our U.S. subsidiary, Tokamak Energy Inc, was established in 2019 and is one of eight companies selected by the Department of Energy for an award as part of its Milestone Program, a key aspect of the bold decadal vision for delivering commercial fusion.

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