Loan for Construction and Operation of Demonstration Fusion Fuel Cycle Facility in Canada by Japanese Company
Supporting Overseas Business Deployment of Japanese SME That Addresses Practical Use of Next-Generation Energy

• Region: North America
• Manufacturing and Services
• Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on September 3 a loan agreement amounting to up to CAD10 million (JBIC portion) with Fusion Fuel Cycles Inc. (FFC) of Canada, a joint venture between Kyoto Fusioneering Ltd. (KF; Headquarters: Tokyo; CEO: KONISHI Satoshi) and Canadian Nuclear Laboratories (CNL). The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to approximately CAD20 million.
     
2. The loan is intended to provide FFC with the necessary funds for UNITY-2, an integrated test facility project jointly operated by KF and CNL to build and operate a demonstration facility for the fusion fuel cycle system*1.
     
3. KF is a small- and medium-sized enterprise (SME) that researches, develops, designs, and manufactures fusion energy-related equipment. It was founded as a startup from Kyoto University in October 2019. Under a strategic alliance agreement aiming to develop UNITY-2, KF and CNL have established FFC. FFC will build UNITY-2 within CNL’s research institute to develop a fusion fuel cycle that completes the process from fuel discharge to refining and supply, aiming to demonstrate efficient tritium processing technology.
     
4. Fusion energy is a safe and clean energy source that does not emit CO2 during power generation. Around the world, research and development initiatives are progressing to commercialize the technology. Under the Fusion Energy Innovation Strategy, revised in June 2025, and the Seventh Strategic Energy Plan, published in February 2025, the Japanese government intends to promote the research and development of fusion energy with the aim of achieving carbon neutrality by 2050.
     
5. The loan will contribute toward maintaining and improving the international competitiveness of Japanese industry by supporting KF’s business operations in Canada through FFC. In addition, KF expects to establish global standards for fusion energy and to create fusion energy markets in countries around the world. This loan will support the development of new markets in nations that are advancing fusion energy research and development, including in regions where KF operates.
     
6. As Japan’s policy-based financial institution, JBIC will continue to provide financial support for the overseas business expansion of Japanese companies, including mid-tier enterprises and SMEs, which actively address energy transformation for the realization of a decarbonized society, in collaboration with private financial institutions.
     

Note

1. *1 
   In a fusion fuel system, hydrogen isotope gases such as tritium, which is used as fuel, are exhausted from the core, captured for separation from unnecessary components, and circulated back to the core. This ensures a continuous fuel supply, which is one of the biggest challenges in fusion plants.