A future powered by limitless clean energy is a step closer to reality, as researchers in the UK fusion industry are set to receive a record £410m investment from the government.
Investment in the UK fusion industry will help kickstart economic growth as part of the government’s Plan for Change.
The funding will support the rapid development of the UK fusion energy sector from 2025 to 2026 with investment in the skills needed for scientists, engineers, welders, and programme managers to enter the cutting-edge industry.
Fusion already supports at least 2,400 jobs in the UK, with thousands more to follow as the technology advances.
Unlocking new clean energy in the UK
Industry leaders have been shortlisted by UK Industrial Fusion Solutions (UKIFS) to help construct a world-leading fusion power plant in Nottinghamshire, unlocking a new clean energy industry for the UK.
Five construction and engineering bids have progressed to the next round of the UKIFS competition to deliver the prototype fusion energy plant by 2040, driving progress towards commercialising UK fusion to supply families and businesses with secure, clean and unlimited energy.
The prototype fusion energy plant is set at the site of a former coal power plant in Nottinghamshire and will revitalise a UK industrial heartland, supporting new, skilled jobs in former coal communities.
Energy Secretary Ed Miliband explained: “After scientists first theorised over 70 years ago that it could be possible, we are now within grasping distance of unlocking the power of the Sun and providing families with secure, clean, unlimited energy.
“Britain is at the forefront of this global race to deliver fusion, and today’s record level of funding will provide investment and economic growth through our Plan for Change, delivering on net zero and creating the clean energy of the future.”
Climate Minister Kerry McCarthy added: “Last year, Nottinghamshire marked the end of coal in our country after 142 years, and today, it starts the process to create the UK fusion industry of the future.
“We are taking a step forward in the global race to commercialise fusion, growing our economy, attracting investment and harnessing the power of the Sun to create clean, limitless, secure energy.”
Harnessing the potential of the UK fusion industry
Fusion uses the same process that powers the sun by combining two forms of hydrogen and heating them at extreme temperatures, releasing vast amounts of energy.
The UK is at the forefront of the global race to commercialise fusion and unlock its potential.
Earlier this week, the government also proposed plans for the UK’s first AI Growth Zone to be at the UKAEA’s fusion energy campus at Culham, Oxfordshire. This will utilise the advancements of AI to leverage computing power for fusion research and benefit the UK’s wider national AI infrastructure and the local area.
Delivering a world-leading fusion plant prototype
The multi-stage procurement process to deliver a fusion plant, known as STEP (Spherical Tokamak for Energy Production), is led by UK Industrial Fusion Solutions (UKIFS), a wholly owned subsidiary of the UK Atomic Energy Authority (UKAEA) Group.
The shortlisted companies will undertake detailed discussions with UKIFS, with one successful engineering and one successful construction partner being awarded contracts worth an initial combined value of hundreds of millions of pounds in late 2025/early 2026.
The shortlisted organisations for STEP’s Engineering Partner are:
- Celestial JV, consisting of Eni UK Limited as the lead member and AtkinsRealis, Jacobs Clean Energy (now Amentum), Westinghouse and Tokamak Energy as other members.
- Phoenix (UK) Fusion Limited, consisting of Cavendish Nuclear Ltd as the lead member, KBR Ltd and Assystem Energy and Infrastructure Ltd as other members.
The shortlisted organisations for STEP’s Construction Partner are:
- Inovus Infrastructure, consisting of Balfour Beatty Civil Engineering as the lead member and Vinci Construction, AtkinsRealis, Mott Macdonald and WSP as other members.
- ILIOS, consisting of Kier Infrastructure and Overseas as the lead member and Bam Nuttal, Nuvia Limited, AECOM Ltd, Turner and Townsend Infrastructure Ltd and Amanda Levete Architects Ltd as other members.
- Ferrovial Mace JV, consisting of Ferrovial Construction UK Ltd as the lead member and Mace Consult Ltd as the other member.
A crucial part of STEP’s mission is to develop a world-leading UK fusion industry to ensure the country remains at the forefront of a new technology and emerging industry.
Paul Methven, CEO of UK Industrial Fusion Solutions and Senior Responsible Owner for STEP, said: “The announcement of shortlisted organisations for STEP’s Whole Plant Partners is a critical milestone for our mission to demonstrate fusion energy and development of a world-leading fusion supply chain that unlocks significant industrial and economic opportunities.”
He concluded: “Together, we aim to lead the development of a fusion energy sector that will help meet rising global energy demand as well as deliver near-term benefits for industry and for the communities that will help build STEP.”
