Fusion industry boosted by £410m government investment

The UK government has announced a record £410 million investment in fusion energy, aimed at boosting the sector and creating thousands of jobs as part of its Plan for Change.

This funding will support the rapid development of the fusion industry through 2025 and 2026, focusing on skills training for scientists, engineers, and welders. Currently, fusion energy supports around 2,400 jobs, with significant growth expected as technology advances.

UK Industrial Fusion Solutions (UKIFS) has shortlisted five companies to compete for the construction of a prototype fusion power plant in Nottinghamshire, set to replace a former coal power site. The plant aims to be operational by 2040, providing secure, clean energy to homes and businesses.

“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,” says Energy Secretary Ed Miliband. “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 adds:

“Last year Nottinghamshire marked the end of coal in our country after 142 years and today it starts the process to create the energy 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.

“This is what our clean energy transition is about – creating jobs in our local communities and building the skills that we need on the path to net zero.”

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 set to be awarded contracts, worth an initial combined value of hundreds of millions of pounds, in late 2025 / early 2026.