The UK is investing £2.5bn in fusion research and development in pursuit of providing commercial fusion energy.

On Monday, the government launched its Fusion Strategy and revealed details of its £20m cornerstone investment into Starmaker One, a UK fusion investment fund – backing British innovation and attracting the best technologies to UK shores.

The current conflict in the Middle East has highlighted the need for the UK to end its dependence on fossil fuel markets and accelerate the transition to clean homegrown power.

Fusion holds the potential to revolutionise the energy system and ensure lasting energy abundance and security.

The government say Britain is the first country in the world with a clear path to commercial fusion energy and will support over 10,000 UK jobs by 2030, drive investment, and give industry the confidence to take fusion from the lab to the grid, ready for deployment.

This includes plans for the UK to be the first to offer a market framework to attract and support private investment in fusion energy. This would provide confidence to investors and ensure a fair deal for consumers.

The strategy builds on the government’s record £2.5bn investment in fusion research and development secured at the Spending Review.

For the first time, the strategy breaks down how the investment will be spent, including a £200m contract for a new construction partner to build a world-leading fusion energy plant in a former coal plant in Nottinghamshire.

Known as STEP, the project is due to be completed by 2040 with plant construction expected to start from 2030 and jobs supported in the meantime including building R&D test facilities for key technologies.

Secretary of State for Energy Security and Net Zero,  Ed Miliband, said:  “From Nottinghamshire to Cumbria, and from the Oxford-Cambridge corridor to South Yorkshire, Britain has long been at the forefront of fusion energy.

Ed Miliband, Secretary of State for Energy Security and Net Zero

“With our Fusion Strategy, we’re going further – backing industry, supporting over 10,000 jobs, and paving the way for the ultimate long term energy security solution – clean, virtually limitless energy powered by British ingenuity and determination.

Lord Vallance, Minister for Science, Innovation, Research and Nuclear said:  “By backing our fusion industry, we are not only securing our future energy independence, but from innovation and research to engineers, we are also providing the skilled clean energy jobs of the future for British people.

“From the US to China and Japan, countries are racing to unlock fusion energy – a breakthrough technology that could create sustained economic growth, with the future fusion market expected to be worth up to £12 trillion in the second half of the century.

“By harnessing the power of the sun and fusing two forms of hydrogen at extreme temperatures, fusion energy can unleash vast amounts of clean, abundant homegrown power, with the potential to transform Britain and the world. “

Highlights of the Fusion Strategy included:

  • The UK will be the first country in the world to offer a market framework for fusion electricity to de-risk and incentivise private investment and enable fusion to power British homes and businesses.
  • A £200m construction partner contract announced for the STEP prototype fusion power plant to be built in West Burton. Backed by £1.3bn  of funding, UK Fusion Energy – which is to be renamed from UK Industrial Fusion Solutions – will be one of the best-capitalised fusion companies in the world, primed to deliver STEP.
  • The government is investing £45m to fund the world’s most powerful fusion‑dedicated AI supercomputer, developed in collaboration between UKAEA and the University of Cambridge, to accelerate fusion design, modelling and operations.
  • UKAEA and global energy tech company Eni have agreed to establish a company to advance fusion energy technologies.
  • A plan backed by £50m for the UK to be the home of fusion skills and innovation, with apprenticeships and an upcoming investment prospectus that will ensure countries invest and build for a bright future of fusion in Britain. This includes aiming to train over 2,000 people in fusion related disciplines.

Dr Tim Bestwick, group CEO of the United Kingdom Atomic Energy Authority (UKAEA), said:  “UKAEA fully supports the UK Government’s Fusion Strategy and its ambition to position the UK as a global leader in commercial fusion technology.”

Tristram Denton, UK Director of the Fusion Industry Association, said:  “Commercial fusion power is scheduled to be online in the 2030s, and today’s commitment to establish a strong market framework is another step towards the UK being at the very heart of this generational industrial opportunity.”

Warrick Matthews, CEO of Tokamak Energy, said:  “We welcome the government’s commitment to establishing the UK as a global leader in fusion – the 21st century’s most important technology.

“Tokamak Energy brings extensive expertise to the race, including power plant-relevant results on our groundbreaking spherical tokamak and world-first high temperature superconducting (HTS) fusion magnet system.

Mark Thomas, CEO of First Light Fusion, said:  “First Light Fusion welcomes the publication of the new Fusion Strategy and its recognition that fusion power offers an achievable pathway to clean, affordable energy security for the UK.”

Valerie Jamieson, development manager at the Fusion Cluster, said: “The Fusion Strategy is a major boost for the UK’s fusion industry. A world‑first market framework, clearer investment pathways and new skills support give companies the certainty they need to invest, scale, and innovate. With today’s commitments, the UK is signalling that it is serious about leading the global fusion race.”