A future powered by limitless clean energy is a step closer to reality, as researchers developing cutting-edge fusion energy receive a record £410 million investment, helping to kickstart economic growth as part of government’s Plan for Change.

The funding will support the rapid development of the UK fusion energy sector over 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.  

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 the commercialisation of fusion in the UK 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 said:  

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 said:  

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. 

Professor Sir Ian Chapman, UK Atomic Energy Authority (UKAEA) CEO, said:

I am delighted by the strong support from government to delivering fusion as a safe, sustainable energy of the future, and to anchor this exciting new industry in the UK.

Mayor for the East Midlands Claire Ward said:

This is fantastic news for Nottinghamshire and the East Midlands, a region that’s ready and willing to lead the way in clean, green energy. 

I am delighted the government is committed to this investment in the East Midlands and look forward to working together to kickstart a green industrial revolutions, creating skilled jobs in our former coal mining communities.

Fusion uses the same process that powers the sun by combining 2 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, which 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. 

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.   

Notes to editors

The £410 million investment of R&D funding will fund the UK fusion programme in 2025 to 2026.  This includes:

• STEP (a world leading prototype powerplant)
• Fusion Futures (a suite of measures aimed at building fusion capability, including skills development and LIBRTI, a new fusion fuel R&D facility)
• repurposing JET (the old fusion machine at Culham)
• supporting the UK Atomic Energy Authority’s existing research, innovation and facilities

This follows the announcement at Autumn Budget 2024 of “significant support in 2025-26 for UK fusion energy research”. 

The following construction partners have been chosen by the UKIFS for the next stage of the procurement process, bidding to help build STEP.   

• 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

The following engineering partners have been chosen for the next stage of the process.   

• 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