Funding boost for UK fusion R&D

Thursday, 16 January 2025

The funding - announced by the Department for Energy Security and Net Zero - will support the 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 industry.

This new investment includes: development of the UK's STEP (Spherical Tokamak for Energy Production); Fusion Futures (a suite of measures aimed at building fusion capability, including skills development and LIBRTI, a new fusion fuel R&D facility); repurposing the UK Atomic Energy Authority's Joint European Torus (JET); and supporting the UKAEA's existing research, innovation and facilities.

"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," said 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."

The funding announcement came as UK Industrial Fusion Solutions (UKIFS) - a subsidiary of UKAEA - announced the shortlisted organisations competing to become engineering partner and construction partner for STEP. The prototype fusion power plant will be built at the site of a former coal power plant at West Burton in Nottinghamshire and is due to begin operating by 2040. It aims to demonstrate net energy from fusion alongside fuel self-sufficiency and a route to plant maintenance.

STEP will be delivered by a public-private sector integrated team consisting of UKIFS, UKAEA as fusion partner and the engineering and construction partners.

The contracts for STEP's engineering and construction partners will be worth an initial combined value of "hundreds of millions of pounds" during the first contract period until 2029. Further phases will continue the long-term collaboration that builds progressively with the programme.

The shortlisted organisations for STEP's engineering partner are: Celestial JV, consisting of Eni UK Ltd as the lead member and AtkinsRealis, Amentum, Westinghouse and Tokamak Energy as other members; and Phoenix (UK) Fusion Ltd, 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 Ltd, AECOM Ltd, Turner and Townsend Infrastructure Ltd and Amanda Levete Architects Ltd as other members; and Ferrovial Mace JV, consisting of Ferrovial Construction UK Ltd as the lead member and Mace Consult Ltd as the other member.

"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," said UKIFS CEO Paul Methven.

"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."

The shortlisted companies will now enter detailed discussions known as 'competitive dialogue' with UKIFS as the multi-stage procurement process progresses towards final partner selection in late 2025/early 2026.