Fusion energy powers UK’s Industrial Strategy
Source: gov.uk (2025-06-22)

Government’s Industrial Strategy, announced today, puts fusion energy at the heart of driving innovation, economic growth and energy security.

The UK is investing £2.5 billion over 5 years to lead the global race for fusion energy, with the STEP programme at its core. STEP (Spherical Tokamak for Energy Production) is the UK’s flagship fusion programme, aiming to deliver a prototype fusion power plant by 2040 at West Burton, Nottinghamshire. Built on the site of a former coal-fired power station, STEP is delivering a ‘fossil to fusion’ mission and will create thousands of jobs, as well as acting as an anchor for a new industrial ecosystem in the region as part of the East Midlands Combined Authority’s Clean Energy Supercluster along the River Trent. Delivered by UK Industrial Fusion Solutions (UKIFS), STEP is a cornerstone of the UK’s clean energy and industrial future.

The Industrial Strategy features STEP as a case study for fusion energy development, alongside further workstreams in the sector, such as the UK Atomic Energy Authority’s (UKAEA) Fusion Futures careers programme. Today’s announcements serve to highlight the government’s support for the sector and confidence in the STEP programme’s progress to date.

The Industrial Strategy also highlighted the UKAEA’s Fusion Futures programme, which aims to support skills and training in the sector, to stimulate supply chain activity and foster international collaboration. The UKAEA are the STEP Programme’s Fusion Partner and this work will support the shared aim to develop a strong UK fusion supply chain that can deliver commercial fusion power plants in the future.

Other recent UK fusion milestones include a UKAEA–ENI fusion energy fuels partnership announced in March, working to build the world’s largest tritium fuel cycle facility in the UK, and a £100 million investment boost via the Starmaker One fund from central government. Fusion is already delivering spillover benefits in AI, robotics and advanced materials - securing the UK’s place at the forefront of clean technology.

UKIFS CEO Paul Methven reflected on the Industrial Strategy announcement:

The UK is at the forefront of global fusion energy research, and STEP is the flagship initiative poised to transform that leadership into commercial reality. By building our prototype fusion power plant in the East Midlands, we’re not only advancing clean energy but also creating high-quality jobs, driving innovation, and delivering economic growth both regionally and nationally.

Maintaining our global edge in such a transformative technology demands ambition and today’s Industrial Strategy publication, with STEP at its heart, shows that government is rising to that challenge. We’re ready to turn this bold vision into action and ensure the UK leads the way in this exciting sector.

Secretary of State for Energy Security and Net Zero (DESNZ) Ed Miliband visited UK’s Fusion Research Campus in Oxfordshire earlier this year, where he 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.

In the introduction within the Industrial Strategy today, he lists fusion as a key part of the government’s mission:

(By delivering) fusion in the East Midlands we will deliver the benefits of our Clean Energy Superpower Mission to communities up and down the country.’

The project offers exciting innovation opportunities and a chance to shape the future of clean energy. STEP is currently in dialogue with potential Construction and Engineering partners, with announcements expected this coming winter 2025/26.

Notes to Editors

The Industrial Strategy is available here: Industrial Strategy: Clean Energy Industries Sector Plan (https://assets.publishing.service.gov.uk/media/68587856b46781eacfd71de4/industrial_strategy_clean_energy_industries_sector_plan.pdf)

STEP and UK Industrial Fusion Solutions (UKIFS) Ltd

The first of its kind, STEP is the UK’s major technology and infrastructure programme to build a prototype fusion power plant that will demonstrate net energy, fuel self-sufficiency and a viable route to plant maintenance. This will pave the way for the potential development of a fleet of future fusion power plants around the world and the commercialisation of fusion energy.

We’ll achieve this by producing a prototype tokamak power plant - in an innovative spherical shape - that will demonstrate net energy. That’s why the programme is called STEP: it stands for ‘Spherical Tokamak for Energy Production’. But STEP is about more than tokamak technology - it’s a huge endeavour encompassing design, site development and construction, alongside supply chain logistics and industry. Fusion research and development has the potential to catalyse new ideas and technologies that will benefit multiple industries and help secure our future on this planet.

By fusing government and business, inspiration and pragmatism, theory and practice, UK-expertise and international impact, we’re going to realise the step-change that will secure humanity’s bright future. A recent report by AMION, commissioned by local authorities, set out the economic potential of the STEP programme - summary HERE (https://www.nottinghamshire.gov.uk/media/vvhf5poy/stepsummaryreport.pdf#:~:text=AMION%20Consulting%20has%20undertaken%20an%20Economic%20and%20Wider,a%20key%20player%20in%20the%20global%20energy%20landscape.)

To sign-up for updates about STEP, visit: step.ukaea.uk (https://step.ukaea.uk/) or follow our social channels @STEPtoFusion (https://linktr.ee/steptofusion).