This funding is part of the government’s Plan for Change to kickstart economic growth and enhance the UK’s position in fusion energy. Credit: BeAvPhoto/Shutterstock.

The UK government has announced a £410m ($501.1m) investment to support the development of fusion energy, a move that could facilitate the construction of a fusion power project on the site of a former coal facility in Nottinghamshire.

The funding is part of the government’s Plan for Change, aimed at kickstarting economic growth while enhancing the UK’s position in the emerging fusion energy sector.

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The investment will facilitate the rapid advancement of the UK fusion energy sector from 2025 to 2026.

It will also help focus on developing the necessary skills for scientists, engineers, welders and programme managers.

Fusion energy supports at least 2,400 jobs in the UK, with thousands more expected as the technology progresses.

UK Industrial Fusion Solutions (UKIFS) has shortlisted industry leaders to assist in constructing the fusion power plant in Nottinghamshire.

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The initiative aims to unlock a new clean energy industry in the UK, contributing to the commercialisation of fusion energy to provide secure, clean and unlimited energy.

Five construction and engineering bids have advanced to the next stage of the UKIFS competition, which seeks to deliver the prototype fusion energy plant by 2040.

The project is expected to revitalise the Nottinghamshire region and create skilled jobs in former coal communities.

Additionally, the government has proposed plans for the UK’s first AI Growth Zone at the UK Atomic Energy Authority’s fusion energy campus in Culham, Oxfordshire.

These initiatives will leverage advancements in AI to enhance computing power for fusion research while benefiting the UK’s broader national AI infrastructure and the local area.

UKIFS will lead the multi-stage procurement process for the fusion plant, known as STEP (Spherical Tokamak for Energy Production).

The shortlisted companies will engage in detailed discussions with UKIFS, with one engineering partner and one construction partner expected to be awarded contracts, initially valued at hundreds of millions of pounds, in late 2025 or early 2026.