UK Fusion Energy Ltd (UKFE) has invested nearly £120m in advancing the design of STEP Fusion, the UK’s prototype fusion power plant programme.
According to its 2025/26 Annual Report, more than 370 UK suppliers are now involved, highlighting the programme’s growing industrial reach.
Located at the former West Burton Power Station site in Nottinghamshire, STEP (Spherical Tokamak for Energy Production) Fusion aims to demonstrate how fusion energy can be delivered at commercial scale while developing the skills, technology and supply chains needed for a future fusion industry.
Progress during the year included securing part of the West Burton site, appointing the ILIOS Consortium as construction partner and naming Tokamak Energy as the programme’s first systems partner.
The project also moved from concept towards preliminary design, alongside expanded technology demonstrations and increased intellectual property generation.
Speaking on the investment, UKFE CEO Paul Methven said: “This has been the year STEP Fusion moved from ambition into delivery.
“We now have major industrial partners in place, a site secured at West Burton and a growing UK supply chain helping build the technologies needed for future fusion power plants.
“Fusion has the potential to create skilled jobs, attract investment and establish a globally competitive British industry, representing one of the most significant long-term opportunities for clean energy, industrial growth and economic resilience.
“The progress UKFE has made during 2025/26 demonstrates that the UK is not only maintaining its scientific leadership in fusion, but is increasingly building the industrial capability required to deliver commercial fusion power plants in the future.”
Government funding supports STEP Fusion
The annual report highlights the UK Government’s commitment to advancing fusion energy, with £2.5bn allocated to fusion over five years. Approximately £1.3bn of this funding is designated for STEP Fusion.
About 80% of programme spending returns to the UK economy, supporting domestic businesses and strengthening the industrial capabilities needed to develop future fusion power plants.
UKFE also reported stronger collaboration with industry and academia as it works to bring together the organisations and expertise needed to deliver the prototype facility.
Its role as the UK’s national fusion systems integrator involves coordinating government, researchers, industry and investors.
Local suppliers play a growing role
The STEP Fusion programme is creating opportunities for businesses across the UK, particularly in regions with established industrial expertise.
Of the companies supplying the programme, 49 are based around West Burton. The area forms part of a former coalfield region spanning the East Midlands, South Yorkshire, and Lincolnshire.
UKFE says the programme could support skilled employment, investment and growth across sectors including advanced manufacturing, digital engineering, robotics and materials science.
It also expects the development of domestic expertise and supply chains to create opportunities in future export markets.
Appointing Tokamak Energy as the first systems partner is another step toward building these capabilities.
The company brings more than a decade of experience in designing, building and operating superconducting fusion magnets, contributing specialist engineering knowledge to the programme.
Meanwhile, appointing ILIOS as construction partner brings construction expertise to the project early, helping inform its development and delivery planning.
Simon Matthews, Programme Director for ILIOS, added: “STEP Fusion represents a once-in-a-generation opportunity to develop not only a new source of low-carbon energy, but also the industrial capability, skills and supply chain needed to support the UK’s future fusion industry.
“ILIOS is proud to be bringing construction expertise into the programme from an early stage to help shape an ambitious and deliverable project while creating lasting opportunities for businesses and communities across the UK.”
Next steps for STEP Fusion
During 2025/26, UKFE increased patent applications and intellectual property generation while expanding technology demonstration activities.
These efforts are intended to support the development of the technologies required for commercial fusion power plants.
The programme’s next phase, covering 2026/27, is expected to focus on continued design development, further planning engagement and additional technology demonstrations ahead of subsequent delivery stages.
STEP Fusion is intended to do more than demonstrate the potential of fusion power. The programme is also designed to establish the industrial capacity, workforce skills and supply chains needed to support a future UK fusion sector.
With major partners appointed, the West Burton site secured, and hundreds of suppliers involved, the latest annual report sets out progress towards turning the programme’s ambitions into a deliverable fusion power plant.
