The programme developing the UK’s prototype fusion power plant has achieved a series of major milestones and appointed new industrial partners as it moves from research to delivery.
UK Fusion Energy (UKFE) has published its Annual Report for 2025/26, highlighting substantial investment in progressing the development of a once-in-a-generation technology viewed as critical to the UK’s energy future.
UKFE is leading on the development of the STEP Fusion prototype power plant at the West Burton Power Station site in Nottinghamshire and its report shows that it has invested nearly £120m progressing design – with more than 370 UK suppliers benefiting from the programme.
Among the key achievements reported during the year were the appointment of the ILIOS Consortium as STEP’s construction partner, the appointment of Tokamak Energy as the programme’s first system partner and the acquisition of part of the West Burton site that will host the prototype fusion power plant.
The report also highlights a strengthened commitment from Government to fusion energy, including £2.5 billion of funding for fusion over five years, with approximately £1.3 billion allocated to the STEP programme. Around 80 per cent of spending is going back into the UK economy.
STEP Fusion is intended to demonstrate how fusion power can be delivered at commercial scale while creating new industrial opportunities across the UK.
During the year, UKFE advanced STEP from concept towards preliminary design, expanded technology demonstration, increased patent applications and intellectual property generation, and strengthened partnerships with industry and academia.
Importantly, 49 of the companies supplying the STEP programme are from the area around West Burton – part of the former coalfield area that spans the East Midlands, South Yorkshire and Lincolnshire.
Paul Methven, CEO of UK Fusion Energy, said: “This has been the year STEP 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.”
He added: “Fusion represents 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.”
The report also highlights UKFE’s critical role as the UK’s national fusion systems integrator, bringing together government, industry, researchers and investors to deliver a prototype fusion power plant while developing the capabilities, supply chains and expertise required for future commercial deployment.
Warrick Matthews, Tokamak Energy CEO, said: “As STEP’s first system partner, we’re bringing more than a decade of experience designing, building and operating superconducting fusion magnets to one of the programme’s toughest engineering challenges. Together, we’re building national capability for fusion – from design through to manufacture – and a UK supply chain that can deliver a secure, low-carbon energy future.”
UKFE says the programme is helping establish the UK as a global leader in fusion delivery, creating new opportunities for advanced manufacturing, digital engineering, robotics, materials science and future export markets.
During 2026/27 the programme expects to continue design development, undertake further planning engagement and expand technology demonstration activities ahead of future delivery phases.
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.”
Read the full UK Fusion Energy Annual Report and Accounts 2025/26 here.
