£2.5 billion for world-first prototype fusion energy plant

A record £2.5 billion of additional funding has been announced this week by the Rt Hon Rachel Reeves, Chancellor of the Exchequer, to support the development of the world’s first fusion power plant.

The new prototype plant, known as STEP (Spherical Tokamak for Energy Production) will be built at the site of the former West Burton A coal power station near Retford and Gainsborough. The site was chosen by the government in 2022 as the location for the project, with the project’s delivery expected to create over 10,000 jobs ranging from construction to operations. The announcement shows the government’s firm commitment to becoming a “clean energy superpower” by turbocharging innovation in an area that’s produced conventional power for generations.

A groundbreaking and world-first scientific endeavour, STEP works by combining hydrogen gases, deuterium and tritium, which are heated to over 150 million degrees Celsius and confined within a powerful magnetic field. The energy produced can then be used to create steam, to turn a turbine, generating electricity – just like in any conventional power plant.

The end of coal power in Nottinghamshire was marked by the closure of Ratcliffe-on-Soar Power Station in late 2024. With the creation of STEP in West Burton, Nottinghamshire’s “Megawatt Valley” will continue to be at the heart of the UK’s energy production – whilst leading the world in creating the green, sustainable energy of the future.

The record-breaking £2.5 billion of additional funding announced this week shows the government’s firm commitment to fusion as a core part of our future energy mix, and to this significant investment in the economy in Nottinghamshire and the East Midlands.