The Fusion Industry Association (FIA) has unveiled a bold new policy vision, emphasizing that the UK is at a critical juncture to secure its leadership in the rapidly growing global fusion energy industry. The FIA’s new Policy Report outlines a path for the UK to capture a significant share of an anticipated £31 trillion global economic opportunity over the coming decades. However, the FIA stresses that decisive government action is needed now to maintain the UK’s edge.
A Transformative Economic Opportunity
Fusion energy, which promises clean, limitless power, is poised to revolutionize the global energy landscape. According to the FIA’s report, fusion companies worldwide plan to invest over £1 billion in the next five years, representing a potential £5 billion economic opportunity for the UK in the short term. Long-term, the industry could drive a staggering £31 trillion global market.
“The UK is well-positioned to attract a major share of this value,” says Andrew Holland, CEO of the Fusion Industry Association. “But to fully capitalize on this potential, the UK must act swiftly and decisively to establish the best possible framework for fusion companies to invest and grow.”
Securing the UK’s Competitive Edge
The UK currently leads in fusion research, with a strong ecosystem centered around fusion hubs like Culham, West Burton, and other centers of excellence. The FIA survey reveals that 65% of leading fusion companies are considering expanding their operations in the UK, and 30% are open to doing so if conditions improve.
However, only 20% of respondents expressed confidence that the UK would become a strategic supply chain hub for fusion energy. The FIA cautions that while the UK enjoys a strong position, competition from other nations is fierce.
“Fusion companies are drawn to regions where governments provide clear, supportive ecosystems,” says Holland. “The UK must ensure it remains at the forefront as the industry transitions from research to commercialization.”
The Four Policy Recommendations
To secure its leadership and attract investment, the FIA has outlined four key policy recommendations for the UK government:
- Collaborate with Industry:
- Renew the UK’s fusion strategy with a fusion taskforce co-chaired by industry and government.
- Establish communication channels to adapt as the industry evolves.
- Maximize Economic Impact:
- Enhance the effectiveness of current public programs such as the STEP program, allowing suppliers to retain intellectual property to foster innovation and supporting companies navigating the fusion grant application process.
- Streamline Private Fusion Projects:
- Create a government-endorsed framework for planning and approving private fusion projects to reduce bureaucracy and encourage investment.
- Establish a Stable Market Framework:
- Develop clear measures such as Contracts for Difference and Regulated Asset Base models to provide certainty for investors ahead of critical investment decisions in the late 2020s.
The Business Case for Fusion in the UK
The FIA’s report highlights the immediate and long-term benefits of positioning the UK as a fusion leader. By 2029, fusion developers expect to make final investment decisions for at least 12 major fusion facilities, many of which could be located in the UK. These projects would create thousands of jobs, drive supply chain growth, and secure tax revenues for the country.
“In other words, if the UK can persuade companies to commit to facilities here, it can capture a significant share of the economic and technological benefits of fusion,” Holland says.
A Call to Action
The FIA emphasizes that the next five years are critical. The UK must leverage its decades of investment in fusion research and its existing leadership in policy frameworks to secure its position as a global leader in this transformative industry.
“The UK has a unique opportunity to shape the future of energy,” Holland concludes. “But it must act now to turn its fusion expertise into commercial leadership.”
The full Policy Report, detailing the FIA’s recommendations, is available for stakeholders and policymakers to review.
