The world’s first prototype fusion energy plant will receive £2.5 billion, as announced by the chancellor of the exchequer, Rachel Reeves.

The new prototype plant, Spherical Tokamak for Energy Production (STEP), is to be built at the former West Burton A coal power station near Retford and Gainsborough in Nottinghamshire, which was decided by the government in 2022.

The project is expected to create over 10,000 jobs from construction to operations, and is a significant step in the UK’s mission to having fusion as a core part of the future energy mix.

STEP works by combining hydrogen gases, deuterium and tritium, which are heated to over 150 million degrees Celsius and confined with a powerful magnetic field. The energy produced can then be used to create steam, turn a turbine, and generate electricity.

Paul Methven CV, CEO of UK Industrial Fusion Solutions, the body responsible for delivering the STEP prototype fusion energy power plant, said: “The UK is the world leader in fusion energy research to commercial success, generating high quality jobs, multiple spin offs and boosting the economy nationally and in the East Midlands where we will build the first plant.

“Securing a global lead in such a vital new technology requires bold action; the government has rightly been bold today and we look forward to delivering the practical steps that will realise the vision of the UK leading in this exciting sector.”