FIA Launches Policy Vision for UK Commercial Fusion

UK can lead £31 trillion Global Fusion Industry, but government needs to act now to attract fusion companies, says Fusion Industry Association

• The UK is well placed to capture a big share of a potential £5billion global economic opportunity over the next five years, and a £31trillion opportunity longer term, says a new Policy Report from the Fusion industry Association (FIA).
• The UK is currently a leader in fusion, but must act now to secure its advantage.
• Report lays out four policy recommendations to attract fusion investment and secure the UK’s position in the global fusion race.

Fusion companies plan to invest well over £1billion during the next five years, creating a potential £5bn global economic opportunity, according to a policy report from the Fusion Industry Association (FIA), as the industry surges from research to commercialisation.

“The UK is well positioned to attract a major share of this value,” says Andrew Holland, Chief Executive Officer of the Fusion Industry Association (FIA). “But it’s important that it establishes the best possible framework to prevent it from losing its lead before it can reap the commercial opportunities. That is why we are today laying out four policy recommendations to make the UK an even more attractive place for the fusion industry to invest and grow.” 

The economic opportunity to the UK

Global fusion companies, responding to a FIA survey, say they plan to collectively spend well over £1billion in the next five years. Public sector investment in fusion has historically shown a one to four return on investment to the wider economy, suggesting a potential £5billion opportunity for the UK within the lifetime of this Parliament.

By 2029, fusion developers plan to make final investment decisions for at least 12 major fusion facilities. Many could be in the UK, with notable opportunities for communities such as Culham, West Burton, and other centres of fusion excellence. Each investment could create long-term financial commitments, workforce growth, spin-out potential, supply chain opportunities, and tax revenues.

“In other words, if the UK can persuade a few of these companies to commit to UK facilities, it can capture a significant share of this huge near and long-term economic opportunity, while also securing its legacy as a leader in fusion – a technology that could provide most of the world’s energy in the second half of the century,” says Holland. 

The business case – and the risks – for the UK

The UK is regarded as a world-leading marketplace for fusion by FIA members. 65% of leading fusion companies are considering establishing or enhancing their UK businesses, and a further 30% are open to doing so if the conditions are right. 

But only 20% felt certain the UK will become a strategically significant supply chain centre as the global market blooms. 

“While there is clearly a lot going for the UK, this is a competitive sector and fusion companies want to work with governments that establish the best possible ecosystem for fusion,” says Holland. “We believe the steps we outline today will lay the foundation for the UK to retain its status as a world-leading place to develop fusion, and give the industry the confidence it needs as developers pivot from research to commercial deployment.”

Four policy recommendations 

Today, the FIA calls on UK government to implement a policy framework which sustains the UK lead in fusion, maximises immediate economic opportunities, and establishes the foundations for a commercial fusion sector. 

In summary, the FIA’s four recommendations are:

1. Collaborate with industry – publish a renewed fusion strategy, which includes a fusion taskforce co-chaired between industry & government to signal commitment to fusion developers and investors, and provide communication channels between industry and government as the industry evolves. 

2. Maximise the economic impact of current public programmes to stimulate fusion and its supply chains. This should include giving STEP greater freedom over its own procurement; allowing STEP suppliers to retain IP to encourage development of innovative technologies that will benefit the industry as a whole; and setting up an independent body to support companies to navigate the process of applying for fusion grants.

3. Create clear processes for delivering private fusion projects. Establish a government-endorsed framework for planning and approval of private fusion projects, to streamline the process and provide confidence to companies considering establishing facilities in the UK.

4. Establish a clear, stable market framework for deploying commercial fusion. Such a framework need not be overly complicated and can include existing measures such as Contracts for Difference and Regulated Asset Base. It is critical that these are stated clearly, with no room for uncertainty, and that the process for establishing this framework begins soon, ahead of major investment decisions in the late 2020s that will define the future of fusion.

“The next five years are crucial,” says Holland. “The UK must act swiftly to take advantage of its decades of investment in fusion and its global leadership on policy frameworks, to ensure it retains and expands its lead in this transformative industry.”

The full Policy Report, including more detail on each policy recommendation, is below.