A first of its kind partnership between the government (funded by the taxpayers) and private sector could see over £100 million invested into the UK’s growing fusion energy industry
Today (3 April) the government has announced £20 million, of taxpayers' money, to kickstart ‘Starmaker One’ – a British private fusion investment fund that will help fusion businesses and start-ups in the sector grow and commercialise at scale.
It is expected the upfront investment, by the taxpayers, will unlock further investment from the private sector as the fusion industry grows – helping cement the UK as a world leader in the technology and creating highly-skilled jobs.
Fusion uses the same process that powers the sun by combining two forms of hydrogen and heating them at extreme temperatures, releasing vast amounts of energy.
Companies in the UK have often identified lack of access to capital as a barrier to scaling up and commercialising their businesses. An injection of cash from government will give the private sector confidence to invest in fusion, developing its vast potential as an unlimited source of energy and ensuring the UK continues to compete in the global fusion race.
The taxpayer funding boost will help small fusion companies provide training for their workforce in key areas such as physics, engineering and chemistry. It will also support companies to develop technologies and capitalise on the opportunities of fusion energy in markets such as magnetics, industrial AI, robotics, healthcare, transportation and energy storage.
Fusion already supports thousands of jobs in the UK, in regions such as Nottinghamshire, Oxfordshire and South Yorkshire, with thousands more to follow as the technology advances.
Fusion is a key industry sector in the Oxford-Cambridge Growth Corridor with independent research from London Economics showing that every £1 invested in fusion it benefits the economy by nearly £4.
Energy Secretary Ed Miliband said:
Science Minister and Oxford-Cambridge Growth Corridor Champion, Lord Vallance said:
Energy Minister Kerry McCarthy, said:
Investment in Starmaker One signals the first early-stage fusion energy venture capital fund outside the US and the first of its kind to partner with government as an investor. Investing in fusion technology will pave the way to delivering a clean safe, secure and abundant baseload energy, helping to meet rising energy demand in the years ahead.
This investment will give industry cash upfront to grow their businesses and supply chains. It follows on from a government commitment for a record level of £410 million, announced in January, for UK fusion research and collaboration with other countries to develop clean, unlimited power and drive economic growth.
Successful deployment of fusion energy would be globally transformative and allow the UK to export the technology to a global fusion market expected to be worth trillions of pounds in the future.
This notice is for information only and does not constitute an invitation to invest. The fund is not available to retail investors.
Notes for Editors