10 June 2025
The UK’s Department for Energy Security and Net Zero announced its £2.5 billion investment in fusion energy as part of a record-level funding committment for fusion and nuclear fission energy ahead of the Government’s annual Spending Review.
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In response, Dr Paul Holligan, Vice President of Commercial and Partnerships at First Light Fusion, said:
“Today the Department for Energy Security and Net Zero set out its £2.5 billion investment in fusion energy – an exciting moment as Government clearly recognises the enormous potential of the UK’s world-leading fusion offering. We particularly welcome the plan for fusion research and energy to turbo-charge the Oxford-Cambridge corridor.
“What will we be looking for in the Spending Review tomorrow?
“Firstly, detail. This is potentially exactly the kind of investment programme our sector needs on the road to commercialising fusion – but businesses in our sector need clarity on how the innovation funding can be accessed, what elements of the £2.5 billion constitute new investment, and how the overall investment will open up new pathways to commercialisation that allows the sector to grow – and to give Government the best return.
“Secondly, diversification. Germany and the US are backing multiple fusion technologies across both Magnetic Confinement Fusion (MCF) and Inertial Fusion Energy (IFE). Diversifying British investment across both is critical. The STEP Programme is world leading and is showing incredible progress and results. We believe that the most effective funding explores the different technology paths available. This also de-risks our national investment rather than putting all our ‘eggs’ in one, single approach. No company or country has achieved commercial fusion yet – which is why betting on just one technology today would simply be hobbling ourselves early in the race. The UK wins from a diverse innovation and investment environment – including getting the economic benefits of multiple technologies and their value chains.
“IFE has already produced net Gain in fusion reactions – something not yet achieved by MCF. What is so exciting for our team is that we have moved from the ‘science fiction’ of a physics challenge, to an engineering challenge that is within our grasp. The amplifier technology we are already pioneering at First Light will be a critical part of any pathway to commercial inertial fusion energy – one the US is backing heavily.
“Even a relatively small investment in IFE would be a big deal for innovation in our sector, and for the real-world pathway to commercialisation. We look forward to seeing the details tomorrow – and hopefully to some great opportunities for OxCam corridor businesses like ours.”
