The UK government has announced a £20 million investment into a new fund designed to unlock around £100 million in private capital, accelerating the growth and commercialisation of fusion energy businesses.
The fund, named Starmaker One, is a British private fusion investment initiative aimed at positioning the UK as a global leader in fusion technology.
Fusion energy replicates the process that powers the sun, fusing two forms of hydrogen at extreme temperatures to release vast amounts of clean energy.
The funding will support small fusion companies in upskilling their workforce in critical areas such as physics, engineering, and chemistry.
Additionally, it will help businesses develop cutting-edge technologies and seize opportunities in emerging markets, including magnetics, industrial AI, robotics, healthcare, transportation, and energy storage.
UK companies have cited limited access to capital as a major barrier to scaling up and commercialising fusion technology. The government’s investment is expected to bolster private sector confidence, unlocking fusion’s potential as a near-limitless energy source.
The initiative is also projected to create jobs across the country. Research by London Economics suggests that every £1 invested in fusion yields nearly £4 in economic benefits.
Energy Minister Kerry McCarthy said: “This investment puts our Plan for Change into action – backing British innovators to deliver the clean energy of tomorrow while creating jobs today, from scientists and engineers to welders and construction managers. As nations worldwide recognise fusion’s transformative potential, breakthroughs are accelerating. This fund ensures the UK remains at the forefront of the global race, driving innovation, growth, and long-term economic prosperity.”
