The UK Government has announced a groundbreaking £20m investment to launch ‘Starmaker One,’ Britain’s first private fusion power investment fund.
This initiative aims to accelerate fusion energy commercialisation, supporting businesses and start-ups in the sector to scale and innovate.
The upfront government funding is expected to attract further private sector investment, positioning the UK as a global leader in fusion technology and creating thousands of high-skilled jobs.
UK Energy Secretary Ed Miliband emphasised the significance of the investment: “This government is taking back control of Britain’s energy by driving for clean homegrown power through our Plan for Change.
“Fusion has the potential to provide us with energy security whilst attracting the best technologies to our shores and training up the next generation of British scientists and engineers.
“We are backing both nuclear and fusion power, and today, we take a step forward in growing this exciting industry.”
Fusion energy explained
Fusion energy is a revolutionary power source that mimics the same process that fuels the Sun.
It involves combining two isotopes of hydrogen at extreme temperatures, generating vast amounts of energy in a clean and virtually limitless way.
Unlike traditional nuclear fission, fusion does not produce long-lived radioactive waste, making it a safe and sustainable alternative for the world’s growing energy demands.
Breaking financial barriers to growth
Historically, UK fusion energy companies have faced significant challenges in accessing capital, limiting their ability to scale and commercialise their technologies.
The launch of Starmaker One provides crucial financial support, instilling confidence in private investors to drive fusion energy commercialisation.
By ensuring steady investment flows, the UK Government is reinforcing its commitment to maintaining leadership in the global fusion race.
Supporting innovation and job creation
The new funding will allow smaller fusion firms to train highly skilled professionals in key fields such as physics, engineering, and chemistry.
In addition, the initiative will help businesses develop and commercialise cutting-edge technologies in industries including magnetics, industrial AI, robotics, healthcare, transportation, and energy storage.
Fusion energy already supports thousands of jobs across the UK, particularly in regions such as Nottinghamshire, Oxfordshire, and South Yorkshire.
With fusion playing a crucial role in the Oxford-Cambridge Growth Corridor, investment in the sector is expected to generate even more employment opportunities.
Independent research from London Economics has found that every £1 invested in fusion energy contributes nearly £4 to the UK economy.
Science Minister and Oxford-Cambridge Growth Corridor Champion Lord Vallance added: “Fusion energy is a technology with enormous potential and an industry in which the UK is already well established.
“This investment will help to unlock the funding the fusion industry needs to grow, which will boost regions across the UK such as Nottinghamshire and South Yorkshire, and in Culham in Oxfordshire, the epicentre of UK fusion.”
Positioning the UK as a global fusion leader
The establishment of Starmaker One marks the first early-stage fusion venture capital fund outside the United States and the first globally to partner with a government investor.
This move underscores the UK’s ambition to lead in developing and exporting fusion technology to a worldwide market expected to be worth trillions in the future.
The investment aligns with the government’s broader commitment to fusion energy, following a record £410m investment in January to advance UK-based fusion research and international collaboration.
Tim Bestwick, UK Atomic Energy Authority (UKAEA) Deputy CEO, added: “UKAEA welcomes the new fusion fund, Starmaker One, backed by the UK Government and managed by East X Ventures.
“The field of fusion is a powerful driving force for innovation, and we’re just starting to see the expanse of opportunity this is bringing. The Starmaker One fund will help develop this innovation into exciting new businesses.”
If successfully deployed, fusion energy could revolutionise global energy systems, providing an abundant, secure, and clean power source to meet the rising energy demands of future generations.
By injecting capital into the fusion industry now, the UK is fostering long-term growth, strengthening supply chains, and paving the way for commercial-scale fusion energy solutions.
This landmark investment reinforces the nation’s status as a leader in sustainable energy, ensuring it remains competitive in the evolving global market.
